Iqe Share Discussion Threads

[lord loads of lolly] 28/6/2024 14:07

46maxon - the tax rules around Aim shares are quite complex, as not all companies qualify for exemption. The following link gives some details:

www.barclays.co.uk/smart-investor/news-and-research/stocks-and-shares/should-you-hold-aim-shares-in-your-isa/

Easiest solution - in terms of CGT - is to hold them within an ISA. But ISAs aren’t exempt from IHT.

And of course tax rules might change with a change of government, though unlikely to be retrospective IMHO.

[lord loads of lolly] 28/6/2024 13:58

It’s both margins AND sales volume that have been the issue here.

Both need to rise substantially if we’re to see sustained profitability.

[crosswires] 28/6/2024 13:31

Absolutely, volume and at a 25%+ level is required, not volume at circa 10-15% which we already know doesn’t lead to success for the SP!

[hammerd2] 28/6/2024 12:50

Crosswires - I agree with most of your last post, but it’s not margins that are the problem (if they were currently 50% IQE would still be in the red), it is, as ever, volumes.

Once volumes allow revenue to cover the fixed costs it’s gravy time.

[46maxon] 28/6/2024 12:17

As an aim quoted share, I read these are after two years from date of purchase now exempt of C.G.T.

[lord loads of lolly] 27/6/2024 09:17

crosswires - Seconded. I think you've summed it up nicely there.

Americo is a hard guy to read. Is his general enthusiasm & excitement re: the opportunities well-founded? Or is he a prize bull-xxxxer?

Sector developments certainly support his argument. But that's often been the case with IQE in the past - and look where it's got us.

I find sweenoid's ever-optimistic take on things impossible to fathom. And I've frequently called it out. Perhaps he's just a glass half full kind of guy. Whereas I'm more of a glass half empty chap. Either way, let's hope he's FINALLY proved right within the next 2-3 years.

I first invested in IQE back in 2013, then traded it, but overall added substantially between 2017 & 2019. To say my patience is wearing a bit thin would be an understatement. Barring material improvement by 2027, I'll be cutting my losses & moving on. But I'm still cautiously optimistic this rollercoaster of a ride might eventually have a happy ending.

Of course, there was ALREADY potential for a happy ending back in 2017. And I set some limit sell orders then which were very nearly triggered. But sadly I pitched them just slightly too high. And the rest is history (not to mention a fair degree of teeth-gnashing!)

[crosswires] 27/6/2024 08:35

Neil100

I understand where you’re coming from but the bottom line is nobody on here should pin their hopes or investment on any one poster. We’re all adults and when we’re investing our own money should understand what we’re doing even if the reality for some is “i’m taking a punt because it’s a semi conductor company in the UK and that sector is hot right?”

Sweenoid has no more idea than any of us if IQE will prosper and he has been as wrong as any of us since the peak year of 2016/17. I don’t mean this as a personal slight, it’s just a fact, we have all been wrong.

The sector points to lots of opportunity for IQE to take advantage of however as IQE have a track record of “not making hay” when the sun shines it is far from guaranteed. The reason the share price is 30p is that most investors do not see anything has changed since the last disappointment.

Can Americo with his fantastic industry contacts and understanding turn IQE into a company that shows multi year strong revenue and profit growth? It remains to be seen, place your money but don’t do it due to the enthusiasm of any one poster, especially when they have nothing concrete as evidence to support this.

The signs do appear better than at anytime since 2016 due to what Americo so often refers to as “Mega trends”. GaN and the sheer predicted rise in Compound Semi requirements but again as IQE have been operating on margins that haven’t allowed for profits in the past few years this doesn’t on its own add up to profit coming, or how he can conjure up his 30% profit margin target. There is also hope in Micro LED but I am fairly sure that will be the latter part of this decade before it becomes a very big market.

My advice for anyone who isn’t already invested is to wait to see if there is a July TU or failing that listen to Sept earnings for signs that any of this potential is translating back into current or coming earnings, because I suspect it there isn’t any good news and it’s just another vanilla update there will probably be a better entry point than here.

I remain fully invested but I do accept that IQE is risky and so it could drop 30-40% with the wrong news but could triple with the right news flow. If I wanted to be less risky I’d buy Unilever and Tesco with a dashing of BT etc but that’s not me.

To each their own…

[picobird] 27/6/2024 01:22

IQE interview: The geopolitics of GaN. (Rodney Pelzel, CTO at IQE)



[Not everyone would consider GaN as suitable for power at 650volts & above which is normally SIC territory. Then again my knowledge is very basic.]
One thing for sure is that the duo RP & AL will have enjoyed the Porto climate today which is my local area.

[neil100] 26/6/2024 22:01

I propose Sweenoid provides a business case for private investors to invest in IQE

I’m most interested to understand the foundation of the argument.

Come on sweenoid sell the IQE dream and demonstrate your investor prowess

[neil100] 26/6/2024 21:39

Americo and Rodney made clear statements that power is still in the future revenue.
Dont listen to me or others on this board. I identify Sweenoid as I don’t believe the person(s) behind the profile understand real business growth instead focus on heuristics.

Sweenoid gets way too much support on this board which suggests most followers are sheep and can’t be bothered reviewing the reality of IQE deliverables. These don’t seem to matter to Sweenoid as he//she/they love fiction.

