tag:blogger.com,1999:blog-6443862031662825789.post3837424767545136586..comments2023-10-09T18:02:34.790+01:00Comments on Paul Scott's UK Small Caps: Weds 31 Oct - TRCS, IND, SPA, VLX, LOQ, SPAPaul Scotthttp://www.blogger.com/profile/13081674666652796786noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-6443862031662825789.post-55511991681043850012012-11-01T22:07:14.437+00:002012-11-01T22:07:14.437+00:00well, don't look at me for content!
but about...well, don't look at me for content! <br />but about Volex: I just thought it was interesting - probably obvious too - that a company sitting right next to Apple, making very visible components, one of which i can see on the floor right next to me, can have no branding power and these small and vulnerable profit margins. the report said the last half year was 250m revenue, down from 270 [down 8%]. but profits 5m down from 15m [down 66%]. & which is before >5m earmarked for restructuring costs to come. It reckons on emerging from the bog towards the end of next year. I think of commodity firms as these slow beasts which can spend loads on a production line, but know it'll be good for many years, and wonder if Volex gets the worst of both worlds.<br /><br />K.A.<br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6443862031662825789.post-64069172758745342382012-11-01T13:21:08.079+00:002012-11-01T13:21:08.079+00:00Hi HH,
I'd consider articles for publication ...Hi HH,<br /><br />I'd consider articles for publication if they present a strong & rational case for a share being good value.<br />However, it would need to be in the context of the sectors that this website covers (see here http://paulypilot.blogspot.co.uk/p/what-sectors.html )<br /><br />So unfortunately that excludes resource sector shares.<br /><br />Re Volex - there's an article about it in Investors Chronicle which is interesting - they've lost a major customer (APPLE);<br />http://www.investorschronicle.co.uk/2012/11/01/shares/news-and-analysis/volex-unplugged-by-apple-cIF40BFClrRsNdHEwzXD9N/article.html;jsessionid=D148E7632156683778F0CB6846354D55.mps-apr-01-8104<br /><br />Regards, Paul.Paul Scotthttps://www.blogger.com/profile/13081674666652796786noreply@blogger.comtag:blogger.com,1999:blog-6443862031662825789.post-28665832299762989822012-11-01T13:13:08.539+00:002012-11-01T13:13:08.539+00:00Can people submit write ups on any company?
I woul...Can people submit write ups on any company?<br />I would like to try my luck on isable oil<br />and mining companies. I believe in state<br />the facts and calculate the figures. It <br />could complement your retail writeup.<br /><br />ref volex I believe people should sit on<br />sidelines and wait for clearer signal. Similar<br />to Tni really and both may drift gently lower.<br /><br />HHAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-6443862031662825789.post-43851269226044277222012-11-01T07:15:03.044+00:002012-11-01T07:15:03.044+00:00Indigovision Oct news letter Turnover 30m profit o...Indigovision Oct news letter Turnover 30m profit over 2mCraignoreply@blogger.comtag:blogger.com,1999:blog-6443862031662825789.post-39402460527618750392012-11-01T00:33:03.593+00:002012-11-01T00:33:03.593+00:00and indeed it would be nice to build up a team of ...and indeed it would be nice to build up a team of guest writers I think.Paul Scotthttps://www.blogger.com/profile/13081674666652796786noreply@blogger.comtag:blogger.com,1999:blog-6443862031662825789.post-77900927990122797572012-11-01T00:32:39.068+00:002012-11-01T00:32:39.068+00:00Hi King Arthur! That picture of Scargill really di...Hi King Arthur! That picture of Scargill really disturbs me by the way LOL!<br /><br />Yes, you are right. Cables are completely a commodity, but nothing wrong in that. If you can consistently make 2-3% profit because you are more efficient than anyone else, then you have the market to yourself.<br /><br />I have no idea whether Volex are there nor not, but the PER of 6 seems to be supported by their outlook statement today (I always refer to FORWARD PERs, never historical ones, if that possibly caused confusion?).<br /><br />I'm not going to have time to look at Volex, realistically, just too busy. But would love to see some good research on it, so anyone who has the time & inclincation is welcome to write a piece, and if I think it's good enough, I will consider publishing it here attributed of course, to a guest writer. Never been done before, but why not? I can't do everything myself!<br /><br />Cheers, Paul.Paul Scotthttps://www.blogger.com/profile/13081674666652796786noreply@blogger.comtag:blogger.com,1999:blog-6443862031662825789.post-16722211415292856592012-11-01T00:04:20.858+00:002012-11-01T00:04:20.858+00:00i'd be interested to hear your views on volex....i'd be interested to hear your views on volex. <br /><br />my question is, Is cabling a commodity? i think the conventional wisdom is to look out for widget manufacturers - think plastics capital - as the opposite of commodity processors. Niche widget makers. There's obviously a lot of skill and technology in cables, transformers, etc, and setting up the plant to make them, but the market is so huge they can't help but become commodified. is that so? <br /><br />and then bung in rapid technological change.. but i see the low p/e and general good track record...Anonymoushttps://www.blogger.com/profile/03310370834892951590noreply@blogger.comtag:blogger.com,1999:blog-6443862031662825789.post-84329938147929826272012-10-31T14:24:56.853+00:002012-10-31T14:24:56.853+00:00Excellent comments, thanks marlint111.
A broker I...Excellent comments, thanks marlint111.<br /><br />A broker I respect, at Equity Development, who Tweets as @equity_research has today been to mgt meeting with Tracsis, and has Tweeted positive comments about it. Worth a look.<br /><br />You could well be right on this one. I just can't bring myself to buy after such a strong bull run! Thanks for your input, appreciated.<br /><br />Cheers, Paul.Paul Scotthttps://www.blogger.com/profile/13081674666652796786noreply@blogger.comtag:blogger.com,1999:blog-6443862031662825789.post-53267166394462754332012-10-31T13:55:27.035+00:002012-10-31T13:55:27.035+00:00Paul,
Thanks for the comment on Tracsis. I've...Paul,<br /><br />Thanks for the comment on Tracsis. I've been a holder here for a while, and its always nice to see someone as respected as you give them a once over.<br /><br />As you say- the risk is always that the profits dry up at some point in future, they run out of people to sell to.<br /><br />However management seem optimistic (suggest that without acquisitions we should see the same rate of organic growth as last year- around 40%). This would gives prospective EPS of around 14p, and thus forward P/E of 10. I'm not adding more at this point, but I don't feel it's got too expensive yet.<br /><br />One thing that you allude to is the management. They've successfully grown the company rapidly, while maintaining great cashflow, a rock solid balance sheet, and great sales growth. In addition they have a habit of under-promising and over-delivering.<br /><br />Directors own a fair bit of the company, and there's been a recent director buy at 130ish p.<br /><br />I've got a feeling the next year will be about international growth (currently 3% of revenues I think). <br /><br />Anonymoushttps://www.blogger.com/profile/18374379465417740764noreply@blogger.com