Iqe Share Discussion Threads

[wigoyle] 22/6/2021 23:40

MBO - Management By Objectives? Excellent idea!

[desperate dan] 22/6/2021 23:34

boboty, Give it up for goodness sakes. When, as in post 35360 you are using terms in brackets such as "presumably" and "I would have thought" you are seriously peeing into the wind. Outside of that, a truly excellent post by Aphrodites in 35349 (about the potential for a MBO). I have thought the same for quite some time. As you quite rightly say, all the indicators are there. Coupled with Dr. Nelson's personal and family interests in the "cluster", the nest feathering implications are almost impossible to ignore.

[biglad1] 22/6/2021 23:01

Anybody know how to get into AGM web cast. Without srn number?

[lord loads of lolly] 22/6/2021 22:53

boboty - I suspect it’s more a question of management having no earnings visibility for H2 yet. That’s been one of the problems here recently - a dearth of news, meaning investors have to second-guess outcomes for lack of any reliable medium term guidance. And as we all know, if there’s one thing markets hate it’s uncertainty.

[lpavlou] 22/6/2021 22:06

They know the figures for H1 as there is only a week left for the period. They always provide an update before the AGM and it's going to be very odd taking questions from shareholders in the vacuum of not knowing what happened in H1. The only reason for the delay if it's not the figures themselves is they might be close to announcing the new CEO.

[boboty] 22/6/2021 21:11

Really! Why?

[lpavlou] 22/6/2021 21:04

If they don't announce the TU tomorrow before the AGM, then it can't be good news.

[boboty] 22/6/2021 20:36

Because Iqe said only 1st half would be flat then the growth would continue as before (presumably) if not then Iqe would say flat for whole year ( I would have thought). We should have more info tomorrow

[guildedge] 22/6/2021 20:24

Edison have sales shrinking to 175m for the year. Why do you think H2 sales will grow by 30%? Pound is higher than it was H1 2020 meaning lower converted dollar to pound sales from the US. Really not sure how much swiggle room they have on margins. Edison predicting 185M for next year. Why would they suggest that if sales are to grow so hugely? You are assuming they have any spare capcity to increasure revenue 30% in H2? Otherwise why would they spend £7m on new tools? These tools will take 5-6 months to set up. I doubt those 7 tools would be enough for a 10% increase let alone 30%. Overall if they were expecting 30% growth here the share price would not be 46p. It's one of the reason 140p was assumed a few years back. As it assumed 40% yearly growth with profits to follow. Overall if what you suggest is right you should be buying heavily here. I have my doubts based on the past and above. Find out soon enough.

[boboty] 22/6/2021 17:36

Yes the margin needs to be higher but i think I'm right in saying it more than doubled and if it does so again we'll then we are really in business. 20% of 179Million for operating profit is not such a small number - that's why they could pay down so much debt. Let's say they have a flat 1st half so no growth - sales of about 90Million and improve margin to say 25% and the second half sales continues to grow as before at 30% so second half sales of 120Million then if second half margin is also at 25%the cash flow from sales or contribution to other costs becomes about 52Million. That's not bad for a growing company only worth 300Million. Margins should be about 40% and I can't see any reason with their current strategy as a material specialist and with the rip portfolio profits should almost double again

[dave_spencer] 22/6/2021 16:39

boboty - Still talking meaningless percentages. All I can say is good luck with your reasoning. 20% of sweet nothing is still nothing !! If you think that IQE is printing money then fill yer boots. I agree that they are printing money but only for the select few starting with a certain Dr Nelson !!

[lord loads of lolly] 22/6/2021 16:23

boboty - I hope you're right. Trouble is, IQE always seems to find some reason to make "extraordinary adjustments" to their accounts. Sometimes, this might make the current picture look worse than it actually is, as you suggest in terms of depreciation. But often, they've done it to give a temporary - and largely illusory - boost to profits. Either way, it all looks a bit smoke & mirrors to your average investor and does little to engender confidence and trust. All of which, as I said before, is why we are where we are share price wise. Here's hoping for a better year.

[boboty] 22/6/2021 16:00

Yes - the results in the last audited accounts were just as expected and show Iqe had come back from the year before. The last two sets of accounts tell a story of growth in sales and and increase in operating margins 30 and 20% respectively. I urge everyone to read the accounts because the selective numbers bandied about on here don't tell true story. For example the reason almost 20Million of debt was paid back last year with a loss of 2Million shown on the Unadjusted p&l was because Iqe is charging a massive depreciation charge of on all of the capital equipment it has been installing . So actually Iqe is printing money even without growth and any more improvement in Margins. In my humble opinion we are about to see an adjustment in investor sentiment. Away from doom and gloom to optimism

[lord loads of lolly] 22/6/2021 15:26

boboty - with all due respect, IQE's management has made a pretty good job of "dissing" the company's reputation, without any help from its long-suffering shareholders. Hand on heart, can you honestly say you're proud of the company's recent results? OK, so they increased H1 sales compared to two years ago. But they also trashed the bottom line in the process. Which is why we are where we are share price wise.

