Volex (#VLX / $VLX.L) - 351p

A "Picks & Shovels" play on increasing electrification and proliferation of electronic devices, with high quality & well-aligned management, at a reasonable valuation.

Insider Ideas - Volex Plc - MCap £600m (EV £695m) @ 333p
Volex designs and manufactures a broad range of power cords, plugs, connectors, wire harnesses, copper interconnect and data-transfer cables. 

These are used in applications including laptops, PCs, tablets, printers, TVs, games consoles, power tools, kitchen appliances, electric and autonomous vehicles, off-highway vehicles, and data centre related equipment. 

The company seems well placed to benefit from increasing electrification of the products that we use daily, and the proliferation of new electronic device categories. 

c12.5x P/E seems attractive for this acquisition-augmented growth story with heavily aligned long-term owner management.

We have no strong feeling on where we are in the macro economic cycle but we appreciate risks that macro could get worse before it gets better and the performance of Volex is likely to be affected by that cycle.

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