Iqe Share Discussion Threads

[lpavlou] 09/7/2017 20:56

My personal view is that wee only looking at circa 10% growth in H1 but it should ramp up in H2. A lot will depend upon any contract wins or announcements for H2 and beyond . The share price normally drops on the results and then bounces back.

[bocase] 08/7/2017 08:42

A high P.E. is also justified by growth potential. If two companies have the same P.E. and one has exponential growth prospects like IQE and the other does not then it makes the one with the prospects cheap compared to the other despite having the same P.E.

[amt] 08/7/2017 07:36

Probably the patchy historical record and cash conversion that stop the share price going through the roof. If the next results show good organic growth and cash conversion then pe of say 30 would be justified. I recall ARM were on pe of 80 or so for several years when it became clear they were a great company. These high pe occur on UK stock market because there are not many such companies available for UK funds to invest in so to get a slice institutions must pay through the nose.

[sheep_herder] 07/7/2017 15:31

tomy, it's not in the hands of IQE, it's in the hands of their customers and then the OEMs after that. Not much IQE can do to progress these new businesses aside from deliver the highest quality product they can.

I personally don't care about the short term given they haven't really started the ramp up in these high growth markets. In 6-12 months we'll have a far better idea of how the photonics side is going and it should be a fast ramp up if what we've heard recently is all true.

Then we have many more markets due to come online in the next 5 years. Stick as many as you can in your ISA/SIPP and come back in 20 years.

Edit: I should say that they are actually trying very hard to progress these technologies in the new CS cluster. But commercialising them I think will be in the hands of their customers and again out of their control.

[darola] 07/7/2017 15:23

Tomyg,

Take it your stearing well clear of Amazon, Google etc?

[grity] 07/7/2017 15:22

Next upward leg started , hop
On before you wished you had !

[hammerd2] 07/7/2017 15:05

That's what people said at 16p.

[tomyumgoong] 07/7/2017 14:55

someuwin,This is all 'pie in the sky' if IQE can't translate this 'news' into revenue!Again, I believe they can but I believe in caution and seeing the 'cash in the till'

[someuwin] 07/7/2017 14:49

* Key milestones delivered on several major
photonics programmes during H2 2016, providing
significant growth opportunities for 2017 and
beyond;

* Excellent progress with our new cREO
technology had delivered some early wins,
including delivering a step change in GaN on
Silicon technology (the elimination of “parasitic
channel”), and active engagement in
development programmes for advanced RF filter
applications;

* A key customer is engaged in end market
qualification using IQE’s GaN on Silicon material,
signifying that this technology is close to
commercialisation

* Significant contract wins in InfraRed, and
progress in a number of development
programmes continue the growth of this business
unit, and progress towards new high volume
applications.

* Positive market dynamics, including increasing
mergers and acquisition activity and sector
investment, reflect the increasing focus on
compound semiconductors as a critical enabling
technology to major growth themes, including
high speed communication, the “internet of
things”, big data, advanced medical technology,
energy efficiency, and autonomous vehicles.

* Good progress by IQE’s Joint Ventures in the UK
and Singapore mark key milestones in their
developing as centres of excellence in driving
innovation and commercialisation of advanced
CS technologies. The UK Joint Venture was a
catalyst to securing c.£300m of funding towards
the continued development of a UK CS Cluster,
and the Singapore JV has been selected as a
partner in a major programme for CS on silicon
technology.

[tomyumgoong] 07/7/2017 14:47

someuwin,£550m does seem cheap, however, if IQE can't beat revenues consistently then £550m could look expensive! I'm not being negative as I believe in this company but IQE need to consistently beat previous figures to impress the market! If, we have been built into any of the upcoming technologies then we should hope to see significant revenue increases in H2's figures......if not a market cap of £550m will not be justified and down will go the sp!IMO this is make or break year!

[daijavu] 07/7/2017 14:47

Are you saying it could be another ARM or even better?

[someuwin] 07/7/2017 14:22

"IQE is the undisputed global leader in the supply of
advanced wireless materials and is very soon set to
replicate this success in its other primary markets,
particularly the rapidly growing photonics sector
where the Group’s products enable a wide range of
optical-fibre communications networks and
increasingly in consumer devices in the form of
sensor technologies."

[someuwin] 07/7/2017 14:19

Valuation of £550m really does seem peanuts for a high tech co fundamental to so many fast growing products and sectors.

"IQE’s materials are at the very heart of many of
today’s advanced electronic products and with
emerging technology breakthroughs in fields such
as artificial intelligence, the Internet of Things, and
3D sensing, the possibilities are seemingly limitless.
Technology is evolving at an amazing rate and IQE
will play an increasingly important role in
transforming and shaping the world in which we live."

[someuwin] 07/7/2017 12:51

Rumours that the Huawei Mate 10 will launch in October and will have sensors for scanning and AR.

May or may not be true, but what is becoming clear is that ALL high end smartphones are going to have to have some form of AR sensors as we move into 2018 and beyond.

