Iqe Share Discussion Threads

[richardc77] 22/3/2017 08:44

Sadly the downside of being a talked about share is the influx of morons ;)

[adventurous] 22/3/2017 08:23

Creative Accounting!! LOL - Adjusted figures are the only ones an investor can use to judge performance and enable forecasting to be more accurate.

[poombear] 22/3/2017 07:43

Beat me to it....

IQE plc (LON:IQE) was upgraded by Peel Hunt to a “buy” rating in a note issued to investors on Wednesday. The firm presently has a GBX 60 ($0.74) price target on the stock, up from their prior price target of GBX 35 ($0.43).

[techno20] 22/3/2017 07:42

Looks like Peel Hunt have upgraded to a Buy, with target moving from 35p to 60p.

[someuwin] 22/3/2017 07:42

Peel Hunt ups target from 35p to 60p

[toptrump1] 22/3/2017 00:28

Many successful investors and fund managers use operational cash flow as a favoured measure of how well a business is performing.

IQEs rise in cash flow was just 5% in 2016
Now this would be OK for an average share but considering the meteoric rise in the share price due no doubt to the Internet tipsheets and the currency gains I really think the results are mediocre

Photonics was expected to be around the 27m mark and fell short considerably
CMOS hasn't got going but is early days and will take years to be profitable
Wireless actually held up well and surpassed expectation and if it wasn't for that the overall result would have been poor.
debt level still remains high due to increase in the
Capital expenditure which is greater than the increase in revenue.

Analysts views of adjusted 3p eps were known 12mths ago 3mths before the start in the share price rise and 9mths before before the new yr share tips so I have to question whether the rise has been overdone and we will get a rebalance

My target is therefore 40.5p based on an Actual p/e of 15, no creative accounting and in line with its peers ave.
I take no notice of housebroker or any other broker tgts, their record is extremely poor, not least with IQE through the yrs.

[rivaldo] 21/3/2017 23:59

This columnist believes "there could be a lot more to come" from IQE - and I agree:



"A good year’s trading

Headline figures include revenue growth of 16.4% compared with the previous year, adjusted diluted earnings per share increasing 15.4%, and cash from operations up 7.1%. Gross borrowings rose around 60% to stand at just over twice the level of operating profits, which looks manageable.

The big question after such a stellar performance is — is there more growth to come? Chief executive Dr Drew Nelson sounds optimistic, putting the firm’s growth in revenues, profit and cash generation down to the company’s “cutting edge intellectual property”, which, he says, is delivering results through a “diverse range of growth engines.”

IQE has its sights set on what it describes as “global leadership across a range of markets”, arguing that advanced semiconductor materials, such as those IQE produces, are becoming an ever more important enabler of many electronics applications. Dr Nelson reckons the firm’s strategy, underpins this year’s strong financial performance and he sees an ”exciting” outlook for the business.

I can’t argue with the company’s operational and share price momentum, and wouldn’t want to bet against either. City analysts following the firm expect earnings to tick up a further 5% this year and 12% during 2018. meanwhile, at today’s share price around 51p, the forward price-to-earnings (P/E) rating for 2018 sits at just over 15. The company does not pay a dividend."

[lpavlou] 21/3/2017 23:47

Having another read through the results, I still feel a little disappointed that they only managed to get to £132.7m turnover, given the strong currency gain. Edison are only forecasting £137m for 2017 and £140m for 2018. That's not very exciting in my book. Appreciate there are potential upsides as i doubt they would have spent £10m on photonics, if they didn't have a strong order book. Aall in all, I reckon the share price in the 45/50p range is fair value, with potential medium term strong growth. Having closed out today, I no longer have a position, but will keep tabs and look to get back in on any market weakness.

[bobd29] 21/3/2017 23:09

Would happily take 69p by next results in November?

[lucas5950] 21/3/2017 20:06

Nothing seemed to move the share price from around 50-51 today. Thought it would continue it's uptrend. I'm expecting another drop tomorrow.

