Regency View:

TAKE PROFITS Volex (VLX)

Close Volex (VLX) at market 564p

Volex has been a strong performer for AIM Investor, with the shares delivering a powerful move higher driven by consistent execution, earnings growth and a clear strategic direction under management. The business has continued to scale revenues, maintain solid returns on capital and benefit from exposure to structural growth areas such as electrification and data infrastructure. More recently, momentum has accelerated sharply, with the shares pushing to new highs, supported by increased trading volumes and positive news flow, including the planned move to the Main Market and a £40m share buyback programme. This is a company that has steadily built credibility with the market, and that has been reflected in the share price.

That said, much of this progress is now reflected in the valuation. The shares are trading at their highs, momentum remains strong and sentiment is clearly positive ahead of the Main Market transition, which often acts as a catalyst for re-rating. However, with earnings growth expected to moderate and the stock now well above its longer-term averages, the risk-reward becomes less compelling from here. Taking profits at this stage is about recognising that the move has played out and that expectations are now higher, leaving less room for upside surprises. After a strong run, this feels like a sensible point to lock in gains while keeping Volex on the watchlist for the next opportunity.

Profit = 81% (excluding dividends)

VLX Daily Candle Chart