No updates yet but expecting one any time. Looks way too cheap on a forward P/E of just 8.6 for 2011 and 6.6 for 2012.

Volex Group PLC

FORECASTS 2011 2012
Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Edison Investment Research
19-05-10 None 11.91 15.70 14.91 19.70

The Royal Bank of Scotland NV [R]
04-05-10 BUY 11.61 13.63

Charles Stanley Securities
20-04-10 BUY 12.60 17.63 17.00 23.33

Milkstone Ltd [R]
15-04-10 BUY 13.01 15.47

2011 2012
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Consensus 12.23 16.58 0.00 15.86 21.36 0.00

1 Month Change -0.37 1.11 -1.13 -1.97
3 Month Change -0.16 1.93 0.00 -1.13 -1.97


GROWTH
2010 (A) 2011 (E) 2012 (E)

Norm. EPS 31.41% 14.77% 28.81%
DPS % % %

INVESTMENT RATIOS
2010 (A) 2011 (E) 2012 (E)

EBITDA m 17.13m 20.14m

EBIT m m m

Dividend Yield 0.00% % %

Dividend Cover x x x

PER 9.86x 8.60x 6.67x

PEG 0.31f 0.58f 0.23f

Net Asset Value PS p 29.53p 52.55p

Fantastic results from VLX.......

http://moneyam.uk-wire.com/cgi-bin/articles/201107250700089331K.html

http://www.iii.co.uk/articles/16392/stock-watch-volex

Stock to Watch: Volex
Tue, 26/07/2011 - 00:00 | Edmond Jackson

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Strong revenue growth continues at Volex (VLX), the global provider of electrical and optical connecting solutions, which derives just over half its sales from Asia - serving various technology providers.

Its latest Interim Management Statement (IMS) cites like-for-like normalised revenue up 10% for the 16 week period to 25 July, a firm gross margin of 19.0% leading to a 21% rise in operating profit to 4.1 million.

Adverse currency translation clipped the reported revenue/profit rises to 2% and 3% respectively but in underlying terms this is impressive growth in challenged times. It is broad based across four sectors - consumer, telecom/datacom, healthcare and industrial - and could have shown 12% revenue growth excepting delays in the recovery of an Indian business.

This affirms continued success with a recent restructuring after Volex reported a 64% rise in operating profit on revenue up 38% and earnings per share up 130%, in prelim results to 4 April, announced early June. Now Volex is better positioned, it should be worth watching for further progress.

It also shows how "small cap share" does not necessarily mean a high-risk investment: Volex has withstood the downturn relatively well, with normalised pre-tax profit slipping only slightly from 5.1 million to 4.8 million over 2007-08, otherwise profit and earnings per share grew strongly to 10 million and 14.5p by 2010. Management says it continues to improve the sales mix with new products also efficiencies towards improving the margin.

Company REFS shows recent broker projections for about 18 million normalised pre-tax profit and earnings per share of 24p in the current financial year to 1 April 2012, rising to about 23 million and 30p respectively in 2012/13. The main risk factor looks to be general fears of a double-dip recession although management appears to have sufficient visibility of orders to assert in the IMS it is confident of meeting market forecasts for the current year.

With consumer products representing nearly two-thirds of revenue and profit, growth in internet-connected TV, living-room gaming consoles, tablet computers and smart phones are key drivers helping withstand recession. As was the experience of the early 1990s recession, it is possible for a few companies to stand out when they are geared to a technology watershed especially. It helps explain Volex's 41% increase in revenue to 196 million for its consumer products side in the last financial year, although industrial also did very well to double its revenue to 22 million.

Top-line progress like this really classes Volex as a growth share although the market is likely to be wary of cyclicality in electrical components/connectors (as we have seen with Premier Farnell (PFL) and Electrocomponents (ECM)) - which most likely explains the modest, forward price-earnings multiple of about 13 times falling to 10.5, with the shares currently at 320p.

