Alphawave Ip Share Discussion Threads

[scepticalinvestor] 08/7/2021 11:08

Not the time to sell - this is going to the 400s

[scepticalinvestor] 07/7/2021 16:39

Ppl starting to take notice

[cordwainer] 07/7/2021 15:20

Targets:
Liberum..... 420p (as per post 139 by 74tom)
JP Morgan... 450p (as per post 158 by Bookish)
Barclays.... 475p (as per post 154 by Bookish + see below.. I dont think this article/info was posted at the time)


23 June 2021

Alphawave's share price could double as data centre market grows, says Barclays

The bank predicted that the computer chip maker will see a revenue CAGR of 62% between 2020 and 2025 as it gained share in the market

Alphawave IP Group PLC - Alphawave's share price could double as data centre market grows, says Barclays. Alphawave IP Group PLC’s (LON:AWE) share price could potentially double thanks to its “unique position within the rapidly expanding data centre space”, according to analysts at Barclays.

In a note on Wednesday initiating coverage of the computer chip maker with an ‘overweight’ rating and 475p target price, the bank said the growth of the sector was “driving sales and profit growth faster” than anything else in their coverage, adding that they expected the firm to “gain share within this growth market as its chipmaker customers shift from proprietary to Alphawave designs”.

“We forecast Alphawave to grow revenue organically by 62% [compound annual growth rate from] 2020-25, with EBITDA margins expanding from c50% to the mid-60%s, thereby delivering 70% CAGR in EBITDA”, Barclays said.

We think such growth warrants a premium valuation, but at current levels it only trades at the low end of peers… We think it reasonable for Alphawave to trade at least at a slight premium to much slower-growing peers”, the bank added.

Barclays said that should all of the company’s growth drivers hit, the share price could “near-double” to 650p.

Shares in Alphawave rose 0.8% to 340.6p in mid-morning trading.

[scepticalinvestor] 07/7/2021 09:23

Exactly - it is the mms dropping the bid to scare weak holders or hit stops I reckon. Shorters would be brave to increase imo

[andyview] 07/7/2021 09:20

I keep adding here, although everyday I'm surprised at how wide they open the spread !

gla

[scepticalinvestor] 07/7/2021 09:18

MMs trying to get cheap shares

[scepticalinvestor] 07/7/2021 09:13

Not far off IPO price now - at current momentum, will see 500 very soon

[scepticalinvestor] 01/7/2021 13:39

Frogs are trying really hard to push this down

[scepticalinvestor] 01/7/2021 08:29

Good grief, my biggest riser this month so far - 289 to 360 odd

[cordwainer] 30/6/2021 16:45

tbh i was pretty sure about that when i bought in on 26 May.

[horgan] 30/6/2021 16:30

Ah ha! Yes, I think you may have hit the nail on the head. So, my EPS figure I'm seeing is incorrectly dividing earnings by the number of shares that existed prior to the IPO, rather than the much higher number that now exist. I think it must be something along those lines. Thank you!

[cordwainer] 30/6/2021 16:07

@horgan, i don't know remember the source material well off the top of my head, but could it be that the 118 cents per share is a pre-IPO basis ?

[horgan] 30/6/2021 15:18

I'm not discussing whether I think it's a good buy or not, I'm just asking a question. Hoping someone with accounting knowledge can answer if for me. Clearly not you, but thanks for the tip.

[stallone10] 30/6/2021 15:12

Horgan if you basing buying decisions based on value you would never have bought ARM or Amazon or Tesla.
This is a growth stock growing at 50 per cent a year.

[horgan] 30/6/2021 15:08

The forecast EBIT isn't very different from the forecast pre tax profit. The problem is that forecast profit, (whether EBIT or pretax) is around 50m dollars. If you divide that by the number of shares in issue (665m shares), you get earnings per share of 7.5 cents per share. However, EPS forecast is showing as 118 cents per share. Which is right? I just don't get it.

[stallone10] 30/6/2021 14:48

Yeah I’m with you but like I said it’s meaningless look at growth

[scepticalinvestor] 30/6/2021 14:43

Forcast ebit?

[horgan] 30/6/2021 14:40

Thanks but that's not what I was asking. The market cap divided by the profit should be very similar to the EPS divided by the share price. It's just a different way of calculating the same thing. However, with this company, the answers are wildly different. So, something is incorrect or there's something I've missed.

[stallone10] 30/6/2021 14:20

I would not worry about 2.5 billion valuation
We are in the fast growth stage where it’s meaningless.
NVADIA worth 500 billion US dollars approx.

[horgan] 30/6/2021 08:12

Can anyone help? Usually Market Cap divided Pre-tax Profit is a similar number to the PE ratio. However, with AWE, Market Cap divided by forecast Pre-Tax Profit is ~44 (very expensive) but forecast PE ratio is ~3 (very cheap). Why is the profit so low compared to EPS? Just doesn't tie up. I'm sure there's a reason but I don't understand. Many thanks.

[scepticalinvestor] 29/6/2021 16:35

lovely finish

[scepticalinvestor] 29/6/2021 13:43

good man.the days of 310 or below are over it seems. substantial, large buys coming in. def ripe for a rise to the 370s imo

[maytrees] 29/6/2021 13:27

The MMs still seem very careful to keep the bid share price just below profit for many possibly because shorters still in background. Anyway I am back in.

[scepticalinvestor] 28/6/2021 16:00

Always drops at the end of the day it seems. Too many idiot day traders selling at a loss

[tscole70] 24/6/2021 16:39

Bit if top up today. Thinking of building up a sizeable stake in this for my SIPP as long term looks a sound investment