Iqe Share Discussion Threads

[beermat1] 02/6/2018 21:32

Is that really too hard for you to figure out ??

[belt n braces] 02/6/2018 16:11

Member since: 05 Feb 2018

yet has been following this board for over 12 months?

[richardc77] 02/6/2018 09:00

Look forward to feedback from Mondays meeting. I increased my position again on Friday, I am a believer ;)

[siborgz] 02/6/2018 00:00

I have been monitoring this board for over 12 months now and the thing that frustrates me most as Head of Finance for one of the largest global companies is the discussion around intangibles. The cash flow is very easy to understand and IQE are investing cash generation from operating activities in PPE for future profits. I welcome the opinions from most people on here but recently I have seen some pointless comments. Let's stick to the facts and enjoy the gains to come.

[chessmaster10] 01/6/2018 23:46

Regas, your continual commentary on almost every post from sweenoid is downright creepy, can you PLEASE give it a rest??

I understand you guys have some history, but I'm pretty sure it has no relevance to iqe, and as such your snipes just clutter this board with, frankly, useless posts.

Please concentrate on the company, it's business, prospects, risks etc... Not a personal vendetta.

[solderflux] 01/6/2018 21:06

Hope they have included short parking bays in the plans.

[regasclockwork] 01/6/2018 19:58

sweenoid1 Jun '18 - 16:31 - 17530 of 17531



"Nice, the greater the pull to South Wales, the better for IQE" -End-

I can't quite see how the 3-new car parks and the campus deal will add anything to IQE's profits, but it could create a space for Mr Softee's ice cream vans to sell a lot of wafers.

[panic investor] 01/6/2018 17:09

Not much happens in Wales mate - big bews

[dr_smith] 01/6/2018 14:49

"Natural Resources Wales (NRW) say there are potential land contamination issues associated with the historic use of the building. "
Did the exiting LG staff forget to flush the loo?

You would think they would have a more pro-active response considering it is bringing many jobs and rectifying a blot on the landscape for 22 years
"..the old LG site, which has been empty since 1996."

[potential] 01/6/2018 14:37

Should see a nice rise till close of play buys building up!! Iqe is a quality stock ignore the noise and focus on facts - I'll be very surprised if we're not close to £2 by year end!! I've heavily invested in here and have a very low avg but regardless I ain't selling a penny till we hit at least £2-£2.50 as that is what I value them at! Peace out...and Gl

[thecrunk] 01/6/2018 14:31

As someone who is long. I am almost giving up.

IQE are their own worst enemies.

But what I find absolutley hillarious is that their car park plans make the news. I mean WTF

hxxp://www.southwalesargus.co.uk/news/16262208.Three_car_parks_planned_for_Newport_s_compound_semiconductor_foundry/

[belt n braces] 01/6/2018 14:19

Accounts are not an exact science, accountancy is an art rather than a science. How intangibles are accounted for is down to the directors (who are responsible for the accounts - not the auditors). Cash however is king, and what the article highlighted by diplomat is stating is that the company does not actually generate much cash. Long term this is a red flag.

[adejuk] 01/6/2018 13:29

it will end when we have transparency on co ops

[mcsquared] 01/6/2018 13:20

So two independent sets of auditors now being questioned - when will it end.

[belt n braces] 01/6/2018 12:48

I think the penny is about to drop, the company is simply overvalued. A high dependancy on banging expenses on to intangibles, with the actual cash generation actually quite minimal. In my view the good old days of 180 per share are well and truly over, it will be interesting to see where this goes over the next 12 months. There are good reasons for the high level of shorts.

