Xp Power Share Discussion Threads

[sharw] 03/8/2022 15:02

suetballs - my feelings exactly. With the benefit of hindsight it would have been good to sell at £56 (Aug. 12 - 17 last year) or even £36 (after first mention of court case verdict) but we live and learn.

I was lulled by the initial market reaction - small drop to £29 on Monday morning, having been at or below that for much of the last month. Then at 11 00 the great slide started and I decided there might be a dead cat bounce and I would get out then. The following morning the slide resumed and I gave up the bounce thought and got out at 2510p. With my usual timimg this would have been the lowest trade of the day but no - the slide has continued. You could say the same after getting out this morning!

Here's to a better night's sleep!

[suetballs] 03/8/2022 13:26

Decided to sell earlier this am for what I bought my shares for.
The ride down from £50 has been very painful but tbh I can't see any short term upside.
The funds raised are now invested in hsba and dge and I will sleep more easily.
Should have sold when the litigation first surfaced - but hey ho.
Suet

[owenski] 01/8/2022 21:29

Margins getting trimmed, but the biggy is the litigation, it's an unknown as to what additional costs will be applied.

PE not cheap either, this has got further to fall IMO

[thorpematt] 01/8/2022 20:09

Here's Edison's updated note from this morning: -




And a nice video to go with it: -



--------------

Does anyone have a view on further litigation?

By which I mean: Does one succesful case against XPP increase the likelihood of another one being instigated?

The USA can be a very litigious operating environment.

TIA for any views.

[mjneish] 01/8/2022 16:18

The shares still look expensive considering the uncertainties stated.

They've maintained their dividend, and the historic yield is now 3.6%. If the price goes down further, the dividend could provide some support, provided of course that the company is able to maintain it in the second half. The financials look like a maze, so that's hard to say. Net debt is sharply up.

[suetballs] 01/8/2022 13:13

Looks like my first thoughts were correct.
Ugly now.
Suet

[suetballs] 01/8/2022 08:26

Opening not as bad as I feared!
Suet

[suetballs] 01/8/2022 07:40

Half year results - mmm.
More negatives than positives tbh.
Supply chain issues, margins under pressure and Comet legal issue.
But good order intake,supportive banks and 'long term prospects remain bright'.

Sadly I expect a material neagative market reaction this am.
Suet

[mjneish] 23/6/2022 14:54

I think the PE ratio had a healthy bit of expectation built in, and even now the valuation looks rather generous to me given the issues described above. It looks like a good company so they may become attractive again at the right time.

[steadyaway1] 22/6/2022 13:35

Such an information vacuum. It's completely bizarre how they can't provide moreinfo without prejudicing their case. There's always a way.

[jacks13] 22/6/2022 12:42

They had £40 million of gross debt at 31/Dec; a $40 million fine to pay and, as yet, undefined potential restrictions on their rights to manufacture products derived from the 'stolen' Comet technology.

There are also issues that are not exclusive to XP Power around supply chains; sourcing of microchips and global inflation plus recession concerns. This share price is not going to rise any time soon in my judgement. The Summer months are usually quiet anyway and if anything the market could actually sell off. So people seem to be heading for the exit.

I've (painfully) halved my holding, not because I've lost faith in the company but for the above reasons and on the basis that I can likely get back in when the uncertainties have started to disappear. All in my opinion but do your own as they say.

[suetballs] 22/6/2022 11:32

This falling share price is relentless - can see £20 at this rate.
Not good but I continue to hold.
Suet

[steadyaway1] 20/6/2022 22:19

Any ideas behind the drop today?

[mtioc] 16/4/2022 10:46

Completely agree. Have owned since c.2012. However, not sure if commenting would impact their conduct of case (e.g. appeal strategy).

Other short term trends seem positive - e.g. strong orders etc In the longer term, I wonder what the implied revenue capacity of the group is in, say, 2025, when Malaysia is fully established.

[kingjames] 16/4/2022 10:16

Bad stuff happens from time to time, and having held for quite some time (probably since 2010 or so) this is first time there's been something bad that isn't a function of wider market conditions. So it was overdue in my opinion. However, it's unfortunate it was on new management's watch. The one off hit is unfortunate, but I feel as a retail punter completely uninformed on the entire situation. How did it happen, when did it happen, what can be done to make sure it doesn't happen again, what is the underlying cost / disruption to the business, why when the number was potentially so material and there was no range in the market was trading in the stock allowed to continue while new information was coming out live from a US court case (fine if it was a closed doors case but tbc). Until mgmt provide sufficient information then it's difficult to have a view on future prospects under the new guard. Info please...

[r2oo] 12/4/2022 13:02

I agree and as a result I have sold out my holding for a 70 percent gain.Did want to hold this for the long term but a £40 million damages payment when the profit was only 29m last year does not bode well for sentiment going forward.Also with the current PE at 30 this is ready for a big fall in my opinion.As mentioned by another poster 40m is probably just the base cost of this problem once you factor in legal fees for both XP and Comet it'll probably be more like £65 to £70m all told.Such a shame as I had this in my portfolio for the long haul.

[mjneish] 30/3/2022 14:16

This is probably naive, but how does this work? They pay compensation in full and they cover it with a loan that is gradually repaid? So, say spread out over ten years and then profits will take a hit of roughly 10% per year? Or better just to take it on the chin all at once and move on?

[don carter] 28/3/2022 16:00

Whatever happens, this is going to take time to resolve....

[suetballs] 25/3/2022 09:47

sp fairly stable atm - but as mentioned above what about ongoing disruption regards the disputed technology and there could be reputational damage too.
Suet

[cockerhoop] 24/3/2022 09:40

The RNS fails to mention Comets costs or any ongoing disruption regards the disputed technology in XPP products.

[redartbmud] 24/3/2022 09:17

It has wiped out a year's profits and will seriously impact cash balances.
Thay has spent £10m on court fees when they reported. Another round in a coust that will always find against a UK listed company might be throwing more cash down the drain.

They will probably have to stop the dividend for a year or so, but the greater concern is how the customers will react.