Iqe Share Discussion Threads

[rivaldo] 13/9/2018 15:24

Great article above, thanks - common sense at last. coming from Cannacord:

"IQE is now qualified with 24 VCSEL chip companies and we estimate that only three or four of these are, or will become, Apple suppliers. This leaves around 20 suppliers for the Android ecosystem and many other, potentially much larger, non-smartphone markets."

With IQE having only addressed Apple, which has around 15% of the global smartphone market, next year the AIM-listed company "can start to address the other 85%".

With IQE shares now on a P/E for 2019 below 20x, he reiterated his 'buy' recommendation and 190p target price."

[bulltradept] 13/9/2018 15:17

boboty, not sure he has an agenda, the guy appears to know everything about nothing.

[blueflame] 13/9/2018 15:15

Hopefully we won't go too much lower after the positive news released by apple last night and the broker notes out today. Yes the interims were disappointing but that's all in the past now. Fingers crossed that sentiment changes soon and investors start to focus on the future & not the past. Too many good things ahead for this company we all know. This is no Carillion, it ain't going to zero that's for sure. This creates a dilemma for the hedge fund managers who are sitting on big profits at the moment. Do they risk giving it all back like a lot of us here did or do they bank their profits and move on. I'd like to think one of them will crack and then the others will be falling over themselves trying to buy back. Eighty odd million shares ain't gonna be an easy find that's for sure. I've topped up this afternoon...GLA.

[tomduck] 13/9/2018 15:14

From what I have read Crunk appear to be a crunt, or is that misplaced 😉

[bocase] 13/9/2018 14:28

Canaccord:

A very bullish note from them. Well worth a read. Seems the fund managers are reading it too...just turned positive.

[boboty] 13/9/2018 14:27

Crunt - just go through the holding regulated news service announcements - it will show that you are wrong. There is no rule that an institution can’t invest in a company where there is no cfo - if a cfo walked out with no succession planning that might be considered a risk but not in this situation where there has been a very tradgic unexpected death. I find it distasteful that you use this to further your adjenda.

[poombear] 13/9/2018 14:27

After Apple launched its new iPhone XS and XR range, there were positive implications for UK-listed semiconductor wafer maker IQE.

All three of the latest iPhones have ditched the fingerprint sensor and will use facial recognition for security instead, which analysts at N+1Singer noted would mean IQE's Vertical Cavity Surface Emitting Lasers (VCSELs) are in all iPhones now, having been just in the top-of-the-range X model previously.

However, Singer's noted that this was expected and makes up the basis for the much talked about ramp up in second-half volumes for IQE.

Analysts at Canaccord maintained its forecast the iPhone contract implies IQE can do twice the revenues it did in the second half last year with its largest VCSEL customer.

Canaccord's Paul Morland pointed out that IQE's share price has for some time now been almost exclusively focused on Apple and its supply chain, and the shares have fallen despite "perfectly respectable" interim results.

Part of this is that other Apple supply chain stocks have generally been weak, with the market read-across hitting IQE.

"We believe this ignores the fact that today, in VCSELs at least, IQE has no peers. This will of course change, but our view is that it won't be this year and it may not be next year," Morland wrote. He said rival Finisar is "being overly optimistic" about its ability to produce 6-inch wafers and may even need to outsource them.

"I believe the market's obsession with the Apple supply chain is misplaced as far as IQE is concerned and at some point the stock's compelling fundamentals will re-assert themselves," the analyst said.

"IQE is now qualified with 24 VCSEL chip companies and we estimate that only three or four of these are, or will become, Apple suppliers. This leaves around 20 suppliers for the Android ecosystem and many other, potentially much larger, non-smartphone markets."

With IQE having only addressed Apple, which has around 15% of the global smartphone market, next year the AIM-listed company "can start to address the other 85%".

With IQE shares now on a P/E for 2019 below 20x, he reiterated his 'buy' recommendation and 190p target price.

[lord loads of lolly] 13/9/2018 14:24

thecrunk - quite apart from the spelling mistakes, your comment 'UNLESS THEY ALLREADY HAD AN EXISTING POSITION. IT WOULD HAVE ALLREADY BEEN THROUGH THEIR RISK COMMITTEES' makes no sense whatsoever. If - as in IQE's case - a company finds itself temporarily without a CFO, then why would their 'risk committees' think it OK to invest even if they were existing holders? Any 'risk committee' worth its salt would see the position had changed and cease to invest until a replacement CFO was in post. So the fact that existing holders have carried on buying blows a huge hole in your dodgy logic.

