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I don't know Stockviews but I am familiar with Tom Winnifrith and wouldn't describe him as "the most excellent". He gets it wrong, like most people, and he often resorts to colourful exposition for self-aggrandizement. But to his credit he has exposed the occasional crook. Anyway, as I said, I shall stick with the company and directors who have legal fiduciary duties unless I have solid information that causes me to change my mind.
The PE ratio I just read is 68.67, presumably based on yesterday's close. I read Simply Wall Street's recent evaluation of 80+p per share. All this just underlines how share prices can be affected rightly or wrongly, perhaps in this case, on an over reaction to an analyst's note with a further speculative comment. Investors have more or less been promised a sparkling set of financial results in March so there is a conflict here, and as a shareholder I see no reason not to take the company's view at this point based on the information I have.
I have read that it is based on a report to short the stock commented on by ShareProphets. Does anyone know what the substance is? Why? WTF is going on?
Why is the price going down. I bought in at 75p yesterday based on the company's reports...
But TonyBoy, IQE is not the first company to fall to such depths. Many have in the past two years, at least some of which can be attributed to Brexit. And some even have good corporate comms and investor relations departments. Still, IQE definitely lacks proactive and reactive communications. It is not communicating its vision well at all and keeping shareholders informed of its progress when a smidgeon of reassurance would go a long way.
I have read with interest the many views about how the share price could be given a boost to change direction to previous levels. I can't see writing letters to executives who control the company being effective, but if a shareholder with a contrarian view could be found—one with credibility and concrete notions of how to take IQE forward—that could take the company and its share price in the right direction. The "shareholder" is usually a large concern with gravitas. If someone knows someone who knows of someone in some organisation that owns a big chunk of IQE…
TonyBoy, IQE doesn't have the PR savvy or investor relations nous to follow through on your suggestion. If it does possess the ability, it is very latent, as I haven't seen any evidence. Apparently IQE has done roadshows, which were obviously a huge success and investors couldn't stop talking about them…NOT. Seriously, IQE has poor IR and PR. One segment it needs to wake up to are the larger number of small investors since the introduction of SIPPs, who need reassurance their pension investment is safe.
That doesn't sound good for the industry, including IQE.
The strange behaviour continues on the last day before ex-div day. I have searched for news to determine the reason but can't find any. One of those anomalies, perhaps.
Good point. I was of the opinion that the SP would hit 150 today but with the drop it might fall short of that, maybe even far shorter, as the market is so down.
Yes, I have checked--the ex-div date is the 20th.
Ah. Have I gone a day forward? Can the share can still be bought tomorrow for the dividend?
Well, that was a load of shite, today. Why the heavy volume? Why did the price drop on a divi-deadline day? The future is looking bleak, which usually sends the price of gold up… Now, the share price will fall by the dividend tomorrow, which is normal, but something is odd, although, these are odd times.
This is so strange. The price drops on deadline day for the dividend from a company with more than 2x div cover and three yearly dividend payments with the price of gold looking like it will increase.
My view is that this share is undervalued, and I can see daytraders range-trading this between its current price and about £6.10. I would like to see this cannon back up but with the Brexit vote looming amongst the China-US trade fog it makes it even harder to predict. Of course, if we could all predict...
Yes, I hope they are right. What I would also like to see is a IQE hire good salespeople with proper briefs to target those companies who can benefit from its technology and supply components directly to them.
Odd, isn't it, that when IQE is linked with Apple it didn't really have too much effect on the SP in recent months when the company's profits were soaring. But when Apple's SP starts dropping, so does IQE's and even lower, This is despite Apple being only one indirect customer. The correlation seems skewed.
I don't get it, either. As for potential: I bought this for just under £2, after it has slid from a far higher price owing to "losing a big customer".In the company's last report they said they were working on getting more customers and closer to securing deals. The price has continued to fall since then. Very, very annoying.
* Company is a major supplier to Apple
* Joins Apple suppliers feeling pressure (Adds Dialog Semiconductor, analysts, background, updates shares)
By Kirsti Knolle
VIENNA, Nov 15 (Reuters) - Austria's AMS, which makes facial recognition technology, became the latest Apple supplier to cut its revenue forecast, adding to growing evidence that the latest iPhones are not selling well.
The Swiss-listed group cut its fourth-quarter revenue outlook by 15 percent and pushed back its medium-term targets, blaming "recent demand changes from a major customer".
AMS, which specialises in sensors, did not name Apple as the customer, but analysts estimate that the U.S. giant accounts for 40 percent of the Austrian group's sales.
Apple shocked investors two weeks ago with a lower than expected sales forecast for the Christmas quarter, prompting suppliers including U.S. firm Lumentum, British chipmaker IQE and screen maker Japan Display to issue warnings that pointed to weakness in new iPhone sales.
Like Lumentum, AMS supplies Apple with software components needed for its FaceID technology.
Anglo-German chip designer Dialog Semiconductor, which struck a $600 million deal with the U.S. tech giant last month bucked the negative trend when it said late on Wednesday it does not see a drop in demand from Apple.
Dialog justified this by pointing out that it supplies many more products than the latest iPhones.
For the past year, investors had largely been willing to overlook stagnating unit sales of the iPhone because average selling prices kept rising. But Apple now faces fierce competition from mid-priced phones from makers such as Xiaomi Corp.
The California-based firm started selling its latest phone generation, the iPhone XS and XS Max in September and the XR model last month.
The new AMS guidance suggested between 11 and 18 million fewer iPhones would be produced in the fourth quarter than an initially estimated 77-82 million, Credit Suisse analysts said in a note to customers.
"This is largely in-line to read from recent Lumentum warning," they said, adding the Lumentum guidance would have implied an impact of 15-20 million iPhones.
VOLATILE SHARES
AMS shares gained as much as 6.4 percent to 29.65 Swiss francs after a steep drop in early trade.
They have lost nearly 30 percent since Apple's latest earnings release and are down 70 percent since the beginning of the year and some investors see a buying opportunity, said traders.
AMS expects revenue to come in between $480 million and $520 million in the three months to Dec. 31, compared with the $570-$610 million it forecast last month.
The adjusted operating margin for the quarter is expected to reach the low to mid-teen percentage range after previous guidance for the margin to rise to 16-20 percent.
AMS also abandoned its 2019 revenue target of more than $2.7 billion, saying it now expects annual double-digit revenue growth for the coming years.
Share prices do not equate merely to balance sheets and profit and loss accounts. If that were the case, a lot of high-tech companies wouldn't have lasted long after their public listing. IQE has been a share for day traders for some time now. It's prime material, based on its fluctuations and volume. That trend continues, and this may help see it rise to historic levels earlier than expected. So long as it is partnered with faith in the company. Once that sticks, you can say goodbye to the shorters. Faith in the company and belief in its products are the driving force of any stock.