[diplomat65] 01/6/2018 12:28

As we prepare our questions for the BOD at Monday's AGM it seems timely to remind ourselves of some hard-hitting questions raised in this article published by FiveFreeShareTips.com on 25 March 2018:"IQE, the manufacturer of wafers which pretends that it is the next ARM and is the darling of Bulletin Board Morons, brokers looking to earn 5% on the next placing (so writing ramptastic research reports today), avid broker report reader Paul Scott and our own Malcolm Stacey, has served up results for calendar 2017 which will please everybody.Bulls will delight in headline sales growth, growth in adjusted profits and promises of jam tomorrow. Little trivial details like the nature of those adjustments, yet again restatement of prior year numbers, a big ramp in cost capitalisation and an ongoing cash burn are details that bulls can overlook. So folks like Malcolm will take comfort. For we bears, who have bothered to look at past year results, the feeling is of "not again." The story is so reminiscent of every other year. IQE is profitable (in its terms) but does not generate cash, it hides costs by capitalising them, it has to restate prior year numbers, all profits are adjusted (i.e pushed up), the sunlit uplands are always next year.In terms of next year we are told that most of the business is going to grow at 5% with Photonics at 35-60% but Photonics is only 30% of the business, so we are not really talking about high growth. Yes, in a cyclical industry, IQE will grow fast but fast enough to justify a current year PE of 35? But, Paul Scott/ Malcolm/ the broker buy notes Paul loves so much and the BBMs will say "what about operational gearing?" which IQE always bangs on about although whether it understands what that means is another matter. CEO Drew Nelson compares 2016 "adjusted operating profit from wafer sales" of £15.5 million with 2017 "adjusted operating profit from wafer sales" of £24.5 million. This 58% increase in "profitability" compares to a mere c20% increase in wafer sale revenues. Cool. Sounds terrific - operational gearing. Great. Fabbo. Crack out the ouzo. However, even if you accept his numbers as gospel, and ignore all the adjustments he had to make to actually extract those numbers... and ignore the fact that the company has actually burnt cash (after adjusting for the placement) during 2017... and net earnings actually declined there is another matter.Even after all that, I think it's important to note that IQE capitalised £14.5 million of development expenditure this year, up from £6.3 million in 2016. Capitalised development expenditure and investment in other intangible fixed assets totalled £17 million, much larger than the acquisition of PP&E of a mere £11.3 million. Remember that this company buys equipment and, through its know- how, makes epi wafers. How can it justify capitalising so much development expenditure? This was highlighted by Muddy Waters in its report. And it's a big part of why Drew Nelson's argument relating to operational gearing is just hyperbole... strip out the capitalised costs and there is almost certainly NO operational gearing in this company (or indeed its place in the supply chain) without epi wafer price rises.This is why Morgan Stanley's argument about tightness in the epi wafer sector is so very important, but apart from the Morgan Stanley report last month (which was the reason for the rapid appreciation in IQE stock), there is no evidence of epi wafer tightness. And if prices don't increase do not expect operational gearing here - and that marks the valuation of a company that still can't generate cash and whose adjusted and restated results year in and year out drown in red flags, as just absurd. Read beneath the headline spin and these results are a win for the bears."

[dr_smith] 01/6/2018 10:50

Thank-you for posting mf.
I and others of us feel the unquestionable techie skills/foresight needs to be harnessed/balanced by business skills.
My impression is purely as a PI never having met BOD, so interesting that the fund manager, has same perspective, as you point out:

“... sadly, the chief financial officer [Phillip Rasmussen] who was a very good communicator with the City was killed over Easter. He was a numbers man who learnt the technology rather than a technology man who happened to speak numbers and I think that he will be a big loss.”

[solderflux] 01/6/2018 10:34

Feels they are closing pretty fast now. Perhaps they have sniffed they are on FCA radar?

[solderflux] 01/6/2018 10:27

Shorts now down to 8.42%.

[adejuk] 01/6/2018 10:25

so he's moaning as well !!
will they ever learn?

[mad foetus] 01/6/2018 10:04

https://www.trustnet.com/news/815849/four-uk-value-stocks-mitons-jackson-has-bought-held-or-sold-this-yearExplaining why he has sold IQE and the gap left by Phil. It seems that we desperately need someone who can communicate with the city.

[a0469514] 01/6/2018 09:33

Of course people going on and on about shorting is EXACTLY what the shorters want you to do. You are playing into their hands.Will be attending the AGM with Mrs Xylos. Looking forward to it. Not visited Cardiff very often but there are some very reasonable hotel deals there at this time of year. Still waiting for our letters of authority though from the brokers. Perhaps we will meet Mr DS. It will be like meeting royalty! It is funny how you build up a mental picture of what someone will be like from their posts. Probably totally wrong!Xylos