Member Info for Alessandro

If you strip away the non-photonic related manufacturing, IQE still outweigh Landmark capacity.

If the exchange is the main issue, IQE should move the listing to the US.

@lordloadsoflolly

So why Landmark could pull off such a stunt with its share price but not IQE?

LandMark Optoelectronics valuation is insane.

Who is investing in LandMark and why are they snubbing IQE?

With such valuation LandMark Optoelectronics can easily raise equity to ramp up production capacity if needed.

Do they have any patent/knowhow to give them a moat? I don't believe IQE tiny debt is the reason for the much lower valuation. If an investor is willing to pour billions in the company, they may well be happy to pay £40m to extinguish debt and take it private. Why would an investor take it private for billions if the company is trading for just over £200m?

I have been scratching my head for some time now...

The share price butchering is benefitting the share buyback but the drop is gone way beyond reasonable.

I start to think there is something structurally wrong with this company. Perhaps the large ownership of Pentland is putting investors off. Institution may not buy knowing that the fate of their investment is in the hand of a single large shareholder.

The share buyback program makes it even worse as it inflates Pentland share of ownership.

Virtually the war is costing about $6-11 per day (per day!) to each American in employment. Some will have to wear their shoes till the soles of their feet are exposed before they get a new pair of trainers.

I know Americans won't see the cost of the war billed in their pay cheque but it signals more hardship to come.

It is crazy how much more trouble the US are after considering the monumental public debt.

As always, horses for courses.

Https://x.com/i/status/2031414313819287721

@blackBox7

Not a mention to IQE in the article though.

At 22.70p so likely a buy

Although I have to add, it seems more like advertising, so they may be far from working at capacity. Why the need to write an article on this?

@86KB

Sorry didn't see you posted it already.

4h ago

https://www.linkedin.com/posts/jutta-meier_rodney-pelzel-our-chief-technology-and-operating-activity-7437825056174444545-uifH?utm_source=share&utm_medium=member_desktop&rcm=ACoAAAmkcH0BEMfaVbQGa4ob1tN4kbEzWIa0X-E

I am looking at the broker rating over the past few years.

Canaccord Genuity had a target price of £1.80 back in 2018. Brokers are clueless lol. Must be frustrating to have studied economics to be wrong all the time.

I am surprised they are still in business, does anyone even care anymore about their forecasts?

Is it the UK or the US the primary mover of this stock?

Thanks prof. Found it. It seems to be holding well overseas. Good news, or perhaps any news (part sale, all share sale), will pour petrol onto the fire.

Does anyone have the "tracker" for IQE, which I believe trades on the NYSE? I may be totally wrong..

There is lots of complexity here, that's why it takes this long.

@Herbieridesaga

IQE does not have to trade below book value in order to be bough at book value, realizing a premium vs current valuation ('book value' minus 'current valuation' = Premium), if this is what you are saying.

A company can be bought out at higher price because an acquirer sees the value of integrating the company exceeding the the cost of the acquisition.

@lordloadsoflolly

I agree. Even when two companies in the same sector are compared on normalized revenue and profits, they can still represent very different investment cases depending on market positioning, strategic partnerships, and other qualitative factors.

One company may have scale (including underutilized capacity), patents, or long-term research collaborations with reputable partners that could justify a very different future valuation.

IQE peers have their valuations significantly higher. That suggests either they have a competitive advantage over IQE, or IQE may simply be undervalued.

@gotreal

you could have had the same argument with Tesla a few years back, astronomical valuation. My stand was that the valuation was absurd relative to revenue and profits and did not buy. Guess who was wrong and missed out?

I am not saying that IQE is the next Tesla, but for innovative companies, revenue and profits are meaningless, valuation is based on potential. The question is whether we are at a turning point, or if we'll ever be.

@Gotrader

well look at the current valuation of IQE's closest competitors...