Member Info for Basscadet

I don't know. I have some sympathy for those fearful of falling further under Chinese dictatorship.

As long as the mine gets built I'm sure anyone here now will make money if they do nothing. The question is will it? I used to think it was a no brainer but it's a real question now. I can't see any way the market will improve during the quarter. Trump has painted himself into such a corner his only option is to smash everything to pieces in a futile attempt to shake things up and he's likely to do it. Here, we have a government hell bent on a suicidal idealogical project that is only going to make the business climate worse in the run up to Oct 31.

Unfortunately the company has not articulated any plan B.

Can it be described as a gift when it was money we were due to pay on sales that have now not been ordered?

Maybe ' dots of comfort ' even. :D

From today's RNA...

"any other potential new customers with whom the Group is in early stage discussions."
... and ...
"the plant remains at our disposal and fully capable of producing high quality nanomaterials for use in a number of electronics applications."

There are some conversations ongoing at least and the plant is not highly tailored to producing a single product for a single customer.

Oh well. There's no such thing as bad publicity I suppose.

Up until now VCSEL production has been heavily weighted for one customer - Apple. Now we have diversity and are starting to penetrate the much larger Android market. There's definitely significance to the RNA.

Well it's all good news at the moment. Starting to think the company might issue an upgrade in guidance soon reversing some if not all of the damage done by the trade war related downgrade.

AMS results are excellent today as well. Not only that but they are upgrading their Q3 forecast by 50%!

A rare piece of good news :-)

More significantly, supply chains hopefully re-establishing themselves providing greater stability going forward.

Today.

Because $6Ms not much to run a company that's got clinical trials to plan for next year? The deal with Jazz could fail at the IND stage. That's a worst case scenario but I think the market would feel much happier once the first milestone is achieved. Not that I don't think the company's undervalued. £13M market cap after last week's RNA is ridiculous. As long as the deal progresses even a small placement wouldn't hold the sp back from going much higher than here.

The RNA stated that there might well be a placing on the way. It's important to remember that the deal is only worth $3.5M at the moment. I'm sure the SP will improve as those milestone payments come in. Drug development takes years so it could be a long wait.

While the figures in that write up will look very different after yesterday's announcement it did say in the RNA,

"The Board continues to be in active discussions with shareholders and third-party healthcare specialist investors regarding longer-term funding of the Group. The Company will provide further updates in due course."

That will inevitably mean a smaller share of the pie for current holders but it now feels like it'll be a much bigger pie.

Got a small amount of these at 42p and thought I was going to have to wait a long time for any return after the accounting accounting hiccup a couple of years back.

The terms of this deal look amazing though. It shows the value of the work done at REDX that they can attract $200M for one molecule. I was surprised when they got $40M for the BTK inhibitor.

This deal should see the SP at multiples of where it today. I'm not one of the people who think it'll shoot up to $200M as we don't know the timetable for development. On the other hand if it's successful there are royalties to follow!

Sounds like there are other areas of collaboration in the works with Jazz, the porcupine thing is back in testing this year and other molecules are in the pipeline. The future looks exciting again for REDX.

The Runcorn plant is for making novel 2D nanoparticles Nige. Not dots.

I really think Apple's in big trouble. Business model broken. Slipping into irrelevancy.

Well it can't be bad news for IQE but there will be some lasting damage. Real orders must have already been deferred or cancelled for the company to put out the statement they did the week before last. The market will also remain cautious. Finally, it's only a temporary change. However, now the electoral cycle is getting underway, the trade war is hurting voters in key swing states and Trump's polling numbers are awful I suspect things will get better with China from here until we know who the next president will be.

That's very reassuring!

Thanks for your impressions Qd22.

It seems clear that all electronics are about to undergo a transformation from silicon to compound silicon. The scope for a company like IQE is absolutely massive. It's great to hear that they see the size of the opportunity and that they're going for it.

The trade war will only be a speed bump on the journey. It'll cause delays; and shake up the supply chain, winners and losers a bit. A painful speed bump now and let's hope Trump gets unceremoniously booted out next year but as the various markets start to take off it will be a distant memory. In the meantime it presents a difficult funding challenge for the company. I'm glad to hear they don't plan to do any further fundraising. Hopefully they can manage costs carefully and avoid that. If so, next year the SP will hopefully be where we were all hoping it would be now.