Iqe Share Discussion Threads

[dr_smith] 03/5/2018 15:37

SH. In a previous life I was a software designer.
A company specialising in Warehouse Management systems would hard-code the required software per client, each time taking many months for 2-4 techies, plus more time, for company and client in testing.
My task was to create a new product that was fully customisable/configurable.
This meant massive costs saving for company and also meant client could be up and running faster, with (hopefully) less onerous or problematic testing.

So.. fully appreciate and agree with your thinking.
Also, given "time to market" is also a make or break in the mobile/technology world, minimising length of development/testing (if possible with ongoing insight) would have high (OEM)customer value, so more "go to" kudos for IQE.

[sheep_herder] 03/5/2018 15:10

JR, why do you think they need to qualify the reactor more than once? Or am I just reading your comment incorrectly?

[regasclockwork] 03/5/2018 14:40

thecrunk3 May '18 - 10:32 - 16919 of 16929

"Still see share price movment a bit strange to be honest. Very muted to excellent news. Given how high it has dropped from." -End-

Trouble is crunk, it should never had been at the height that it dropped from [181.5p - last November].

It reached that dizzy height mainly due to all the hype on these BB's.

Someone on here wanted it to 'pause for breath' when it hit 80p as he thought it was spiralling out of control, but then got carried away when Peel Hunt and other brokers raised their targets by monthly increments of say 20p to around 210p. He then upped his target to 225p, presumably to stay one step ahead of the pack.

His worry at 80p with all the good news that has transpired since then is hopefully now a thing of the past and the present 109p is a more realistic price and a firm base from which to progress from.

Obviously the good results from associated companies is encouraging, but that doesn't guarantee that IQE will report massive profits in the near future.

I like to be cautious in this respect to avoid disappointment in the short-term. Long-term looks good. In fact, I'm so confident that my average buy at 127p will be surpassed, I'm splashing on the factor 20 as I write. GLA.

[jamesrowe] 03/5/2018 14:33

Agree SH. Not only are they having to qualify each reactor separately for a customer but also doing bespoke design for each product. Sounds massively effort intensive and presumably impacts on reactor utilisation as well.

[sheep_herder] 03/5/2018 14:19

Yes, the NRE will be charged to the customer or spread over the volume shipments of any products. That's a given. I don't think we can make any informed guesses about the amount of work involved in each product as we haven't got enough info.

However, the fact that each product is bespoke, to whatever extent they can reuse designs over a previously developed and released product, may well be why the licensing model will be pushed sooner than later. In my opinion, there's no way they can scale the business if they have to do bespoke work for each product release. That's a screaming red flag to me.

[dr_smith] 03/5/2018 13:38

SH. You may be right. I have assumed this bespoke aspect is about tailoring knowns to customer needs - and an iterative time consuming process, but not requiring the same massive resource as developing an outright new product/component.
Also, if the work is customer specific, I would expect the cost to be borne (or largely shouldered) by the customer.

[grity] 03/5/2018 13:21

i feel the next catalyst to significantly move the share price up is going to be a contract style RNS. If we don’t get one we will have to wait till July tu or even September. Ime not counting on the AGM to give it a leg up .

[belt n braces] 03/5/2018 12:59

And by the way if your average is 7.8p, well done.

[belt n braces] 03/5/2018 12:56

Snf

My plan is to close the day that all the notified shorters’ positions go below the notifiable level. I will close down along with the others. I always have a plan, but as per the principles of war, the plan needs flexibility, i.e. to be able to adapt to changing circumstances, so the plan may change. Let’s see where that takes me.

[sheep_herder] 03/5/2018 12:56

DR, I think you're missing the fact that IQE have already told us that each new product release by a customer is a whole new bespoke RnD design.

[dr_smith] 03/5/2018 12:46

mf My assumption is that the R&D has now been "done" and it is now for the OEMs to create/modify/run with, amongst others, the IQE products, into the end markets, where these end markets may be to update old tchnology, or to create/exploit new markets.
(Car automation/autonomy).

This running with the "done" components is the inflection point.

R&D is never of course "done" though in that components can always be improved upon, but the current impetus is on the shift to production.

IMO in the past IQE has been either slow or not pro-active enough to monetise developments, so your concern over income versus R&D costs does need to maintain a balance. That requires Financial planning to harness the technical know how and technical vision to plan ahead for revenue versus costs. This is where diligence is required in seeking the right replacement for Phillip Rasmussen.

