Iqe Share Discussion Threads

[tonsil] 26/3/2017 09:20

Cashpoint Hats off sir!I didn't expect a response but yours deserves respect for both honesty and patience.

[aimingupward2] 26/3/2017 09:10

Why is the upper of the two parallel trend lines drawn where it is and not higher, through the two peaks (in approx 2004 and late 2010)?

[hammerd2] 25/3/2017 21:56

Now THAT'S an exponential curve :-))

[sailastra] 25/3/2017 21:30

What is the point in referencing IQE'S share price in 2000.....
As has been pointed out....None of the factors that make the company interesting today had even been imagined 17 years ago, Nokia, remember them?, introduced the first camera phone in 2002 and Apple introduced the first IPhone in 2007....Come on boys and girls...

[maxwellsdemon] 25/3/2017 19:58

rhomboid,

This is the graph rebased by ADVFN which takes into account the share split.. It was pretty extreme. It dropped to under 3p in 2003.

[mirabeau] 25/3/2017 19:36

IQE Results May Be a Buying Opportunity as Shares Dip to Profit-Takers

By Malcolm Stacey | Wednesday 22 March 2017

Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Hello Share Smackers. After a long - and for me nervous - wait, the full results for IQE (IQE) are in. And as I predicted on this terrific website, the shares fell on the announcement.

Of course, this kind of mini setback often happens, even for the most promising of companies, and I kick myself that I did not sell up a few days earlier, so I could buy back more cheaply today.

I console myself, that occasionally shares do rise like a rocket on reporting day. And sometimes a predator comes out of hiding at the same time with an attractive take-over bid in its pocket. Sadly, not this time.

But looking at IQE’s results, there is little reason for the shares to fall, other than due to the get-rich-now tendencies of the profit-taking brigade.

Operating profit, which I often find is the most telling statistic, is up by 17% on last time. That’s up to £22.1m. Revenues rose by 16% to £132m. And one is always happy to see profit beating revenue in percentage terms, if only - as in this case - by not very much. And earnings per share are improved by 15%.

Judging by the drop in share price, the City expected more. But come on, these figures show some nice progress.

I’m not the only one who thinks the share is now undervalued. Canaccord Genuity has looked at the figures and raised its target from 51p to 69p. Currently, the shares are below even 51p, so if the new target is realistic - and I think it might be - then there is a long way to rise.

I won’t go into all that IQE does to further the great and growing communications world out there. It would take me forever - and I urge you instead to consult the company’s website. It has been doing it for 30 years and is now a world leader.

[panic investor] 25/3/2017 19:29

Now that is commitment well done sir !I remember 99 etc - lucky enough to break even after the crash but it still hurt - my boss st the time had made 100k in one week but again lost all gains These were the times of dial up connections and ringing your broker I see similarities but these days nothing's a level playing field - the likes of g Sachs control the market .....

[cashpo1nt] 25/3/2017 18:56

I've held since November '99 (2000 @197.7p. Tried to catch a falling knife after the £8 high. since then I've traded down to an average price of 18p. It's been a long hard slog. Sadly I sold a fifth of my holding at 50p before the results and just missed the chance to buy back at 46p. All's well that ends ....(fingers crossed!)Anyone else been equally foolish but patient?

[rhomboid] 25/3/2017 18:47

Tonsil
There was a 1 into 10 share split in sept 2000 so it's not quite as extreme as that ..

[tonsil] 25/3/2017 18:16

IQE's peak share price was an incredible 822 pence on 12/09/2000 !!

Some way to go yet.


Anybody still holding from then? Go on you can be honest with us. We won't laugh.

[yump] 25/3/2017 14:07

I actually agree that IQE could well be at the start of an upgrade cycle that it will benefit from because the margins at the start are likely to be higher than any existing cash-cow products.

I just think there are a fair few facts around on which to base the future. My imagination has done enough damage to my profits over the years and I'm sure that goes for others.

Ignoring the brokers seems prudent, seeing as they've changed their tune completely in the space of 6 months, which either means they didn't know much about IQE's market before that, or that they're just going along with the share price, in order to look credible.

Either of which, ironically, destroys their credibility !

I they had produced these notes in August, then that would have been a different matter entirely. I'm sure the information was there on margins, capex etc.

[mirabeau] 25/3/2017 09:37

Post 1636. Apologies for my tone. That some may perceive it as patronising is no cause for celebration.

Hangs head in shame and puts on hair shirt

[mirabeau] 25/3/2017 09:28

Look at how bullish this is. It does feel as though IQE is at the START of something rather than at the tail-end of something. A like the term 'upgrade cycle' as it suggests the beginning of an upswing and that allows for expansion of earnings and volumes which may explain IQE's CAPEX spend over the last 2 years. Now CAPEX is out of the way IQE will be able to focus on efficiencies (cost reduction) and margin expansion

-

IQE’s FY’16 results showed good growth in all key segments and came in c.4% ahead of our recently upgraded forecasts. We have upgraded our forecasts today by 5% and 3% in FY’17 and FY’18 respectively, but expect the upgrade cycle to continue. The increase in capex in FY’16 looks to us a strong indication of future volume increases, and we see scope for significant upgrades through the course of our forecast horizon. We highlight three opportunities in this note, each of which could materially move the needle in its own right. IQE is one of our key picks for 2017 and has performed strongly YTD (+48%), but we believe there is more to go for. We increase our target price to 76p and retain our Buy recommendation.

