Iqe Share Discussion Threads

[knackers] 30/8/2018 09:22

A desperately weak article by IC - even by their standards!

OK, so what were the original motives that reverberated the shorts 'echo chamber' last year? Still valid are they?

Patently not.

If this company hadn't had the life wrung from it, where would the share price be now? IMO about a 20% premium to the fund-raising price.

But I believe the proverbial boot is now firmly on the other foot. The foundations are now laid and IQE is perfectly positioned to SIGNIFICANTLY disrupt this market. They have the technical lead, expertise, products and increasingly the manufacturing clout and know-how to do so.

'Jam tomorrow' perhaps but in the real commercial world, it's about spotting an opportunity, having a compelling strategy and executing on that - getting the go-to-market right. Yes, that takes time - but also money, intellect and balls.

Time and tide...

[richardc77] 30/8/2018 07:56

I shouldn’t take much notice of the IC or for that matter most journalism these days, it lacks any real research, detail or thought process :(

[william_quinn] 30/8/2018 07:50

Did the IC imply that IQE have taken 25 years to get to where they are today? Could they point out the UK company's that have pipped them to the post?

[richardc77] 30/8/2018 07:14

Breakconvention, you must do what you feel right doing, always go with your gut. You’ve posted 5 times for your farewell, almost a third your total ADVFN total posts so we get the message, now is the time to find somewhere else to put that money and another board to say hello to. Good luck

[bocase] 30/8/2018 05:37

Breakconvention:

Sorry to see you go. I wish you luck with your decision but on the other hand you know that sod's law always prevails in investing, ie the minute you sell they shoot up.

Yes the price action has been horrible but on the other hand, as Rivaldo's post indicates, according to Canaccord, we are now on a forward PE of 22 with 50% earnings growth. That really is cheap and we really can expect some positive share price action now we have H1 2018 results behind us.

[breakconvention] 30/8/2018 01:22

Buy, Buy, Buy, I've come to the realise that's all that's said on this board. Good luck all... but its time for my love affair to end.

[regasclockwork] 30/8/2018 01:07

Crikey BC, the next thing you'll be critisized [did it on porpous] for is using a small eye before mean't. Bloody nit-pickers!

Reminds me of the country yokel talking to the local squire.

He said, "Who was that woman I seed you with last night?"

Squire replies, "It's 'I SAW you with"

Yokel says, "I see, so who was that eyesore I seed you with last night?"

PS A thumb-up from me BC on all your posts and just because you are out of IQE at present doesn't mean you can't continue to express an opinion although some may think otherwise. GL buddy.

[mhassanriaz] 30/8/2018 01:02

Yes the message is very clear. At the current level it is cheap aa chips and I wait to add more below 95p If I am lucky. I see it hitting over 400p in the long run.

[breakconvention] 30/8/2018 00:51

I obviously have a spelling problem! But I hope the message is loud & clear.

[bukko] 30/8/2018 00:44

bc
Oh and ....let us pray (not "prey"). Byeee...and meant not mean't.

[breakconvention] 30/8/2018 00:34

The reality is that the UK is not the most attractive country right now, due to Brexit & its current 'FARCE' government - so In truth I believe its probably very hard for IQE to hire a decent CFO that would want to be based in Newport, Wales, UK.

[breakconvention] 30/8/2018 00:16

Please excuse the spelling error, i mean't to say 'rest in peace'. R.I.P Phil!

[richardc77] 29/8/2018 22:59

Nice indeed Rivaldo 😉

[rivaldo] 29/8/2018 22:51

Nice - interesting that whilst Canaccord have retained their forecasts for this year....

"For 2019 on the other hand, he revised his EBIT estimate 9.0% higher to £47.0m.

"We increase revenues to reflect the diversification of VCSEL customers with the addition of Android OEMs for 3D sensing applications and new guidance suggesting stronger Photonics margins. This leads us to increase FY19 EBIT by 9% to £47m. This takes EPS up to 4.8p which leaves the shares on a highly attractive 22x P/E for almost 50% earnings growth in FY19E."

[s2lowner] 29/8/2018 22:37

Not the most positive of interpretations of the results here:
hxxps://uk.webfg.com/news/aim-bulletin/iqes-bottom-line-buffeted-by-fx-pre-production-costs-at-new-foundry--3460294.html

[sheep_herder] 29/8/2018 21:20

Thinking quietly to oneself is the new thinking out loud Muhammad.

[mhassanriaz] 29/8/2018 19:12

Guys I am thinking out loud. Does anyone remember AMS invested $200 Mil in singapore.
hxxp://optics.org/news/8/9/30

IQE's next meeting is in Singapore. Is there going to be any joint venture or competitors meet on a common platform??

[dr_smith] 29/8/2018 18:29

A delay for a prefrerred replacement CFO is one thing but we have already had a long wait and they are still on shortlists. Grrrrr.
I can only guess that with key staff members focusing on
- new sectors
- client aquisition and liaison
- hub funding proposals
- New machine purchase/instalation
- New site involvement
- staff recruitment
- Roadshow preparation
- radio 4 interview ;-)

they, (particularly Drew) haven't had time for all, and interviews are time heavy for key staff, so something has to give and can imagine them taking the view of "look after the product and clients and the numbers will look after themselves".

Nice to see the recruited staff are to be 24/7, so those new toys will be chugging away round the clock, paying their way.

Any expanding company faces the question of how much shall we "gear up" in short term.
On one hand you, more kit sooner means maximising market presence, grabbing clients at opportunistic time and depriving competition.
On other hand,
High costs (equipment and staff) making financials/profits look poor in short term, loss of continuity of normal work (experienced/key staff spread thin not ideal) and
planned long term product demand can bottom out (e.g. new invention) become lower volume or shorter term demand, before long term assets have paid for themselves.

It is evident from everything we know, from R&R to IP acquisition, the IQE mindset is on investing for big returns in the future, "jam tomorrow" and not worrying too much about the short term and share price

As a long term investor in general context augmented by short term opportunities, I am happy with IQE's long term stance, just need the share price to be sensible for when I need to sell a few to fund life in general.

We now have 2019 guidance (in 2017 we had 2018 figures and yr 3-5)and 2019 was left open, presumably as much dependant on the new site progress.
I see 2017 guidance for 2018 Photonics was inc of 35-60% but now guidance for 2018 is tad lower at 35-50%, though perhaps offset by 2019 photonics of 40-60% (same as yrs 3-5 yr plan).

Each yr guidance is H2 weighted, I take this as natural order when expanding progressively each year, and not related so much to product launches, such as Apple
(though I know sod all about phone launch strategies/marketing).

Richardcc77: FWIW my google finance feed shows volume 15.7 coming out at 2.95* average (tad higher than 2.5* you mention).

Sources/quotes:

"The Newport pre-production costs of £0.9m (H1 2017: nil) were incurred on recruitment, increased headcount and training and have secured the human capital required to support and deliver the team for a 24/7 operation of the Newport Foundry."

"Head-hunters have been engaged in the recruitment of a CFO to replace Mr Phillip Rasmussen, following his tragic death while on holiday in Menorca on 1st April 2018.
Initial shortlist interviewing is complete and final interviews are scheduled for early September 2018. "

[coolhandfluke] 29/8/2018 17:48

Soon be St Ledger day.

[bargainbob] 29/8/2018 17:44

As expected flat as a pancake or wafer.Let me know when's it's 90p guys.

[jimboyce] 29/8/2018 17:12

Also alot of action occurred after the bell.