Iqe Share Discussion Threads

[netcurtains] 19/3/2017 13:20

GHH has a PE ratio THREE to FOUR TIMES (using Advfn figures) that of IQE.

Why is IQE so cheap compared to GHH?

[big7ime] 19/3/2017 13:16

Yes, for now
I expect it will account for 20%

[spoole5] 19/3/2017 12:42

But how much is photonics as a percentage of total revenue? Isn't wireless still by a long way the biggest revenue earner and the slowest growing?

[aimingupward2] 19/3/2017 12:36

4X or more for the photonics part of the business, but there are other parts that would command much less,surely.

[mirabeau] 19/3/2017 12:19

Sweenoid

4 x CURRENT REVENUES?

Interesting stuff fella..I like that type practical insight..all about the dollar at the end of the day

thanks

[sweenoid] 19/3/2017 12:03

calmarg- thanks for waking me up and posting a highly relevant link

the KEY part of the press release is here
Princeton Optronics operates an outsourced high volume supply chain with partners in Taiwan, the U.S., and the United Kingdom. Headquartered in Princeton, NJ (USA) with a total of 37 employees, Princeton Optronics has an annual revenue run-rate of around USD 10 million and is profitable. The transaction includes an upfront consideration of USD 53.3 million in cash and a substantial cash earn-out consideration related to realized 2017 and 2018 revenues, with a potential maximum earn-out value of USD 75 million.

what does this mean for IQE :-) :-) :-)

well Princeton, which is a small bit player in the VCSEL market, IQE own 80% of it is BEING TAKEN OUT FOR A MULTIPLE OF 5.3-7.5 OF REVENUES!!!

Previous acquisitions of IQE competitors in the CS space have been at x3.5 multiples of revenues, personally I was calculating a buy-out of IQE would demand a multiple of x4 revenues, this acquisition just shows the VALUE that the market is putting on a market WE OWN

here is full link

Go work it out
S

[bestace] 19/3/2017 11:25

Big7ime - I fear the spanner thrown in the works will be that of your own heightened expectations.

Even if you take your assumptions of 5% in wireless, a tripling in IR and double-digit increases in photonics, I struggle to see how you get to £150m for the year. You appear to me to have a narrative as to why revenue growth will shoot the lights out without having linked that narrative back to the hard numbers or what the company themselves have told us.

With regards to IR, they said in the July trading statement: "Wireless and InfraRed sales are expected to show a slight year on year increase"

In December, just 2 weeks before the end of the year, they said: "InfraRed has performed in line with expectations"

To expect a tripling of IR revenues is, to put it mildly, highly optimistic.

Happy to be proved wrong on Tuesday.

[calmarg] 19/3/2017 10:25

hxxp://ams.com/eng/Press-Center/Press-Releases/Thursday-16-March-2017

2017/03/16
ams signs agreement to acquire VCSEL technology leader Princeton Optronics

Sure stuff like this hasn't done iqes share price any harm

[aimingupward2] 19/3/2017 09:23

"quite right I have not posted on the Bur thread....Never felt the need frankly."

What are you talking about, sailastra? The posts are there for anyone to read.

Memory loss ?

[richardc77] 19/3/2017 08:01

Mid to high 130s

[poombear] 19/3/2017 07:42

Big7 I have seen zero evidence that infrared will treble, and even if it did Photonics would also need to turnover £27m in H2 to get to £150m which it just will not. So I think your estimate is way over.

[sailastra] 18/3/2017 23:36

Ok...Lets see how Tuesday goes...No harm done..

[big7ime] 18/3/2017 23:18

Not upset, just curious that you would wait over a yr before posting anything then several references to how early you got in. Sorry, It's just many post absolute tripe across advfn.

Have been running through all the RNSs of the last three yrs. solar didn't really take off as expected but I have high hopes for infra red and think we could see profit from this double or treble in these figs on tues.
the centre of excellence in Singapore investment £5m was a huge bug bear of many here sept14 as it was seen as money they could ill afford. I wonder if anything comes of that. And the de-stocking problems of 2015 although a recurring problem coupled with high sterling will be reversed this yr.

I therefore hope, no Expect revenues to be way ahead of analysts projections. should be no excuse to be less than 150m what with sterling weakness, photonics double digit increase, wireless up say 5% infra red tripling and so on. I think I'm not alone hence the share price Rocketing this yr.

