Iqe Share Discussion Threads

[mirabeau] 25/3/2017 08:41

Micron jumps to highest level in more than two years

Micron shares surge after it swings back to profit

Jessica Dye and Pan Kwan Yuk in New York

Micron Technologies saw its shares climb to their highest level in two years after the semiconductor maker reported a strong quarter of sales and profit and signalled that the good times would continue to roll.

The stock was one of the day’s biggest gainers, rising 7.4 per cent to $28.43.

Strong demand and rising prices helped Micron deliver a 58 per cent jump in revenue to $4.65bn in the three months to March 2, in line with what analysts surveyed by Bloomberg had expected.

Net income attributable to Micron shareholders was $894m, or 77 cents per diluted share, versus the net loss of $97m, or 9 cents a share recorded in the prior-year period.

Mark Durcan, chief executive, credited the fiscal second-quarter results to “strong demand and limited industry supply” for its DRAM and NAND memory chips, as well as ongoing cost-cutting efforts.

As a result, the company is predicting a significantly stronger third quarter with revenue forecast to come in at between $5.2bn-$5.6bn and earnings per share to be between $1.43-$1.57.

The upper end of the guidance implies a 93 per cent jump in revenue growth compared with the third quarter of last year, when it booked a loss of 21 cents on revenue of $2.9bn.

The figures blew out current market consensus estimates, which see revenue of $4.79bn and earnings of 94 cents a share for the third quarter.

The bullish forecast from Micron had also lifted shares of other chipmakers on Friday with the wider Philadelphia Semiconductor index up 0.8 per cent for the day.

Micron’s guidance for the May quarter is “one of the biggest guidance beats we have seen in semis since Nvidia’s big beat in its October 2016 quarter”, said Stephen Chin, analyst at UBS.

However, Mr Chin cautioned that the current upcycle might not be sustainable.

“One risk to monitor is our global team’s view of some near term supply risk, assuming Samsung adds 40k wafers per month of DRAM capacity this year. If we see more DRAM capacity than this, we could need to reconsider our estimates,” he said.

At the other end of the scorecard, GameStop plunged 13.6 per cent to $20.70 after the video games retailer issued another disappointing quarter of sales and earnings.

Elsewhere, equity investors appeared to be in sanguine mood on concerns the Trump administration will not be able to push through its healthcare reform after the House’s vote on the bill was cancelled on Friday.

The Dow Jones Industrial Average fell 0.3 per cent to 20,596.72 while the S&P 500 lost 0.1 per at 2,351.7. The Nasdaq gained 0.2 per cent to 5,828.74.

[poombear] 25/3/2017 08:35

This backs up the Nanoimprint opportunity mentioned yesterday.

[d1nga] 24/3/2017 19:07

Quick question if I may , who would our comparator be listed on the nasdaq?

[sheep_herder] 24/3/2017 19:02

I posted on the old thread about DBR lasers which are very similar to DFB ones. cREO can be used to drastically reduce the number of layers needed to manufacture these structures.

Edit: this app note from Translucent is a useful primer:

[aimingupward2] 24/3/2017 18:18

In that note N+1 Singer have quite conservative growth forecasts, but they also say that there are 'multiple opportunities, short to medium term, with the potential to provide material upgrades.' So, pleasant news to look forward to.

[pugugly] 24/3/2017 17:59

poombear - Thanks -

[poombear] 24/3/2017 17:40

N1+Singer note

Register here and can download.

[pugugly] 24/3/2017 17:37

poombear: Source please ?

[poombear] 24/3/2017 16:43

This is something I wasn't aware of.

Full service DFB lasers Indium Phosphide (InP) technology makes up c.50% of IQE’s current Photonics revenue. The majority of this is sales of Distributed Feedback (DFB) lasers. IQE has developed Nanoimprint Lithography (NIL) technology which will allow the group to complete the DFB laser fabrication process in house. Selling “full service” lasers is likely to deliver a 2-3x uplift in value to IQE. We understand that the value uplift will also come at a higher margin as the NIL process does not add a significant amount of cost. Management believes that the majority of the group’s DFB laser sales will transition to full service laser sales. We estimate that this could add an extra £10 - £20m of high margin revenue to the group. At the higher end this is almost equal to total Photonics wafer revenue in FY’16

[rogerrail] 24/3/2017 16:42

Apologies as O/T but if any fellow IQE holders are thinking on reinvesting some of their gains in another "unloved under the radar" share , you could do worse than taking a look at HAYT.