[adventurous] 13/9/2018 14:16

and from that Canaccord note:

"IQE is now qualified with 24 VCSEL chip companies and we estimate that only three or four of these are, or will become, Apple suppliers. This leaves around 20 suppliers for the Android ecosystem and many other, potentially much larger, non-smartphone markets."

With IQE having only addressed Apple, which has around 15% of the global smartphone market, next year the AIM-listed company "can start to address the other 85%".

[bocase] 13/9/2018 14:16

The Crunt:

I've had enough of your drivel too. You will soon be talking to yourself.

Filtered.

[thecrunk] 13/9/2018 14:11

………;….UNLESS THEY ALLREADY HAD AN EXISTING POSITION...…………..

IT WOULD HAVE ALLREADY BEEN THROUGH THEIR RISK COMMITTEES...……..

[crazycoops] 13/9/2018 14:08

T Rowe and Goldmans seem to have been buying plenty in the absence of a CFO.

[thecrunk] 13/9/2018 14:04

without a CFO there can simply be no institutional buyers for this share. Its a physical impossibility. The only thing that's stopping the share price floating down lower is a lack of sellers that is all that is saving the share price from carnage now.

[crazycoops] 13/9/2018 14:04

Canaccord reiterates it's 190p price target. Here's why https://uk.webfg.com/news/broker-recommendations/iqe-supported-by-apple-facial-recognition-canaccord-sees-more-to-come--3485120.html

[thecrunk] 13/9/2018 14:03

No fund or investment company is allowed to take even a one pound position in a company that does not have a CFO, their risk policies and procedures as well as portfolio covenants specifically preclude it. Unless they already had an existing position at the date there ceased to be a CFO.

It is a shorters dream come true.

Drew Nelson should have made it a number one priority to find a CFO as fast as possible.

Of course he could not give two tosses.

[hutchmeister] 13/9/2018 13:35

That 400,000 at 0.8210 is a buy

[hutchmeister] 13/9/2018 13:16

Overvalued at 1.80, under valued at 0.80. Support at .80. Share price value should be in range of 1.00-1:20. 1.40 investment was shrewd. This will rise but expect a bumpy ride.

[hannath] 13/9/2018 12:51

Thursday 11:00 BST What’s happening● AMS of Austria was the Stoxx 600’s biggest gainer as Apple suppliers responded positively to the US group’s overnight launch of three new iPhones. All three models will incorporate a depth-sensing system previously only available in the top-of-the-range model that used sensors from AWS and STMicroelectronics as well as chip wafers manufactured by IQE.

FT comment

[yankeekraut] 13/9/2018 12:47

IQE board /CFO knew they would no longer be in complete control of their own destiny when they did the share placement. Nothing of significance can happen w/o TRP "buy-in". Being the largest shareholder, they can do that.

[richardc77] 13/9/2018 12:25

I think it is best to think of this as an opportunity not a disaster. Sure if you are in from lower down it is easier to think this way but tossing away big losses ona strong company with a bright future is nuts, this is not a broken company in any way, shape or form, just was over valued at £1.80 ish level is all with the reveunues that came in 2018.

[lord loads of lolly] 13/9/2018 12:14

rathean - IQE ALREADY turns a profit. Obviously scaling back capex would help in one sense, but their recent higher capex levels ensure they'll keep up with current & forecast future demand. Let's not forget, they funded expansion largely by persuading institutions to buy in at 140p. Not a bad way to finance growth!

[tomduck] 13/9/2018 12:13

Sheepherder 🤣 cheeky. Pondering all things 5G, and that the roll out is sooner rather than later, have you had a look at Filtronic and their Massive Mimo Antennae?

[sheep_herder] 13/9/2018 12:12

tomduck, I know your missus would like more than 6" but it's here to stay in the photonics world for a while yet. :-) They're only just moving to 6" across the photonics industry but 8" wafers may be used for RF and Power.

[rathean] 13/9/2018 12:07

Lots of VRS murmuring on this thread, one for the future for sure but until then multiple fund raises and a runaway valuation do not make a good investment story at its current share price IQE is much further along its growth story, and at some point far earlier than VRS they will either be bought out as market consolidation happens to offset pricing pressure, or they will scale back capex and actually turn a profit.The short play here could see this squeezed another 20%, but the moment that play ends and we get a short squeeze the share price will retrace north at a rapid rate of knots.Could be the imminent brexit deal will be the catalyst, all imo ofc dyor.