[spoole5] 21/3/2017 20:04

Taking notice of what the IC says is a recipe for losing money.

[lord gnome] 21/3/2017 19:55

Today's IC on line view:

'IQE (IQE) revealed a slide in full-year profits even though revenues were up in all its key markets. The group, a supplier of wafer products and services to the semiconductor industry, increased gross profits by 13 per cent, but comparative below the line suffered due to increased exceptional charges and asset sales in 2015. Discount the one-off effects and adjusted operating profits were up 17 per cent to £22.1m. Operational efficiencies were reflected in a cash conversion rate of 102 per cent. Buy.'

[picobird] 21/3/2017 19:37

Really good day. Sorted my portfolio out about 10 days ago to round up my RDSB shareholding which meant selling albeit temporarily 10% of my IQE holding. Then the price shot up again.
Despite arriving at an airport this morning got back in at my sell levels - relief.
These results were absolutely brilliant.
Broker note 69p can well believe it, only just back on the net.

[bootie64] 21/3/2017 17:18

Total Volume 23,375,646 Well what a busy day :)

[rutter] 21/3/2017 16:29

large volume. And probably more to post after the bell. Wonder if it's the "lucky ones" who sold first thing buying back in. Basically the share price has held up well.

[rivaldo] 21/3/2017 15:32

Excellent spot poombear - 69p is much more like it.

[poombear] 21/3/2017 14:54

Broker upgrade.

"IQE plc (LON:IQE) had its price target lifted by stock analysts at Canaccord Genuity from GBX 51 ($0.63) to GBX 69 ($0.85) in a research report issued to clients and investors on Tuesday."

[csmwssk12hu] 21/3/2017 13:10

PEL now up 7%

[kilgallp] 21/3/2017 12:56

I was online late this morning, so missed the drop to 46-47p. Had I seen that I would have bagged a load more.

[shavian] 21/3/2017 12:45

Classic case of traders 'buying the rumour and selling on the news". Prats. Nothing to worry about this stonking set of results. Well done IQE - a credit to Cardiff!

[american idiot] 21/3/2017 12:25

I really do not understand the panic amongst some 'investors' here.

A huge rally from the high teens to 55p virtually in a straight line and on the day of results theres widespread panic when profit takers move in to bank gains. The shareprice is currently down just 3.75p.

Read the outlook :-

Current Trading and Outlook

The Group's technology and market leadership, and its strong pipeline of high growth opportunities positions it well to continue its growth profile over the coming years.

The current financial year has started well and trading is in line with expectations. The outlook for the full year remains very positive, with good upside potential. The Board remains confident that the Group is on track to achieve expectations for the full year, and anticipates that the Group will continue to benefit from strong cash flows.

...

If anything scuppers IQEs rise it'll be something outside of their powers...i.e..A sudden macro downturn.

(Will continue to trade the dips. Loving IQE !)

[adventurous] 21/3/2017 11:47

The poster who thought the increase from H1 to H2 wasn't good because of the exchange rate, ought to have read the statement, where it explains that after the Brexit vote the rates swung back i.e. less £'s for $'s.

[adventurous] 21/3/2017 11:38

For the poster who appears to make wild inaccurate comments - this one clarifies the Licence Fees - Note: they were lower in fy16 compared to fy15.

Copied from Edison:

Licence income, which totalled £6.7m in FY16, is a relatively new income stream for IQE. At present it is generated from two JVs. The one in Wales was formed in July 2015 with Cardiff University. The one in Singapore is with WIN Semiconductors and Nanyang Technological University. Revenues are expected to be relatively lumpy. FY16 licence revenues included more recurring elements, and were therefore lower than FY15 revenues (£8.0m), which were primarily upfront elements. We model FY17 and FY18 licence income at £4.0m in both years. This revenue stream is likely to become more significant in the longer term if IQE’s technology is deployed in volume applications such as general-purpose LED lighting and solar power.

[poombear] 21/3/2017 11:19

New update from Edison.