Be careful!

[neil100] 26/6/2024 21:09

Americo continues to talk about POTENTIAL, Rodney says

For me GaN for power has a long runway but GaN for microLED is a really big opportunity

Which interprets as potential future revenue

Some on this board are still in America’s cloud coockoo land.

I’m a big investor (for me) and will retain my holdings of circa 170,000 shares. But everyone must be careful to listen to those with deluded expectations who claim to know more than others

[picobird] 26/6/2024 19:03

With the excitement of the IQE AGM barely behind us, we must now catch up with the latest GaN news…….

TI and Delta open GaN lab in Taiwan




Scientists test GaN chips inside nuclear reactor




International power conference will be in South Wales

[taffy24] 26/6/2024 12:13

IQE looks to US, EU CHIPS Act for GaN expansion

[lord loads of lolly] 26/6/2024 10:22

bbonsall - quite right! Grammar police are always welcome - or should that be "is"?!

jimboyce - agreed. I guess after years of IQE dodging harder-hitting questions, investors have simply grown weary of asking them.

sweenoid - see above. Also, whilst encouraging, "healthy & growing" could mean pretty much anything really. Growing by how much is what investors need to know.

[longtallsally] 26/6/2024 08:00

Good old Sweenoid 😂

[jimboyce] 26/6/2024 07:10

The AGM question and answer session seemed a little thin to me. It reminded me of a political question time interview. I came away without gaining any satisfying information.

[bbonsall] 25/6/2024 23:59

Guildedge
Sorry but I am a bit of freak with regard to English usage,
When we speak quickly it often sounds as though we say “of” instead of “have”. Being pedantic it grates on me when “have” is written wrongly as “of”.
“Questions we could HAVE asked that would HAVE got a meaningful answer.
“ if they were ahead they would HAVE said”
Sorry Guildedge blame my age and grammar school education!

[guildedge] 25/6/2024 19:59

So closing statement in July. If they were ahead they would of said. Meeting the brokers targets so far.

I am not sure what question we could have asked here that would of got a meaningful answer. They never answer market sensitive questions. We know where the business is at and what needs to happen. How long is the timeline for this? Based on brokers 2027-2028 to make a profit?

CMCx now over £3.That share keeps on rising.

[lord loads of lolly] 25/6/2024 17:55

IMHO, we learnt VERY little new from today's webcast.

Sure, there was plenty of "opportunity this" & "potential that". But as LTS said, nothing concrete as yet to back it all up.

I always think the body language & delivery can be as telling as the actual words on occasions like this. Personally, I felt Americo seemed slightly less confident & self-assured than previously.

And constantly telling investors you can't comment on individual supply partnerships eventually risks sounding more like a smokescreen than a legitimate commercial sensitivity issue.

At least Americo does seem to be sticking to his 3x revenue, 30%+ GM line. That said, I guess even if you thought you weren't going to hit it, you'd probably still go along with it until it became blatantly obvious to all & sundry you were delusional.

Still everything to play for here. I haven't given up yet. Equally, I'm no more reassured today than I was yesterday.

[longtallsally] 25/6/2024 16:25

Ok, so the business update is not really that is it, just more about the market growth, zero specific to IQE business. I expect some stopped asking questions because the answers are often woolly.or “we don’t comment on our customers…R21; It shows how far off radars IQE are that analysts haven’t got any questions, I guess you could surmise from that, they don’t buy in to Anericos 3x revenue story.

The bottom line is the only way we find out how business is actually going for IQE is when they update the market via a TU, earnings or the dreaded 7.00am RNS which over the past 5 years have almost always been very negative. Guess we will have to wait for either a July TU or Sept earnings to know if any of this potential is dropping to bottom line

[sweenoid] 25/6/2024 16:13

AGM WEBCAST

I think very encouraging, listen for yourself but key is recovery seen in H2 23 is continuing through 24. Some will say the enthusiasm of the CEO about prospects for IQE has to be proven, I agree but if after listening to Americo you don’t ‘buy’ into the story I suggest you move on 😉

EVERY single question asked was mine! That was good but it beggars belief that I appear to be the only investor interested enough to enquire- no questions from professional analysts present either !! 🤨

I for one was greatly encouraged and reassured by the update and the answers to my second question in particular

S

[longtallsally] 25/6/2024 14:02

I hope IQEs predicted revenue and profit jump are not tied into getting large grants because I don’t see it happening. I think investors are better off assuming that to be the case and be surprised if they come.

[wigoyle] 25/6/2024 13:49

I wish we didn't have this speculation about possible government grants. I think it sends the wrong message."Our Vision:Enabling a brighter future through the power of advanced semiconductors."WHY is this IQE's vision? Given that IQE has run like an NPO for 25 years, they might get a better deal if they registered as a charity."Our Mission:Our products are fundamental in the technologies we use in our everyday life ..."There's something really broken about this business model when this fundamental technology yields companies bigger than the entire FTSE, whilst the suppliers are looking for government grants. The BoD has not included anything about shareholder value in the mission statement.The only reason I don't raise these questions at the AGM is that we finally have somebody who at least appears to have some business acumen. I hope he is successful.