That's why I'm uneasy, past history leaves me nervous that a spanner will get thrown in the works by these guys and results won't be so spectacular or they'll use results day to announce another use of cash. So I remain cautious and won't be surprised with the usual result sell off

However if the results are as I would hope with no other surprises from the board I think the share price could easily be in the 60s in the next few weeks. No more acquisitions please and basic eps 3.7+
Stop losses at the ready this time..


EDIT: must have been a yr ahead of myself sorry (have a thick head cold) I meant 130m sales, tripling of iR profit. Trying to justify the quadrupling share price in just over a yr. nobody (apart from a few of us here) wanted to know when it had p/e of six

[sailastra] 18/3/2017 22:33

Big7, your quite right I have not posted on the Bur thread....Never felt the need frankly. Iqe on the other hand I have owned for some time and until recently it has been a frustrating experience but still I have only made a few contributions. There are plenty of other threads that I make no comment on, as for the most part the thread is just noise.. Seems that I might have upset you somehow. Poor chap...

[poombear] 18/3/2017 14:02

Iqe's markets are changing quickly. As far as I can see the evidence is firmly in place that we will see Gan Power devices adding to their revenue stream in 2017. I hope to hear something on this next week though.

This article is not about IQE but nicely sets the scene.

[big7ime] 18/3/2017 13:05

Sailastra funny that you have never posted on the Bur thread between the dates you mention. Are you Another fantasy investor?

[bobd29] 18/3/2017 12:49

Unless you are a trader why be concerned about the next few days? I am intending to enjoy the ride IQE provides for the next few years and have no doubt that growth prospects over that time will be fantastic, and yes I can envisage a share price in the £1-1.5 region at some time. No problem with banking profits but if you don't need the cash just keep rolling and adjusting stop losses, longer term the outlook is very rosy imo.

[panic investor] 18/3/2017 12:01

I wish we'd all let the share do what it does to be honest

[big7ime] 18/3/2017 11:52

Comparing IQE with ARM is stupidity, do you even know what ARM does?

[sailastra] 18/3/2017 11:45

aimingupward

For fish and regular suggestions sign up to John's investment chronicle. Look it up on google. For only a few pounds a month he offers an excellent stream of suggestions and updates based around his own portfolio and years of experience as a fund manager.

I have told you to be very careful of advice posted on these boards, you have no idea who you are taking it from or what their agenda is. And that's being helpful..

[big7ime] 18/3/2017 11:43

Anyone got any ideas where the share price hasn't already gone up 10x?

[aimingupward2] 18/3/2017 11:05

Sailastra, thank you for responding quickly though, I regret to say, not very helpfully, especially repetition of 'plenty of fish in the sea'.

On the other hand, as you acknowledge yourself, the mention of Optibiotix by someuwin, is very helpful as it's not a company I was aware of and is clearly worth some investigation. Many thanks to him for that.

[sailastra] 18/3/2017 10:10

One other point...Arm was taken out at £24bn, IQE is currently capitalised at £364m.... comparing the two is unhelpful....Let's dream of £1bn in five years time, for now.

P.S Someuwin....That look's interesting..

[someuwin] 18/3/2017 09:36

Well, seeing as its the weekend. And seeing as you're asking, my suggestion for an ARM type rise is OptiBiotix (LSE:OPTI).

Not a tech co, but a life science company working at the cutting edge microbiome sector.

Like ARM they don't (and never will) make anything, but license out their patented microbial strains, modulators and sugars. Addressing weight management, cardiovascular, diabetes, skin health, Health Care Acquired Infections, Eczema, wound care plus many more to come.

These will be used by global food, pharma, health & wellbeing companies.

License fees, Royalties and profit sharing income will be coming in from multiple products in multiple sectors in multiple countries.

Gone from 8p to 80p already but I can see 800p within a couple of years - even then it will only be valued at £600m so room for potentially much more. (Swedish company Probi has much less IP but is already valued at £0.5bn)

[sailastra] 18/3/2017 09:18

Well, aimingupwards2, for example, I bought Burford Capital at 128p back in 2014 not a lot happened until the beginning of 2015 by mid 2016 they were 400p and I sold on the figures thinking they had run enough, six weeks later I bought back at 411p and very glad that I did, here we are a few months later and they are 835p and the story ain't over yet.
If you re-read the above post you will note "What matters is where this company could be in a few years to come"

I believe that IQE could be at the beginning of a growth phase, if this is confirmed on Tuesday the stock will almost certainly be re- rated and a PE of 20x earnings will be applied.
Other fish in the sea.....There are plenty... My point is do not ask for advice from a BB....Read opinions by all means but act according to your individual attitude to risk.. IQE is still risky...other fish not so much so..