Iqe Share Discussion Threads

[tomyumgoong] 09/3/2017 22:10

Sweenoid,I must admit I'm a bit confused also about your estimate considering IQE achieved £63m in the first half 2016 and the end of year trading statement says 'sequentially' ahead of H1.If it was the same that would make the figures £63m + £63m = £126m Was this just a typo when you were in a rush maybe? Or do you have a reasoning behind this figure?

[poombear] 09/3/2017 21:55

They have already stated H2 would be sequentially more than H1 (£63m). So will be over £126m

[sweenoid] 09/3/2017 21:50

???
No idea where you got 116 from, I wrote 123 -3 million above analyst expectations , £130million or better would suit me fine
The 'presentational' benefit of £v$ especially in the 2nd 6 months could push that to 135

EDIT EDIT-just reread the latest Edison note -expectation has GOT TO BE £130million and EPS of 2.9, interestingly Connacord the house broker is still on £120 and 2.7


S

[lpavlou] 09/3/2017 20:09

Sweenoid, your £116m is bearish and wouldn't justify the current rating. We need to show more growth than that and be nearer to £130m mark to show they are at last delivering the growth. This is before we factor in any currency movement.

[sspurt] 09/3/2017 16:30

No news from the CS conference yet?
#leavingitlate

[tomyumgoong] 09/3/2017 15:43

A few years ago I heard an interview with an IQE employee. Not one of the recognisable chaps! Can't really recall what the interview was about but one sentence stuck with me and that was 'if we can get built into a leading smartphone then this will be transformative for the company'! At the time I thought this was strange as we already are in various smartphones via Qorvo, Skyworks, Avago etc......but with that sentence I just thought IQE had something up their sleeves!

[sweenoid] 09/3/2017 15:42

Thanks that article is old news but actually quite well written, gee ,it looks like one of my posts ;-)

One minor thing he did not mention , but a fact that is a major positive for IQE's VCSEL business is this - chips are getting smaller, so 1 wafer that produced X chips last year, now produces X+ this year and next year X++ and so on as the die size decreases. This is the reason why despite growing IQE's wireless business nicely, revenues only increase by 5-10 ?% - their OEM's can simply get more chips out of the wafers supplied

BUT - here is the GREAT PART for IQE - VCSEL size CANNOT be reduced - they are the size they are ,more demand= more wafers and more profits. :-) :-)

The guy in the article has it right- as new innovations come into the market ( always it seems led by Apple) CS use goes UP, the last 2 itineration of iPhone and hence competitor handsets have produced little innovation , that's changing THIS YEAR

THE Big markets for VCSEL's are laser focusing, 3D imaging, gesture recognition and proximity sensing, the inevitable adoption of VR and AR for Hand and body tracking means HUGE markets have to be supplied.

I won't be posting much ( if at all ) before finals on 21st , my own 'targets' are better than the analyst consensus and if we hit them I will be happy, the figures I look for are revenues, fully diluted EPS Net debt
My targets are £123million , 2.8 and £28million ( debt goes up and I don't worry - this is a £v$ effect which will adversely effect the leverage as well)

Dissecting the results will probably need the skills of a forensic accountant which I ain't , so it's those headline figures that count for me.

The fall in the £ affects IQE positively in the presentation of results but
adversely for debt - I can very happily live with that :-) :-) the present low interest rates means a highly cash generating stock can mange easily :-)

The KEY to the sentiment on IQE on results day and after, will totally depend on the outlook for 2017 and it is the outlook statement that is pivotal to the share price and for any long- due re-rating, I think we should be on a PE of 20!. Whether we like it or not the markets will be influenced by the a analyst guidance on the day. I fully EXPECT management to post a rosy picture on business AND outlook and look forward to the new consensus estimates

Later
S

[dr_smith] 09/3/2017 15:25

Thank-you Tomy. Interesting to read on context, and scaleability.
A lot of gizmos for a phone, that was once two tins and a piece of string. ;-)

[bobd29] 09/3/2017 15:22

That is a very interesting read and particularly if the IP8 plays ball then the earnings future would demand an upgrade in sp, exciting times imo.

[someuwin] 09/3/2017 15:12

Great stuff!

[rivaldo] 09/3/2017 15:08

Cheers tony - let's try this. Hopefully this will attract some Stateside attention:

[dpmeyer] 09/3/2017 15:04

Good find, Tom. Interesting article - no surprises, but nice to see substantial photonics growth being predicted like this.