[mad foetus] 03/5/2018 12:11

I feel extremely confident now we have had confirmation from all our major clients that things are going well and they are ramping up massively. The big question for me is all about margins and how we are balancing R&D with actual making profits. I suspect the opportunities are so many and varied (plethora) that the medium term prospects of the company depend largely on choosing which projects to address. A lot is now dependent upon the management execution, but the potential is clear.

[suffersnofools] 03/5/2018 11:15

BnB - You have the facts already, they just don't suit the narrative of your organ grinder.

You haven't stated what your target price is to close your 'shorts'?

If it helps encourage you my average is now up to 7.8p after I added the last trading block at 90p.

[regasclockwork] 03/5/2018 11:03

I know the following is 'off topic', but it is about making money – or not?
This post caught my eye on VRS recently .

mylands
30 Apr '18 - 13:24 - 10954 of 10961
0  5 0
sandbag
“Years ago I bought 100k of ASOS at 20p and sold them at 30p and thought I had done well! Biggest mistake of my life!” -End-

There are possibly a few punters on IQE who bought at 20p and sold at 30p and were quite happy with that return on their investment and then sat back in horror as it soared to 181.5p. But, they possibly felt a bit better when it fell back to 89p. The old physiological effect?

I think I'm right in saying that ASOS [see above] was launched almost 16 years ago on the LSE.

Now valued at £4.7bn, with a share price today of 6032 GBX. [High: 7770 GBX].

Like Martin Luther King of - “I Have a Dream” fame, I also have a dream and hope it comes true before I also get 'assassinated' or die of natural causes.

'Cheap as chips under 185p and 225p by 4-June 2018'– It could happen - 'Dream On'!

[belt n braces] 03/5/2018 10:34

Jimboyce/crunk

Where is all this ‘factual’; good news? Can you highlight them in say five bullet points. If I am convinced by your arguments, I may close my short.

By the way ‘factual’; that pertains to IQE is what I am looking for.

[thecrunk] 03/5/2018 10:32

Yes regalsclockwork I see what you saying.

Still see share price movment a bit strange to be honest. Very muted to excellent news. Given how high it has dropped from.

Someone trying to pin it down.

[jimboyce] 03/5/2018 10:26

By now the shorters must see the writing on the wall.I expect to see an orderly exit by them from this point. But Don't worry the they will use every trick in the book to get out of this situation as fast and as cheaply as they possibly can.The next week or two will be very interesting.

[regasclockwork] 03/5/2018 09:37

thecrunk3 May '18 - 08:39 - 16915 of 16916
0 0 0
"All the news is brilliant."

"Except IQE share price goes down." -End-

Relax crunk,it's just 'pausing for breath' after the rise of 5.8p yesterday and possibly down due to a bit of profit taking.

The drop was almost bound to happen as I bought a few just before yesterday's close for 108.95p.

Tuck them away and think long-term.

[nickwild] 03/5/2018 08:49

A lot of 5,000 share sells today. ?shorters who are trading smaller units - previously 10,000

[thecrunk] 03/5/2018 08:39

All the news is brilliant.

Except IQE share price goes down.

[rivaldo] 03/5/2018 07:41

Lumentum beat estimeates with its results yesterday, but most importantly (1) the outlook is better than forecast, and (2) re 3D sensing:



"Fiber-Optics

Lumentum's core business is in fiber-optic components built into telecom networks and cloud computing data centers. Lumentum has pushed into a new market, 3D sensor devices for smartphones, with Apple a top customer.

"Though seasonally down, we made good progress on new 3D sensing customer programs and are well positioned for new customer product introductions during fiscal 2019," Lumentum Chief Executive Alan Lowe said in a press release."

[shavian] 03/5/2018 07:30

Great venue for the AGM. Village Hotel right on M4 J32, less than a mile up the road from home for me. Just a pity I’ll be airborne for the Med while you guys are enjoying all the good news and the tour of the Newport plant :0(

[hoverflyman] 02/5/2018 22:58

You certainly have your eye on the ball Sweenoid, thanks for your posts.

[sweenoid] 02/5/2018 22:39

Qorvo, our 2nd biggest wireless customer beats forecasts

This quarters results have uniformly been excellent, just Skyworks to go tomorrow night.

As IQE say, customers tend to ‘stick’ with them, so if your customers are firing on all cylinders, it simply has to be good for business
S