Member Info for Beamer21

Reporting Q3 earnings today after US close

Both the Placing and the Retail Offer are expected to be open to existing shareholders of the Company ("Shareholders") only

Anyone measuring IQE against peers won’t be selling imo…..be interesting to see if they raise guidance on 20th May….. based on LandMark’s commentary on 23rd April where they independently confirmed that global epi-wafer output is far below customer needs. In a supply constrained market, IQE’s constraint is not demand, it is reactor capacity. Every incremental reactor brought online at Newport converts directly to revenue above plan and I believe IQE have the largest global capacity

The hyperscalers are all raising capex guidance, the demand for IQE and their wafers is not cyclical and in fact the hyperscalers are saying 2027 going to be much bigger than 2026!

SLW - short term volatility is to be expected particularly as many retail sitting on substantial profit but the IQE narrative just got exponentially better and this deal will bring new longer term institutional investment which in turn will bring price stability on the march to fair value…… the US understand this market better and value quite differently based on forward metrics so todays pricing will be an opportunity that I expect will be bought into heavily

There’s a fair chance we could even close up if the US $IQEPF is anything to go by

Shines a light on UK based IQE and peaks the interest of a wider institutional and retail investment community

Circa 57p equivalent

Taiwanese and US investors understand Photonics and the semi space far better than us in the UK, take a look at Landmarks valuation compared to IQE….IQE far better and bigger yet valued at a tiny fraction

Macom at $22bn company just validated IQE big time

If the name was Nvidia and not less known Macom flags would be flying

IQEPF closed up nearly 19% following the news

Likely due to the US market understanding photonics better and the strategic value that Macom bring to IQE

Without IQE’s wafers nothing gets made and Macom just added further validation by securing their supply and Nvidia gave $2bn to Lumentum and Coherent to secure supply…..Lumentum are using the nvidia investment to build out a new fab facility and as such they will need more wafers……IQE and Lumentum recently extended their multi year supply agreement and the volume is set to increase

Average daily share price for March in the region of 24.5p so 19.8p not so bad give that context

Anyway from a strategic point of view the deal with Macom is hugely important

Roll on the next financials I think around 20th May

Now values IQE around £262m or around £276m on a fully diluted basis

Debt free, strategic supply agreements, world leader, largest capacity across the board etc etc ……too cheap and should be at many multiples of this if you look at peers

Forget the discount and look at what the deal actually brings…..look at the read across from Landmark today….this is not a small aim oil company raising money for another duster

Short term volatility as we are on aim after all but this will soon re rate

Should say $21.5b mcap

Https://ca.finance.yahoo.com/news/macom-enter-agreements-further-strengthen-160000950.html

It’s actually not

I don’t think anyone saw that coming… expect we’ll see some short term downward pressure due to the discount but the deal actually strengthens IQE’s position and likely starts strategic re rating now the balance sheet has been fixed plus another long term supply agreement/demand has been locked in alongside that with Lumentum

The read across from Landmark today is outstanding and proves there is a real global epiwafer shortage, IQE dwarfs Landmark on almost all capacity measures and the disparity between Mcap is laughable particularly when you look at revenue metrics

The UK just saw IQE as a distressed aim turn around but didn’t dig deeper…. Tech savvy overseas investors spotted it and drew attention to the opportunity

The bid process just got more interesting today

It’s mostly the institutions moving this…… cannacord appear to be cycling stock trading around their core position

It’s true photonic stocks globally have risen strongly but its not without merit on the basis the market is supposedly forward looking and what the article mentioned above probably misses is that without semi conductor wafer manufacturers absolutely nothing else…. No wafers, no photons no AI at scale

IQE is undervalued and it is in a rare position and importantly it isn’t cyclical it’s a critical materials infrastructure provider that has something that cannot be easily replicated at scale as it takes years and Lumentum just signed up again to secure their supply on behalf of Apple etc plus IQE have an active M&A process which I believe they will come out of stronger than ever

Contributing to todays shenanigans but as bets go I would say with IQE and their wafers sitting at the very foundation of the AI data centre scale up its a pretty safe bet particularly as Nvidia recently gave Lumentum who have a multi year strategic supply agreement with IQE $2b to secure photonic capacity - more wafer demand for IQE pending!

No other open market company has the scale and experience across all major epitaxy platforms

Is this an attempt at humour? IQE and their wafers sits at the bottom layer….without them nothing else can happen….maybe you should tell Lumentum

Nelson’s had nothing to do with today