Volex Share Discussion Threads

[f15jcm] 01/8/2019 10:41

I've added. My largest holding.

[sphere25] 31/7/2019 09:25

Buying here. There is some nice buying coming in this morning. Have to take advantage of any fund mangler giving their stock away cheap, because it won't last long imo.

Stock has retreated from the recent highs of around 100 with the market selling this off (almost 15%) expecting some form of very toned down/cautious update. That update was good and is setting up for consensus upgrades later this year imo.

The acquisition appears to be growing like the clappers, and with the leveraged footprint provided by Volex, I suspect that could well surprise to the upside also. What we ultimately have now have is a significantly lower valuation with much more confidence in the earnings as well as the earnings enhancing acquisition.

I'll be surprised if the market doesn't factor these in very soon and drive the stock to new highs above 100.

Update 01/08/2019: Chairman (53,876)and CFO (20,000) both buying stock.

[spooky] 31/7/2019 08:52

Who is the seller here? Its been going on for months and there hasn't been a holdings announcement for more than a year.

[soundbuy] 31/7/2019 08:22

Comfortable hold (if there is such a thing in present climes)......seller about yesterday......once cleared could well motor given liquidity

[thorpematt] 30/7/2019 20:44

A whole ruck of news today on this one. I think the TS was very positive indeed and the return of dividend indicateds confidence.

Despite a tidy sized acquisition the balance sheet is very strong.

For UK based investors exposure to USD earnings mean repatriated EPS will of course be worth a little more than previous and a nice hedge against falling GBP.

There was a time when VLX was really not making any REAL progress a business at all. Until very recently annual losses and then no profits of significance can be seen on the income statements. Now brokers forecasts look to be circa $20m USD (PBT) and EPS of circa 11GBp.

VLX now appears to represent a better investment than the average UK listed stock. Given that the average PER for the FTSE is presently 12.5 it would not be too much to apply such a rating to VLX with its strong balance sheet and inferred growth profile. Such a calculation implies a valuation of £1.38 so significant upside IMV.

[igoe104] 30/7/2019 17:24

Share Magazine Comment.



Volex reports strong growth despite US China tariffs


30 July 2019, 10:00
Source - SMW

Cable assembly and power product provider Volex has reported a 12% increase in revenue, yielding an operating profit margin ahead of expectations.

In a trading update ahead of its annual generating meeting, executive chairman Nat Rothschild said the company's global footprint has allowed it to mitigate the effects of the US China trade tariffs.

He added: 'We have secured a number of new major contract wins in our PVC power business as our strategy to invest in automation, vertical integration and standardised products improves our competitiveness in the market.'

Volex's board has recommended an interim dividend in respect of the year ending 5 April 2020 of 1p per share, which will be paid following the announcement of its interim results in November 2019.

Rothschild added that Volex is 'well positioned to make further progress this year' and that the board remains confident about the firm's outlook.

[jackdaw4243] 30/7/2019 17:14

With pound down should be a plus anything in cable

[f15jcm] 30/7/2019 15:52

VLX accounts are in $, it's a multinational business which happens to be London listed.

[buywell3] 30/7/2019 14:46

UK company acquiring US company with GBP near to 10 year lows or worse

Great timing

[spooky] 30/7/2019 14:08

Surely these are much too cheap, what am i missing?

[igoe104] 30/7/2019 13:51

Canny acquisition, being north American based, should help avoiding the tariffs. Its just crazy how some shares fall for no reason.

[f15jcm] 30/7/2019 12:18

Looked expensive until it mentioned the growth. The valuation of the acquired company certainly makes Volex look like a bargain.

[robow] 30/7/2019 12:00

oh thanks. Missed that. a 'win win deal'

[podgyted] 30/7/2019 11:58

Certainly piling it on today!

At first glance that is an excellent acquisition.

[zipstuck] 30/7/2019 11:58

Another side step of trade talks - well done VLX. I was an unsure holder after the last acquisition but they seem confident going forward and margins are improving.

[davr0s] 30/7/2019 11:46

Acquisition announced now as well. They are having a busy day

[gleach23] 30/7/2019 11:26

Very pleased with that update.

As far as buywell is concerned, I only ever see he/she post as an apparent non-holder on shares under pressure.

[davr0s] 30/7/2019 09:30

Another mystic Meg who surprisingly makes failed prediction

[podgyted] 30/7/2019 09:22

Out at 9am this year. Ahead of expectations - initial interim divi of 1p in November.

[soundbuy] 30/7/2019 07:38

Cheers..........thought as much

[otemple3] 30/7/2019 07:33

Trading statement came out at 11am last year - I assume aligned with AGM timing

[soundbuy] 30/7/2019 07:30

Tick tock........

[edpick] 29/7/2019 15:22

What makes you say that, buywell? Anything fundamental or just looking at the chart? Looks like there's been a few c10% dips over the past year that with hindsight were good buying opportunities. I guess we'll find out tomorrow