In short, a hole in the order pipeline which is quickly being corrected together with a misjudgment by the CEO in dealing with a relatively moderate short term credit facility, has lead to the share price bombing. We are all human and even Drew has made mistakes but now come good, look at he investment in SJ, so one can forgive this when decent profits are in sight. As always DYOR and there is no guarantee the share price wont drift further.

I wont mention it again!

[rogerrail] 24/3/2017 16:31

As I pointed out before, the Capex spend tells the story, a manufacturer this size would not have spent £19.1m if it was not backed by a secured revenue stream , and in that respect the iphone8 is the the most likely cause, as has been indicated, the margins on VCELS are lucrative.



"anyway I think the numbers are incredibly exciting…..a good enough bet that we are spending a lot of money on facility expansion. We're spending money to hire people…' and he went on to say 'finally we are adding capacity over the next couple of quarters in our VCSEL laser FAB in Allen, Texas. This will enable us to pursue several new consumer applications for 3D sensing."

no doubt a share that was for along time under the radar and generally unloved is starting to get exposure stateside, hence the share price rise.

[twatcher] 24/3/2017 16:10

...never heard of it..... ;)

[hexode] 24/3/2017 16:10

This has always been an exciting stock. Can remember buying at £1.00 and selling at £1.95 during the dot com boom back in 2001. Does any body remember Video Logic now Imagination Technology; another roller coaster. Buy on the crashes and sell on the highs. Sold a little of my substantial holding in IQE today. Leave it for a year and have another look. Its great trading with a stock that stands in at zero in your portfolio. Patience is the name of the game.

[richardc77] 24/3/2017 15:39

The great thing for me is, despite this magnificent share price rise the P/E is still very reasonable (low for a tech company with growth story). Even Unilever has a P/E of 25...

[lucas5950] 24/3/2017 15:24

wow so the share price has done exceptionally well. I didn't think it would on the results but i was wrong. Well done to those who stayed in.

[yump] 24/3/2017 15:08

Monty9

Pi's are fickle and I can't see that changing any time soon. It may be that suddenly everyone started to like IQE all at once, having all thought it was a dog when the share price was depressed - rampant enthusiasm does happen, but this is one heck of a lot of money - its not a little stock being pumped.

Tend to agree with you that the rise is evidence of stake building. If there are a few parties involved, the 3% wouldn't necessarily be crossed to warrant RNS's. Stakebuilding might not of course be by a potential acquirer. Funds have been known to build, on the basis that an actual bid might appear.

The company has not changed that much, so something else has.

Its possible of course, that the price was deliberately being depressed previously to give an opportunity for stake-building. People who don't think that happens must be the same folk who leave their doors open for burglars.

[deepe] 24/3/2017 14:21

60p achieved. Maybe it is just Ennismore desperately trying to cover their short.

[mirabeau] 24/3/2017 14:15

The order book is stonking:

799k (50) v 279k (18)

[poombear] 24/3/2017 14:12

I would recommend anyone who hasn't, to sign up to research tree and read the 7 page note from N1+Singer especially page 4. It's free to register btw.

[someuwin] 24/3/2017 14:06

Excellent moves.

[mirabeau] 24/3/2017 14:01

Is this a takeover?

[twatcher] 24/3/2017 14:00

Dave,
"FWIW Have now raised my MINIMUM PRICE TO sell a single share from 65p to 75p, chart shows we have clear skies to 65p"

The chart shows clear sky, period. Other than the beginning of the week, the share price hasn't been north of 50p for 15+ year.

[sweenoid] 24/3/2017 11:43

couldn't resist posting this link courtesy of JamesRowe on the IMG board, commentry is me.

ANYTHING that increases the complexity of smartphones and increases differentiation and innovation is majorly good news for IQE, as it increases the demand for compound semiconductor materials ( which is what we do).

The big daddy that will really push out the BOM (bill of materials for OEM's) and hence IQE profits will be AR (Augmented reality- VR- virtual reality is important too but nowhere as big as AR.

Now where Apple go, everyone else follows so this is nice



whatever Apple comes up with in the next iteration of iPhone has simply got to be a step-change in innovation , simple minor upgrade cycles will not suffice, this is very good news for us indeed- whatever it is ;-)

Have a good weekend
S

[grity] 24/3/2017 10:43

This is going to a £ by year end at this rate ,
Not even thinking of selling this ones a KEEPER
As the good Dr said .
Sheepy you keep saying come back in 10 years
What's your target by then?