The reviewer also notes potential bid interest from Intel. Here's some extracts from the full article: Http://www.spreadbetmagazine.com/blog/?currentPage=3 "James Faulkner on IQE - re-rating has quite a way to go Posted on DateThursday, January 22, 2015 at 1:03PM IQE (IQE) has been through a tough time of late, with industry de-stocking putting a major dint in its performance. But all that now looks to be behind the supplier of advanced wafer products and wafer services, which announced a very upbeat trading statement this week. The shares are now back where they were at the time I reviewed the company in our Technology Special back in June 2014, and the stage looks set for a re-rating. Revenue for the year ended 31st December 2014 is expected to be approximately £112 million, with second half revenues of c.£60 million indicating a pick-up in trading momentum. EBITDA is projected to be up by c.8% year-on-year at approximately £27 million, with second half EBITDA of approximately £16 million. Adjusted, fully diluted EPS for the year is expected to be up c.20% at approximately 2.4p. Furthermore, management also anticipates net debt at 31st December 2014 will be roughly £31 million, down from £34.4 million at 31st December 2013 despite £5 million of cash restructuring costs and £8 million of contingent deferred consideration payments. There is no doubt that this update will have reassured investors, as the numbers are in line with consensus forecasts. And with FY14 in the bag, the market can now look to FY15 - and the numbers leave plenty of room for upside. In the Wireless business - which remains the largest division (c.80% of sales) and where the group commands a global market share of more than 50% - there was “double digit” sequential growth in H2 over H1, and the group made a cracking start to the year by securing a major contract renewal, estimated to be worth over $50 million, with an important tier 1 customer. The Wireless division continues to enjoy a robust market backdrop driven by increasing adoption of 4G and LTE globally. However, a key factor in the investment proposition for IQE at this stage is its penetration of new markets, which will help to diversify the firm away from its reliance on the Wireless market. Chief among these new markets is Photonics, which grew revenues by 20% year-on-year. Demand for photonics products is continuing to grow as new and emerging technologies increasingly rely on the properties of light for a growing range of technological applications.... ...Researcher Edison is forecasting pre-tax profits of £17 million in FY15 on revenues of £117.4 million, although it admits that its estimates for flat Wireless revenues in FY15 “may be conservative”. Anyhow, the EPS estimate of 2.5p implies a current rating of just 8.8 times for what is a market leader in an attractive sector."
Terrific results from Apple
Amazingly good sales from Apple reported last night, easily beating forecasts: Http://www.telegraph.co.uk/technology/apple/11373454/Apple-results-Q1-live.html Given that IQE probably supplied every such device... and that they supply most of the Android top end competitors too, it's no wonder IQE had such a good H2 and the Board are able to be so confident for 2015.
Solar plant contract
Abengoa have been awarded a contract to develop a solar powered desalination plant jointly with AWT, formed by Kacst and Taqnia in Saudi Arabia. Taqnia of course own Solar Junction, so it's likely IQE will be providing the solar panel IP.... Details here: hTTp://www.utilities-me.com/article-3301-abengoa-chosen-for-solar-desal-plant-in-saudi/ And here: hTTp://finance.yahoo.com/news/abengoa-awt-develop-worlds-first-114600650.html As originally suggested here, with hopefully more solar power projects to come: http://www.taqnia.com/2014/EN/N13.html hTTp://www.taqnia.com/2014/EN/N3.html As Dexter5 put it elsewhere: "There is a lot of money to be made from solar for IQE not only in the Desalination plants but also in the Solar Power units once adopted see previous Management statements on volume/value of substrate per KW output .Additionally IBM are heavily involved with Kacst working on Capillary filters for desalination. They will naturally have a close working relationship with IQE/Solar Junction. IBM recently declared they are planning on spending some 6 billion $ over the next 4 years on GA substrates and vertical cavity substrates .They are looking for the next transistor breakthrough. This could tie in nicely with the trigate transistor that IQE was involved with jointly developing.IQE's patents and research would make a nice leap for IBM's research"
in today for an attempt on that 24p resistance GLA
RNS - Herald go above 5% today
http://www.investegate.co.uk/iqe-plc--iqe-/gnw/iqe-plc---holding-s--in-company/20150126070012H9212/ According to IQE's web site Herald last had 29,733,393 shares, so they've actually bought another 3.8m shares to get to their new holding of 33.56m. Herald are highly respected - this is an excellent vote of confidence.
The shorts now a negligible so won't make a huge difference - I believe what we will likely see now is the SP edge up on new contract announcements, the reduction in debt and revenues increase. If solar plays out then this could give us a big rise in SP. Absolutely no reason to sell IQE our money is sitting in a growth company that generates a good cash flow and makes a nice profit.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.