They're going to need an awful lot of VCSELs.

[hammerd2] 07/7/2017 10:38

It's quite easy really. At the moment they're tiny little bits in 60% of smartphones - not sure where 75% came from - so that's why revenue isn't as big as one would expect. The 'secret plan' is to get bigger bits of wafers into more of the components in future.

Shhh. Don't tell anyone I told you.

[mad foetus] 07/7/2017 09:48

It is hard to see how IQE wafers could end up inside 75% of the worlds devices without having an share price far in advance of today's share price

[someuwin] 07/7/2017 08:12

Time to add imo.

[shavian] 07/7/2017 06:14

After what I heard at the Cardiff event I could not resist another small top-up at 75.2p, in the hope of repeating the success of my last one at 59p on the previous dip. Sadly I'm still a teeny-weeny shareholder alongside most of the posters here by the sound of earlier posts!

[tomyumgoong] 07/7/2017 01:38

Ipavlou et al,I roughly agree with your predictions however, I am looking for a higher figure from wireless! Why? Well, this time last year IQE, were still tied into the RFMD/Qorvo discounting agreement, which was paid off by September H2. If you have a look at the H2 wireless figure compared to the H1 figure it was up about 12% I believe this was down to this agreement finishing and also currency devaluation! In the past I would have put it down to the 40/60, 45/55 historic wireless split, but Drew Nelson in one of his interviews stated that that split no longer exists, so I believe the extra revenue in wireless is to do more with the Qorvo agreement being paid up. That said, I would say £48m( the same as H2 2016).So my figure would be £72m for H1The market will be looking for IQE to consistently show revenue growth otherwise all the speculation and new initiatives may count for nothing where the share price is concerned. Can IQE step up to the mark or is it a question of The Emperors New Clothes! It's cash in the till that counts!

[lpavlou] 06/7/2017 23:46

Where do people think the Hi numbers will come out at?
Last year it was:
Wireless £43m
Photonics £11m
Infrared £4.5m
CMOS £1m
Licensing £3.5m
TOTAL £63M

I can only see £68m
Wireless £44m
Photonics £15m
Infrared £5m
CMOS £1m
Licensing £3m
TOTAL £63M

This doesn't justify the current SP, but I expect the main growth to come in H2. The share price pull-back makes this more interesting for me, as I can't see how they will remain independent if the H2 growth materialises. This is chicken feed for the US / Chinese players. I will look to get back in tomorrow having closed my previous positions in the low 50p's - costly mistake, but partly out of my hands due to a need for the money.

[maxwellsdemon] 06/7/2017 18:40

...........The Phab2Pro implements this technology using a tri-camera sensor. The subsystem features a 16 megapixel resolution CMOS image sensor (CIS) from Samsung, a VGA resolution CIS with global shutter technology from Omnivision, and a 38 kilopixel resolution 3D Image Sensor from the collaboration between Infineon and pmd integrated into a subsystem with a NIR vertical-cavity surface-emitting laser (VCSEL).
#




Competition among CMOS image sensor suppliers is heating up for 3D sensing capability using time-of-flight (ToF) technology and other techniques for 3D imaging and distance measurements.

ToF determines and senses the distance of faces, hand gestures, and other things by measuring the time it takes for light to bounce back to sensors from emitted light (often an infrared laser or LED).

CMOS technology has progressed to the point of supporting integration of ToF functions into small chip modules and potentially down to a single die.

Sony, Samsung, OmniVision, ON Semiconductor, STMicroelectronics, and others have rolled out and developed 3D image sensors.

Infineon has also jumped into the image sensor arena with a 3D offering that is built in ToF-optimised CMOS technology.




See also:

[sweenoid] 06/7/2017 18:37

Video update from Bluglass- nothing new at all really mainly due to the NDA but mmay be of interest to shareholders.
He also mentions Seren photonics in the video , you may not know but IQE's chairman Godfrey Ainsworth is CEO of Seren



Nothing more to add about last night, nice to meet Shavian and always good to share conversation and a beer or ten with Hammerd, if you want to eat in Cardiff try Asada44- wonderfully curated menu and wine list :-)

I won't be 'here' much until the IMS, unless there is some important news in between. IMS likely 18-20th July, I favour the 18th or 19th so , so about 7 trading days.

See you then
S

[picobird] 06/7/2017 15:05

Interesting, perhaps
' IQE back from the Future'
:))

[shavian] 06/7/2017 12:52

Someuwin: Drew Nelson's last minute absence was explained as a transport delay. Sorry to disappoint you, although that might of course have been a smokescreen for something more important?On Chris Meadows' comment about IQE being in 55% of smartphones, he explained that IQE's wafers go off to the chip makers who are contracted to OEMs. He wished he could have used the slogan "IQE Inside" but that had already been bagged by Intel.

[hammerd2] 06/7/2017 12:41

Ian, no he didn't say IQE components - was more probably 'components made from IQE wafers'.

If it's possible for PR to misrepresent something no matter how accidentally or innocuously they will manage it !