Volex Share Discussion Threads

[mfhmfh] 09/11/2018 12:10

Liberium Capital today reiterates buy rating and 117p target price.

GLA.

[waspfactory] 09/11/2018 09:54

Nice to read such a bullish statement for a change - very happy to be holding.

[mfhmfh] 09/11/2018 09:39

positive ha;f year results IMHO:

'... the Board is optimistic about the future outlook and expects full year trading performance slightly ahead of market expectations'.

future acquisitions possible:

'Further we are in discussion with several potential acquisition targets and we expect to make further announcements in this regard in the second half of the year'.

[cheshire man] 09/11/2018 08:03

Excellent report :-)

[pugugly] 09/11/2018 07:19

Accounts out - V good progress but may not be as much as Mr Market expected

[cheshire man] 06/11/2018 11:12

Nice move up on small volume ,,,,,,,results due on Friday I think and reading the below "ahead of our expectations" should be very positive,,,,,DYOR of course



31 July 2018



Volex plc



AGM and Trading Update



Volex plc ("Volex"), one of the world's largest manufacturers of premium power cord and harness assemblies, is today holding its Annual General Meeting during which the Chairman will make the following statement on trading for the three months ended June 2018:



"I am pleased to report that trading for the first quarter has been ahead of our expectations. Profitability has improved in the first quarter of FY2019 versus the prior year, as we enjoyed higher revenues and lower operating expenses as a result of continued cost reduction initiatives.



Our revenue has increased across all of our major geographies in the first quarter. We are seeing growth from both our established customers and building on our successes in winning new customers. We continue to diversify and reduce the concentration risk in our revenue stream, and have seen revenue growth, on a like for like organic basis, in excess of 7 per cent in the first quarter of FY2019.



The cost pressure that we were experiencing in the second half of last year has lessened, with the price of copper reducing and the dollar strengthening against our main functional currencies.



We continue to assess the ramifications of a possible trade war between the US and China. We have yet to see an adverse affect on our business, or that of our major customers, but continue to monitor this situation closely. One of Volex's strengths is our global footprint as well as the ability to manufacture and deliver a variety of products from our "hybrid" facilities.



We have made good progress in integrating the two recent acquisitions, MC Electronics and Silcotec Europe. The culture of both companies fits well with our own culture and we expect to see growth from both operations in FY2019.

[greenroom78] 10/10/2018 17:02

No, I'm not selling.

[spooky] 10/10/2018 16:24

Is that you trying to get out?

[imastu pidgitaswell] 27/9/2018 16:31

Well that didn't go too well. Some things re VLX just don't change.

[brucie5] 26/9/2018 20:21

Looks like the awaited breakout over 90p. Need to have it confirmed tomorrow. 12 month high. Great chart.

[fillipe] 26/9/2018 17:06

I'm pleased to be holding VLX since early 2018 - and particularly happy to have a share which is steadily and gently upticking.

f

[imastu pidgitaswell] 26/9/2018 16:10

Indeed. Might just see a 90p trade for the time in a long time (edit - we did; it's like a dam just broke as the trades flood through).

Feels like it was last in the 90s in the previous century...

[greenroom78] 26/9/2018 16:07

61k @89.8p - Confidence.

[toffeeman] 22/9/2018 10:06

Brexit affects will be currency based only

[brucie5] 21/9/2018 16:03

Decided to get back in on this small retrace. Needs to get over 90p, and then I can see 1.20. Quality company re-emerging here. Hope it will not be affected by Brexit.

[imastu pidgitaswell] 20/9/2018 13:46

Thing is, I was suggesting that some 5 years ago. But yes, give me 160 or so for a takeover and I'll allow it. Nat might not though.

Looking good for a step up - I've stopped selling, so let it rip...

:-)

[waspfactory] 19/9/2018 09:35

Morning, I'm back in after a long time out of VLX, I like the recovery story and Directors holdings and buying. Potential for MA imo, a good fit for TT Electronics. GLA.

[robow] 03/9/2018 12:29

Telegraph Questor - 2 shares for Inheritance Tax portfolio od AIM shares
Volex
Volex makes power cords and cable assemblies for use in electronics and electrical devices. The business goes back 120 years and this perhaps accounts for some of its past problems: it operated in commodity-type markets at a time when low-cost competition from automated Chinese rivals put profit margins under pressure.

Management and strategic changes were tried but all “failed to capitalise on the firm’s competitive strengths”, said Nick Hawthorn of Downing, whose firm holds Volex in its IHT portfolio. “Investors lost heart and its market value fell significantly,”; he added. New managers are now in place.


“Where previous teams invested in chasing low-quality revenue and earnings growth, the new one focuses on operational and supply chain excellence and profitable growth,” Hawthorn said. Volex now plays to its strengths in areas such as cable assemblies for use in data centres and healthcare, where the work is labour intensive and quality is critical.

“It is focusing on the opportunities against which Chinese automation can compete least effectively,” the fund manager added.

He also pointed to the alignment of interests between the new managers and investors: the former own more than 25pc of the equity – shares they have paid for, not acquired via options.


Hawthorn said Volex had market-leading attributes in global sourcing and production, significant investment in capital assets, a skilled and global workforce, blue-chip customers and a long-standing reputation for quality. “We believe these qualities create an economic ‘moat’ and a position of strength in the highly fragmented industry in which it operates,” he said.

The shares trade at about 10 times forecast earnings – low for a stock whose organic growth is expected to be about 10pc a year.

“We think Volex has now turned a corner, posting its first statutory profit since 2012,” Hawthorn said. “The turnaround has been well executed and there are great opportunities to profitably grow the business. This has yet to be reflected in the share price. We think Volex is one of the most attractive opportunities at the smaller end of the Aim market.”

Questor says: buy

Ticker: VLX

Share price at close: 82.6p

[cheshire man] 03/9/2018 11:13

After my recent purchase delighted to see your chart projection HB, time will tell if it plays out :-)

[pugugly] 31/8/2018 11:17

Tipped in the Telegraph today

[brucie5] 31/8/2018 09:52

It's a Shaughnessy 'Cornerstone Growth' stock on Stockopedia. "Marrying good value characteristics with price momentum is an excellent way to find 'cheap stocks on the mend'.

As to the chart, maybe, this time it's different. Or third time lucky...
Certainly there has been some director buying.

[toffeeman] 31/8/2018 09:39

Or a triple top?

[horneblower] 31/8/2018 09:25

I like this chart. Once it clears congestion and stays above 90p it should climb towards 165 area.