Iqe Share Discussion Threads

[dickiebird2] 05/9/2017 08:27

Blue before day end anyone ?

[yump] 05/9/2017 08:26

Well done to those who held past 100p. I got out too early in retrospect when the share price reached a p/e of 25-30 on this years forecast, as it appeared that every man and his dog were in. In terms of the rating, given the interims, there doesn't look like there will be much earnings growth this year, so it will be interesting to see what sort of rating is really justified.

imo there's a lot of looking to the next year, each year.

I think they've yet to demonstrate how overall growth will happen, to take over from simple replacement of one product range with a newer one, which doesn't necessarily mean overall growth.

There has been lots of talk about increased margins on new products, so be interesting to see when that actually comes through.

[volsung] 05/9/2017 08:23

Well got my £7k worth at 125.9 I suppose that's something.

[pi0110] 05/9/2017 08:23

It is a shame that the licensing fee drop from £3.5m to £1m has hidden what is a 32% increase in {wafer} profit for H1. EPS of 1.35p look weak due to the licensing fee discrepency and in line with upgraded 2017 forecasts seems to dissapoint some.

Drilling down on the figures we have a 32% increase in Wafer profits to 1,35p and an expected FY 2017 of 3.27p which adds up to a further increase of 42% for H2 over H1.

So

H1 Wafer profit +32%
H2 Profit a further 42% on top of the H1 rise in profit

Unfortunately I don't know what licence fee may be expected for H2 but this kind of growth rate over 2017 is quite phenominal.

[richardc77] 05/9/2017 08:22

I have no doubt it won't go anywhere near 80p, in fact we could be higher than openening price before too long. My point is there are too many people here with only "one side of the coin" minds and with a basic view on what makes a share investible. The numbers were always going to be what they were today as it was signposted, what we need is a good performance and some level of detail about the coming demand and profitability by DN in the conf call later, that may have more impact on the share price one way or another...

[ny boy] 05/9/2017 08:22

Too early to buy, wait a few weeks to see how the land lies

[sheep_herder] 05/9/2017 08:22

Thanks galatea99.

[tini5] 05/9/2017 08:22

Searching down the back of the sofa right now...

[galatea99] 05/9/2017 08:20

N+1 Singer comment this morning:

"IQE’s interim results confirm a strong start to the year, as indicated at the trading update in July. Group revenue grew 12% to £70.4m, driven by a 17% increase in wafer sales. Photonics delivered strong growth (+48%), helped by the early phase of a significant ramp in VCSEL wafers, which we believe is related to the iPhone 8. Adj. EBIT fell 2% to £10.6m reflecting the expected reduction in licence revenue. We welcome the positive newsflow on VCSEL technology but are equally interested in the encouraging comments around GaN-on-Silicon for base stations and full service DFB lasers. Investor focus is on the large 3D Sensing opportunity, which we expect to drive significant near term upgrades, but we continue to believe that IQE’s technology will be adopted in a wide range of high volume use cases, providing continued strong newsflow throughout our forecast period. Our published bull case scenario includes only potential VCSEL related upgrades. As such we believe the shares remain attractive and retain our Key Buy recommendation"

[grabster] 05/9/2017 08:20

Love it! Intending to increase what is already my biggest holding.


Dr Drew Nelson, IQE Chief Executive, said:

"IQE's outlook has never looked better. The broad range of customer engagements across multiple technologies and multiple end markets, provide a clear path to increase revenue diversity and accelerate growth over the coming months and years ahead. The breadth and depth of customer engagement underpins the Board's confidence in approving the capacity expansion plan, which provides a flexible and cost effective route to significantly scaling up in our business over the next few years"

"The Group has continued to make good strategic, operational and financial progress in 2017, and has a clear vision and roadmap for the continuing growth of the business. The first half progressed well, and ended strongly with the start of a major new product ramp. In light of the benefit of a strong pipeline and increasing revenue diversification the Board remains confident that the Group is on track to deliver full year earnings in line with the recently upgraded expectations."

[fluid36] 05/9/2017 08:18

Always sell before results and buy back after results. Happens time and time again.

[nimbo1] 05/9/2017 08:18

anyone understand this?

inflection point
noun
noun: point of inflection; plural noun: points of inflection; noun: inflection point; plural noun: inflection points
1.
MATHEMATICS
a point of a curve at which a change in the direction of curvature occurs.
2.
US
(in business) a time of significant change in a situation; a turning point.
"the economy has crossed an inflection point and is poised for bigger things"

[fullbright] 05/9/2017 08:15

sold everything, bought back minutes later, made a wedge. Happy days

[sheep_herder] 05/9/2017 08:13

Thanks to all those who don't understand. I've got a load more this morning. Happy days.

[dickiebird2] 05/9/2017 08:13

Buy the dips !!!

[amt] 05/9/2017 08:11

Falling like a stone. Seems to me all the hype was in the share price so will settle back at a much lower valuation now until we see evidence of the ramp up in the numbers so may have to sit back for a year or so.

[mrx001] 05/9/2017 08:10

Agree with richardc on this one, the price had got frothy and I would expect a few down days on the share price now. The question is how down, personally I could see a worst case retracement to 80p. Can see that possibility not being popular, but it could be a possibility.

[mad foetus] 05/9/2017 08:09

"Major new product ramp"How quickly will the analysts get their clients buying?

[lw425] 05/9/2017 08:06

amazing you could sell for 130p+ on the bell

[apad] 05/9/2017 08:06

IQE: Quick Look
Loved that the first two words are "Strong Ramp".
Can afford to pay the bills.
Cash flow down.
Investment in intangible assets x3
Diluting share options x2
Diluted eps 1p cf 1.43
Debt up

More capacity planned - current capacity not fully utilised.

My opinion is that this company's future depends on whether this really is "an inflection point" in IQE's market and iff so whether it can get a significant proportion of the market.
Sunny uplands and bluebirds.
I cannot buy this company because I cannot understand what makes it special - i.e. difficult to compete with technically.
I bet the market will love these interims - but they won't understand the technology either.

apad

[lw425] 05/9/2017 08:04

the eps is no better than it was in the 30p days

[ayl30] 05/9/2017 08:02

Sheep, sorry missed out that I was agreeing your comment. Emphasising it won't be till next year we will be seeing resultant numbers

[richardc77] 05/9/2017 08:02

I suspect that the nature of the market and the way people react to the headline numbers will mean a down day or two this week, however the trend for the future looks solid and this bb may look better after some of the recent "frothy" investors have gone. The world in 2017 is one of extremes, so everything is "the best thing ever" or "a disaster" balanced views are a rare thing ;) I look forward to the conf call report later. GLTAL's

[sweenoid] 05/9/2017 07:59

Anyone relying on Tom Winnifred needs more than help ;-)
S