Volex half year update(12th of Nov)

Generally good update. The business is doing well in a challenging environment, but the fact that they have production facilities in multiple countries helps a lot with the tariff malarkey. None the less, I sold about 1/3 of my shares on the day, as usually Volex rallies strongly on results and then sells off(I am intending to bring back the position over the coming weeks). While the market thought the results were great, I was a bit worried that a) the consumer electricals are struggling due to Chinese competitors entering the EU market(due to US tariffs) b) while data centres are growing amazingly, I worry that this would come to an end fairly soon and c) the off highway had a good period, however a few times they mentioned that there was a significant one off customer contract(it is not entirely clear the value of that contract). So I suspect there might be some softening in the numbers next time around. Still a long term holding, but will build back if weakness appears below the 418 levels that I sold at(ideally below £4).

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