Edmond covered the fortunes of Premier Farnell in a recent Stock to Watch.

Volex's financial track record and forecasted earnings growth also qualify the shares for the price-earnings to growth - or PEG - factor, which works out at an appealing 0.4 times. Generally with growth shares, a ratio less than one is considered attractive. It appears the company is benefiting "top-down" from this growth trend in consumer electromics, and "bottom-up" from a restructuring last year - to achieve a more streamlined business according to market sector and functional lines.

"We can now implement coherent, global strategies that cross geographical boundaries," management said on completion a year ago.

So it is quite ironic how the share price chart shows a roller-coaster ride - from 206p in 2007, below 100p at end-2008 with the financial crisis, then a strong recovery to 377p by end-2010. It would appear the market's fear of "small cap cyclical" was more irrational than justified by fundamentals, although lots of good shares were hard hit in the 2008 downturn.

Rising input costs as raw material prices go up, are another factor to watch. Copper is particularly significant for Volex although management has been adept at aligning copper costs in customer and supplier agreements, with hedging of remaining exposure such that the current financial year should be quite protected.

For more on the outlook for copper, read: Copper revival set to continue in second half.

Probably the difficult context for stockmarkets right now, over debt issues, explains Volex's muted response to a strong trading update, the shares rising only about 15p to 320p on small volume. The market is liquid enough to enable trades of 5,000 shares within the market spread, however.

Volex has not made dividend payments in recent years, a factor which may have contributed to share price volatility as you are essentially judging the earnings trend and how it is likely to be rated. Even with an intended payout of 2.0p a share, to be paid soon and marking the resumption of dividends, the prospective yield is negligible. Brokers target 3p to 5p a share in future years however, with substantial cover of about eight times, hence scope to increase.

The balance sheet has only a small element of goodwill/intangibles, the assets are mainly current - inventories and trade receivables - also 12.7 million cash. Borrowing of 17.1 million compare with 23.8 million net assets and a refinancing of bank facilities has helped to slightly improve net debt to 4.6 million; however net assets per share work out only at about 38p so again you need to be confident about earnings.

Overall, the risk-reward profile looks to favour upside, with a return to 350p and better. Volex is well-positioned to key drivers of consumer electronics change and with sensible diversity, now seeing the rewards of its repositioning which should have further to run. While forecasts already assume significant growth over the next 18 months or so, its rating is fundamentally modest - yet should improve to the lower mid teens at least, implying nearer 400p as a medium-term target.

For more information see volex.com.

Overall, the risk-reward profile looks to favour upside, with a return to 350p and better. Volex is well-positioned to key drivers of consumer electronics change and with sensible diversity, now seeing the rewards of its repositioning which should have further to run. While forecasts already assume significant growth over the next 18 months or so, its rating is fundamentally modest - yet should improve to the lower mid teens at least, implying nearer 400p as a medium-term target.

Some over road say they have lost Apple as biggest customer!!.

Not in but interesting to watch how this plays out if the above is correct.

Meanwhile, looking at the small-cap end of the market, Volex is having a dreadful time. The maker of connectors, wiring assemblies and related products saw its shares fall off a cliff in September when the firm issued a profit warning due to an unexpected fall in demand from one of its biggest customers.

Since then the shares have fallen further, reaching a new 163p low today. So what is the future looking like? Well, with ongoing fears that we might not have heard the worst, the firm's forward P/E rating of 7.6 is perhaps understandable. But there's still a very well covered, if modest, dividend of 2.5% expected.

2nd profit warning today... 95p.

StockMarketWire.com
Volex said it has acquired Applied Micro Circuits Corp's active optical technology platform for about $2 million.

Under the agreement, AppliedMicro has agreed to a five-year, non-compete in connection with the marketing and sale of active optical cables, transceivers, modules and related assemblies.