[boboty] 22/6/2021 13:43

Are you for real - why don't you wait until tomorrow when you might have some real news - and then give us you view for umpteenth time

[crosswires] 22/6/2021 13:27

Aphro, I would happily accept 80p! My faith in the company is at an all time low, and it would take some very positive comments from them this year to make me believe they can post the multi yoy growth that it would take to really propel the share price were I thought it would be by now.

[boboty] 22/6/2021 12:36

Morning - looks like the doom mongers are out playing tag and trying to squeeze a few more pence out of the share price with their slurs innuendos and half truths. Unfortunately there is no law to stop the practice of buying a short position by initially selling shares you don't own. And then dissing the reputation of a company to suppress the price to then ultimately buy back the shares at a lower price. That's why they do it - because it makes them money. Pick on a share that is fairly illiquid and one where the management doesn't communicate regularly for obvious reasons then make up some characters like crisscross pretend to care and drip feed negative sentiment. There is a law against doing the opposite ie ramping up the price to sell at a high price than you bought.

[piscadela] 22/6/2021 12:30

I was thinking the same, that's why the big investors are not in uproar.

[aphrodites] 22/6/2021 11:56

Has it occurred to anyone that the Board of IQE might possibly be involved in discussions with financial advisors in organising a Management Buy Out? All the hallmarks are there of a Board: (a) not actively focussed in defending the share price. (b) appearing not to careless where the share price goes. (c) deliberately keeping a low key on progress and announcements. It’s hardly encouraging to hear the current MD is standing down but will still stay on the Board. And nearly 9-months later still no news on his replacement. The name of IQE has become an enigma and almost a millstone around its neck. So, what is Dr. Nelson up to? Could a future with his other interests in the CS Cluster merging with IQE and further down the road, renaming a new company to be re-floated on the stock market be on the cards? A Management Buy Out of IQE around the 80p level with the major institutional holders being offered stock in the new unquoted company, with promises of much more attractive things to come, would see this company taken out with little resistance. It would leave the little shareholders stranded high and dry with little concern. It has happened before, and it will happen again.

[dave_spencer] 22/6/2021 08:52

Guildedge - good to see somebody publishing actual figures instead of thoroughly meaningless percentages. Excellent post.

[dexter5] 22/6/2021 08:20

Cross et Al Quite right Stop complaining and move to an investment that you are happy to own

[crosswires] 22/6/2021 07:55

Dexter do you really expect large shareholders to be happy with what they have seen over the past three years? There are some people here who clearly don’t understand the aim of investing to make money. Investing is not about sitting on a bb and posting positive comments when a company underperforms its sector, I find that behaviour as weird as you find negative ones. Perhaps you’re a snowflake 🤷🏼‍♂️ Anyways another filtered, you don’t add anything to the narrative whatsover. I assure you if IQE deliver good news I’ll be delighted and say as such…..

[guildedge] 21/6/2021 22:39

2016 132m revenue 18.36m profit. 2020 179m revenue 2.9m loss. Record revenue but margins were terrible. May be little debt but they are simply not matching profits of previous years. Problem is it's all gobbled up in costs and low margins. Matching 2020 H1 is meaningless if they make no money. The share got hammered on last update about concerns over strength of pound and margins. Plus they are spending millions on machinery that takes years to recoup. Not sure what the next update will bring but the pound has been close to $1.40 to the pound which will mean bottom line being hit here more than last year. So matching last year's revenue is simply not good enough. Maybe they will suprise the market as and when this TU comes. The CEO still has 12m or so loaned out shares so he has aready hedged his bets. At present share is drifting as market likely expect the worst. They have been wrong before. Really no idea which way this will go. We do still have one broker rating this above £1. Ennismore have not increased short above 1% yet. They have done last 2 TU on a Friday in June. Wouldn't be shocked to see it after AGM date. Could pop up any date really. Assuming the person who writes it is not on holiday. You would think they would be at AGM. On flip side they do have a lot of IP rights. Just need to prove they can make millions from these. Can 5G deliver profits? Hmmmm

[dexter5] 21/6/2021 21:54

Dear fellow B.B's posters of note Wait for the trading update and assuming it's halfway decent all these big holders with negative opinions will be in full swing running the company down in a very coordinated manner. It makes you wonder why they are still here L.O.L. Pointless in arguing with them.

[charlie9038] 21/6/2021 21:33

Good point what have we got to worry about as PIs, but it also depends what he paid for them. But if I was him I would be asking questions.