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

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.

Sod it!

Did you miss the pullback skinny?.

Yes - I'll keep an eye for now.

Still think youve got plenty of time. Another massive gap after 1st one. 140p SP target first up.

My second one is a spread bet.

http://www.ft.com/cms/s/0/2ad23294-4847-11e2-a1c0-00144feab49a.html#axzz2LG4Uwstj

Industrial takeovers on the cards for 2013


Michael O’Brien, analyst at Canaccord Genuity, believes that competitors with stronger balance sheets could be tempted to bid. “Volex’s strong market position in the sectors in which it operates, opportunities to diversify out of consumer, and concentrated shareholder base in our view makes it vulnerable to take-out,” he says.

Most brokers got a hold on the stock.

But the forward P/E of just over 9 to
2014 gives a clue that Directors know something
not yet out in the public domain.

Looks far too cheap.

Volex PLC

FORECASTS 2013 2014
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

N+1 Singer
18-02-13 HOLD 4.77 4.90 3.22 9.47 11.40 3.54
Canaccord Genuity Ltd
18-02-13 HOLD 4.64 6.44 8.70 12.88
FinnCap
12-02-13 HOLD 5.11 5.24 3.19 6.00 7.21 3.83
Milkstone Ltd
05-02-13 HOLD 7.37 9.66 4.76 7.75 11.88 5.72
Investec Securities [W]
28-01-13 HOLD 17.35 26.14 2.77 5.11 6.99 3.08
Peel Hunt [W]
17-12-12 HOLD 13.73 19.18 4.37 19.34 26.58 5.62
Charles Stanley Securities
31-10-12 UREV 19.59 17.72 1.93 22.32 20.19 2.28
Edison Investment Research
05-07-12 None 22.71 32.55 3.21 26.41 37.17 3.53

2013 2014
Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Consensus 5.44 6.51 3.00 8.00 12.06 3.45
1 Month Change -2.64 -4.07 0.07 -2.89 -4.11 -0.02
3 Month Change -8.62 -11.75 -0.71 -13.43 -15.86 -0.97

Notes to forecasts
(18 Sep 2012) W flag refers to outlook


GROWTH
2012 (A) 2013 (E) 2014 (E)

Norm. EPS 35.13% -72.64% 85.20%
DPS % 35.50% 15.22%

INVESTMENT RATIOS
2012 (A) 2013 (E) 2014 (E)

EBITDA £19.83m £12.58m £17.93m
EBIT £17.57m £7.73m £11.27m
Dividend Yield 1.97% 2.68% 3.08%
Dividend Cover 10.77x 2.17x 3.49x
PER 4.70x 17.20x 9.29x
PEG 0.13f -0.24f 0.11f
Net Asset Value PS 41.66p 48.64p 53.94p

Max quantity that Selftrade will offer at the moment is 1000 shares. Anyone know if these are historically difficult to trade or just a temporary glitch?

Difficult Harry. Best get them in tranches.

Thanks, so presumably difficult to offload as well?