[sheep_herder] 25/3/2017 09:28

Ipavlou, I agree with Mirabeau. Why do you think it will take a couple of years to deliver?

You can see the growth in each division and this will only accelerate. They also have the additional benefit that will come with higher utilisation of the fabs.

I feel we're at the start of a 10 year growth curve.

[mirabeau] 25/3/2017 09:24

I didn't use the word 'imaginary'. I used the word 'imagination'. The two are entirely different. Read carefully before commenting

[yump] 25/3/2017 09:17

All the platitudes and cliches are all very well, but the problem is deciding which of the imaginary futures for the different shares you're interested in, is likely to pan out in reality.

Anyone can imagine anything. Some on here have imagined that every product IQE make is going to take over. There are loads of companies with imaginary rosy futures.

Whereas here if you deal in facts and put in a few years increased figures for photonics, you can come up with a set of scenarios, a min and max, for the future facts.

The future does not have to be imaginary, just because the present facts are not very relevant.

[mirabeau] 25/3/2017 08:57

Ipa

'Current facts'? The market's a forward looking vehicle and 'current' is nowhere near as relevant (indeed the present is almost irrelevant) as the future. The essence of successful investing is not understanding the present but accurately predicting the future. With IQE the market is pricing in new markets for its products but also rising margins

It's not what you can see that matters, but WHAT YOU CAN'T SEE. Use your imagination not your intellect. Einstein swore by it

[mirabeau] 25/3/2017 08:41

Micron jumps to highest level in more than two years

Micron shares surge after it swings back to profit

Jessica Dye and Pan Kwan Yuk in New York

Micron Technologies saw its shares climb to their highest level in two years after the semiconductor maker reported a strong quarter of sales and profit and signalled that the good times would continue to roll.

The stock was one of the day’s biggest gainers, rising 7.4 per cent to $28.43.

Strong demand and rising prices helped Micron deliver a 58 per cent jump in revenue to $4.65bn in the three months to March 2, in line with what analysts surveyed by Bloomberg had expected.

Net income attributable to Micron shareholders was $894m, or 77 cents per diluted share, versus the net loss of $97m, or 9 cents a share recorded in the prior-year period.

Mark Durcan, chief executive, credited the fiscal second-quarter results to “strong demand and limited industry supply” for its DRAM and NAND memory chips, as well as ongoing cost-cutting efforts.

As a result, the company is predicting a significantly stronger third quarter with revenue forecast to come in at between $5.2bn-$5.6bn and earnings per share to be between $1.43-$1.57.

The upper end of the guidance implies a 93 per cent jump in revenue growth compared with the third quarter of last year, when it booked a loss of 21 cents on revenue of $2.9bn.

The figures blew out current market consensus estimates, which see revenue of $4.79bn and earnings of 94 cents a share for the third quarter.

The bullish forecast from Micron had also lifted shares of other chipmakers on Friday with the wider Philadelphia Semiconductor index up 0.8 per cent for the day.

Micron’s guidance for the May quarter is “one of the biggest guidance beats we have seen in semis since Nvidia’s big beat in its October 2016 quarter”, said Stephen Chin, analyst at UBS.

However, Mr Chin cautioned that the current upcycle might not be sustainable.

“One risk to monitor is our global team’s view of some near term supply risk, assuming Samsung adds 40k wafers per month of DRAM capacity this year. If we see more DRAM capacity than this, we could need to reconsider our estimates,” he said.

At the other end of the scorecard, GameStop plunged 13.6 per cent to $20.70 after the video games retailer issued another disappointing quarter of sales and earnings.

Elsewhere, equity investors appeared to be in sanguine mood on concerns the Trump administration will not be able to push through its healthcare reform after the House’s vote on the bill was cancelled on Friday.

The Dow Jones Industrial Average fell 0.3 per cent to 20,596.72 while the S&P 500 lost 0.1 per at 2,351.7. The Nasdaq gained 0.2 per cent to 5,828.74.

[poombear] 25/3/2017 08:35

This backs up the Nanoimprint opportunity mentioned yesterday.

[d1nga] 24/3/2017 19:07

Quick question if I may , who would our comparator be listed on the nasdaq?

[sheep_herder] 24/3/2017 19:02

I posted on the old thread about DBR lasers which are very similar to DFB ones. cREO can be used to drastically reduce the number of layers needed to manufacture these structures.

Edit: this app note from Translucent is a useful primer:

[aimingupward2] 24/3/2017 18:18

In that note N+1 Singer have quite conservative growth forecasts, but they also say that there are 'multiple opportunities, short to medium term, with the potential to provide material upgrades.' So, pleasant news to look forward to.

[pugugly] 24/3/2017 17:59

poombear - Thanks -