[rutter] 09/3/2017 15:03

can't access the article

[tomyumgoong] 09/3/2017 14:55

Hey guys/ galsCheck this out......again, if the link doesn't work could someone re-post....this is good stuff !htTP://seekingalpha.com/article/4053636-iqe-plc-focus-photonics-vcsels

[big7ime] 09/3/2017 10:29

Holding up well considering the sell off in the broader mkt
Ready for the next push upwards towards results day..

[zaina003] 08/3/2017 18:32

Thanks

Coppertrader

[coppertrader] 08/3/2017 13:39

ZainaI very much doubt it will have any effect. You generally hear about moving into the ftse 250 and 100 neing good news for a sp, but this is because of the amount of funds, such as trackers that follow these two main indeces and have yo buy in after 'promotion'. I dont believe there are many aim 50 funds so would not count on it...However, the government have committed a bit of money to 5g development and other areas of our business in the budget... not sure how these numbers tally up with what was expected?

[zaina003] 08/3/2017 11:22

hi

just saw an article on research-tree.com that IQE will be entering FTSE AIM UK 50
By end off the month

what dose that mean is that better for the company and will the shares go up further??? sorry don't know much about stocks and shares IQE is my first holding
and brought opti today

[big7ime] 08/3/2017 11:14

MMS lopping it on small volume
I guess we all expect good results so bound to be some nervousness towards the 21st

[panic investor] 07/3/2017 16:24

Boboty don't go by Advfn trades !

[agaudry] 07/3/2017 16:20

I moppeda few up 1st thing today ..

[spoole5] 07/3/2017 16:02

Whenever people start taking profits here there's always new buyers waiting to mop them up. Very positive signal.

[boboty] 07/3/2017 14:54

From the trading data I can see there are more buys than sells today and further volume is about half normal

[rivaldo] 07/3/2017 14:50

Good read across from Skyworks where two analysts have now increased their price targets, "citing a bright outlook for higher growth in 2017":



"Canaccord’s Walkley increased his price target by $9, to $105, citing the rosy outlook from last week’s Mobile World Congress. From his note:

Overall MWC meetings lead us to believe Skyworks is well positioned for strong trends throughout C2017 driven by strong content share with leading Chinese smartphone OEMs including Vivo, Oppo, Meizu, Xiaomi and Huawei. In fact, Huawei was Skyworks’ second largest customer during its December quarter, and our meetings with Huawei suggest a very strong long-term relationship with Skyworks for future high-end smartphones. We also believe Skyworks is increasing content with Samsung and is well positioned for content growth with new Samsung products ramping in the upcoming quarters. We believe other Chinese OEMs will follow Huawei’s leadership with increased RF content with an increasing mix of mid to high tier smartphones adding diversity/receive modules for carrier aggregation. We also believe Skyworks inventory situation has improved with the reduction of iPhone 6S inventory during the December quarter, positioning Skyworks for strong year-over-year growth trends in 2017. We now anticipate Skyworks will return to year-over-year growth with Apple (AAPL) and is well positioned for potential double-digit growth with the iPhone 8 during 2H/C2017.

Barclays’ Curtis boosted his target price by $15, to $100, citing his recent meetings with the company and its optimistic outlook for the rest of the year (and beyond). From the note:

In the near term, Mobile will grow low teens y/y as RF devices across geographies demand more connectivity content. In addition to gains at AAPL (getting “fair share” of 10-15% TAM increase) and Samsung (increased content in mid-tier phones), the company also highlighted the opportunity in China (exposed to 4G players growing 10%, less so 3G/2G players) with higher end OEMs like Oppo, Vivo and Huawei. Longer term, growth is expected to come from IoT (growing 15-20% yearly) driven by connected autos, factory automation and 5G (Broad Markets growing faster than company at higher GM). Operationally, SWKS is confident in hitting 53% GMs and returning 40-50% of FCF. There is an openness to return more cash to shareholders with M&A sounding less likely. Net net, SWKS is positioned for further growth and we strategically remain positive on the AAPL supply chain into the IP8 cycle.

Skyworks is up 0.8% to $95.68 in recent trading, and is up more than 28% since the start of the year."

[panic investor] 07/3/2017 14:36

somebody has been buying them !