The companies would share ownership of the associated active optical patent portfolio, allowing each company to continue development of the technologies, and forming the basis for the two companies to collaborate on next generation optical interconnect products and solutions.

These look interesting, could they regain their spark.

In the short term the company has hit a rocky patch. Again a risk but the rewards can be huge. The £61 million cap manufactures fibre optic cables and connectivity components for smartphones, tablets, pcs, printers, tvs, etc. Manufactures have delayed and pulled orders amid delays to new device launches. Hence profit warnings
last year. Shares have fallen from 274p to below 100p.

In the short term struggle imply earnings will fall from 26.5p to just 5.7p this year
EPS is anticipated to double to 11.3p in 2014 and than advance to 16.4p the year after. That would take the PE from over 17 to 8.7 and then to a mere six. The sector average PE is 15.5 at this time. So a re-rating to just ten times within the year would target a share price of 160p for a 60% upside. Also a predator could be drawn on this lowly valuation.

Interim Management Statement
RNS
RNS Number : 6408X
Volex PLC
12 February 2013





12 February 2013

VOLEX plc



Interim Management Statement

Volex plc ('Volex' or the 'Group), the global provider of electrical, digital and optical connections, today releases its second Interim Management Statement for FY2013, covering the 19 weeks to 11 February 2013.

Group trading

Trading conditions have remained challenging, as previously reported in our 14 December 2012 update. Despite the background of macro-uncertainty and general softening of demand, we have won new business with a major global technology company. We are making good progress with our restructuring programme. Our sales and finance functions have been strengthened and are more closely aligned with our sectors. Production cost and operating expense savings are being delivered as expected. Accordingly, management expects full year revenue and operating profit* for the year ending 31 March 2013 to be in line with revised market expectations**.

Update on improvement plan

Management is focused on a number of initiatives to improve performance and consequently rebuild shareholder value. These include strengthening the senior sales leadership team and the effectiveness of our sales organisation, executing our cost reduction initiatives and accelerating the Group's move to a higher margin product portfolio. While there is still much to do we have made good progress.

Daniel Abrams joined the Company, as Chief Financial Officer on 17 December 2012. We have reorganised the sales and finance functions to better serve key accounts, improve alignment with our sectors, and strengthen our forecasting processes. We have also appointed Roger Wendelken as Senior Vice President, Sales and Marketing. Most recently Roger was SVP Worldwide Sales at SMSC prior to its acquisition by Microchip and he has also held senior sales roles at Applied Micro Circuits Corporation (AMCC), Marvell Semiconductors and IBM.

We are on track to deliver the targeted cost savings of an annualised $10m. We have also increased production efficiency and lowered scrap rates.

On 14 January 2013, the Company successfully completed the acquisition of the active optical technology platform from Applied Micro Circuits Corporation, based in California. The acquisition of a patent portfolio, technology and product designs for active optical cable (AOC) assemblies provides Volex with accelerated entry into the multi-billion dollar AOC and optical transceiver market. It represents a modest yet important step towards developing new technological capabilities to drive higher margin revenue growth.

Financial position

Net debt at 31 December 2012 was $14.8m (31 March 2012: net cash $3.6m).





Outlook

Trading conditions have remained challenging in the early part of 2013. Management expects full year revenue and operating profit* for the year ending 31 March 2013 to be in line with revised market expectations**.

- END -

Gone long. These director buys suggests confidence going forward.

Going like the clappers up over 8%.......NICE.

Thought it would, up just under 12%

Loads err money.

VOLEX

I love GAPS. No resistance until 140p. What a beut. Added again later today.

Another 30k director buy aswel.

Its a giveme.

Volex: Canaccord Genuity reduces target price from 116p to 97p and retains a hold recommendation. ?

Another one of 'those' charts - a bit late to the game here and my limit didn't get hit, so I'm still watching.

Closed up 15.46% :-))

Off to a flyer. Sold 1/2 at 120p waiting to get back in and buy. reckon anytime now.