Volex Share Discussion Threads

[dlku] 02/10/2015 11:59

what a brimful crock of sheet

[time_traveller] 02/10/2015 11:57

5 year share price low I think. CFO confident, but it doesnt look like anyone else is.

[coolen] 01/10/2015 19:57

Dead right T/traveller, actual trade time was 2pm on 29 September.

[time_traveller] 01/10/2015 17:31

Showing an 138,400 trade at 71.75p after the close. I suspect it's just a delayed report (?).

Edit - now its disappeared

[imastu pidgitaswell] 01/10/2015 10:36

Finncap buying the story, at least:

hxxp://sharedealing.nandp.co.uk/broker-views/VLX/Volex-Group


Edit - and so are Ruffer, increasing their holding. Better than dumping it...

[mike740] 30/9/2015 12:29

yesterday.

[she-ra] 30/9/2015 12:28

mike740 - Sorry to tell you but he appears to have sold out last month.

[time_traveller] 30/9/2015 12:27

Imastu - good post. Yes; 'cost' for building up inventories is the wrong word, (I added that operating costs are lowered) but I'm wondering why they added something normally so inconsequential to the statement; It made the whole thing look obfuscatory, which is perhaps why it was so badly received, and tends to lead to conclusions such as toffeemans. As I'm break even, (having lost several thou of profit in the last two weeks) I can afford to be a little more relaxed about Volex, and take heart that a takeover may now be more akin to pushing on an open door, whereas they are normally strewn with obstacles.

[imastu pidgitaswell] 30/9/2015 11:18

To be fair the company didn't say ""Costs higher due to building up inventories" - the BB poster did in 2571.

The company said costs were lower - "We continue to improve the efficiency and cost structure of our operation"

And re the earlier point, building up inventories does not show in operating costs - assuming they do use the stuff they are manufacturing. If not, then they would be written down - not good.

But not the main issue.


The second comment ""we are building stock in support of anticipated higher volumes" = "We kept the factories going in the hope that things will improve" is possibly more contentious (might be some truth in it), but I would hope that they have far better communication and visibility from their major customers (as they told us they have) and the anticipation is not 'hope' but communicated expectation. But then this is Volex - they use 'anticipate' or its derivative three times in a short trading statement, all of which could be interpreted in more than one way.


Positively, lower revenue than 'anticipated' could mean deferrals and no overall reduction - the rest of the statement supports that. Cost controls still in place and the Transformation Plan in place. Erm, yeah.

And losing Eisenhardt may also be beneficial - he is expensive, prone to throwing money at a problem (imho). The interim CEO knows this business (ex CEO of a mooted acquirer - makes it more plausible, i.e. fix it in one swoop by having your former company buy it out, take out central and plc overheads, reap the margin benefits, good return for not a lot of money - the takeout price will be lower now. Straw-clutching...

Dunno. Want to give the benefit of the doubt, but how many times...

[toffeeman] 30/9/2015 10:27

"Daren Morris the Chief Financial Officer, purchased 20,000 Ordinary Shares of 25 pence in the Company ("Ordinary Shares") at a price of 71.4 pence per share" = "Darren go and buy £14k of stock please pour encourager les autres and we will cover your costs through a bonus"

[she-ra] 30/9/2015 09:41

time_traveller - there is that.

[time_traveller] 30/9/2015 08:49

At least the CFO finds some scope for optimism. (share purchase)

[toffeeman] 30/9/2015 08:42

"Costs higher due to building up inventories" = "We lost orders we thought we would get"

"we are building stock in support of anticipated higher volumes" = "We kept the factories going in the hope that things will improve"

[time_traveller] 29/9/2015 23:19

I do find the RNS a bit oddly worded.
"we are building stock levels in support of anticipated higher volumes in the coming months" - anticipated being the operative word, and I suppose like many businesses, the costs and revenues / supply and demand ebb and flow, not always in harmony, especially given product lead times.

Demand was lower in the first 1/2, but so were costs, with operating profit expected to be flat, and in line with expectations; Underwhelming, but unremarkable, so it looks to me like most of the drop was due to the loss of the CEO; and losing board members seems to be an unfortunate habit for Volex, or as Oscar Wilde would put it; careless.

[jbarker5555] 29/9/2015 21:45

t_t - "Costs higher due to building up inventories". Sorry for being naive but is that really true? Surely inventories will increase along with trade creditors increasing so offsetting each other. Therefore costs haven't increased, stock increases and creditors increases by the same amount, just a balance sheet difference surely? :)

[she-ra] 29/9/2015 17:40

When there were less shares in January 2009 when they went as low as 15.25p you would have thought they would have been a takeover target.

But im sure the company is in better health now

Lets hope those new products by their customers sell well.

[time_traveller] 29/9/2015 15:43

Operating profit in line. Costs higher due to building up inventories.

Well rid of Eisenhardt - he was crazy expensive and didn't deliver anything transformational so far as I can tell. Personally, I'd like Anderson to become permanent ceo - dunno if that's possible.

A nice take over target now.

[she-ra] 29/9/2015 13:40

time_traveller - Yes but there was a trading update that didn't sound too great.

[time_traveller] 29/9/2015 13:35

No, CEO leaving.

[she-ra] 29/9/2015 13:08

Is todays trading update a profits warning?

[cockneyrebel] 31/7/2015 16:03

Firm those large trades today.

CR

[freddie ferret] 30/7/2015 19:28

Upward slowly and steadily it seems.

[imastu pidgitaswell] 23/7/2015 15:56

H2 2014 resistance coming up at 90p odd as well.

Would be nice if once, just once, this thing responded positively to a statement.

[cockneyrebel] 23/7/2015 15:53

Breaking out through the May high.

CR