Member Info for Basscadet

Thanks for posting. I hadn't spotted the presie.

I am of the opposite opinion but there is a lot of subjectivity in the appreciation of sound.

Doom and gloom at the moment but I'm comfortable that what goes down must come up. More high volume customers will be qualifying for VCSELs this quarter which will build in resilience as well as increase profitability. Restructuring of the production sites will start kicking in as well. It's just that none of it is likely to show up significantly in the next report. We have to wait and possibly take some more pain in the meantime.

Since the same weakness affected everyone in the supply chain it's more likely that you just can't resist a customer the size of Apple. I'm sure IQE was powerless to prevent what happened.

Is there a margin for error here though? It's only a couple of pence above the offer price.I would think the bidders will try to make sure it doesn't go above here. I'm not sure what tools they have to carry out such manipulation but they will do everything they can.Also, why would anyone buy above this price when there's a very good chance their shares will be sold at it in a few weeks time whether they like it or not?It would take very concerted buying by a very confident bidder to drive it up IMO. If it happens there's almost certainly another bid on but it has be a strong and committed rise.

Referencing memory prices but could mean some more bad weather over here.

Do abstentions count as voting for the deal?

I must admit VR and AR do nothing for me but it's interesting to see they are hoping to address large screen displays as well.

Also, use of GaN-on-Si for the LEDs might be of interest to IQE holders.

Fair enough and thanks for contacting the company.

It's a done deal unless another offer comes in. I don't think the board will have recommended it unless they already had the votes they needed to guarantee acceptance at the AGM.

Yeah this stinks. The only difference basically is that the board get to keep their jobs. Suddenly the offer values the company fairly?!?

The SP has traded at the offer price all day moving with the exchange rate. Albeit + 3p to 4p. Doesn't feel like anyone else is lining up a counter offer.

I'm of the cynical opinion that there's a sordid back room deal with Echostar included here I'm afraid.

Haha, check the RNS tab right! Well I think that's very disappointing.

I don't know but don't we have to wait to see if a formal offer is made before we find out the board's real feelings? They can't accept or reject something until then.

They can go down as well as up :(

Oh God. While austerity was the wrong thing to do in the face of the 2008 financial crisis, MMT is absolutely the wrong thing to do ever :S

Just a few.

Let's hope it goes up not down.

Let's face it. None of us have a Scooby's what will happen. I see the form 8s streaming in again like last time. I think that was positioning to make the improved offer from Echostar. Here's hoping. Different bunch of brokers and funds this time though.

I've finally had time to read the results in detail.

While I'm surprised that they are slightly worse than laid out in the last update (hopefully due to kitchen sinking) I remain excited by the technology. Importantly, the view laid out in the report is backed up by the constant drumbeat of product launches and previews from the wider markets for all IQE's key technologies.

Combine with, "Site rationalisation, increased production capacity and new products will deliver margin expansion, growing profitability and increasing free cash flow in 2019 and beyond," And we'll hopefully see a transformation of IQE's finances by the end of 2019.

Also interesting that the results were achieved with the same capacity as 2017. So none of the investment in restructuring and capacity build is showing on the bottom line yet.

The biggest worry for me is - committed 40M CAPEX and slow 1H 2019 vs. 20M cash and 35M finance facility. This doesn't rule out fund raising of some kind in my mind. Could be tight to get through H1 without needing more cash. 1H could have lots of positive news flow to keep us excited though if the company decides to announce customer qualification in Newport and plant restructuring completions.

There's lots of room in these results for spin and manipulation. I'm therefore surprised the SP didn't dip further. Was ready to buy a few more in the 60s expecting it would settle a bit higher later on. Didn't happen though. I suppose all this was baked in due to Apple and supply chain announcements over the last few months. The recent rise gave it some room to pull back. Overall it seems like a fairly neutral reaction.

I too am unnerved that the board hasn't come out strongly saying that the offer materially underestimates the business and think that the dividend announced with the final results will be suspended if the offer is recommended.

On balance though I don't think this offer will be approved.