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Pound is creeping lower to $1.34 to the pound. Inflation fears! IQE still expected to grow revenue in 2022. Plus Iphone 13 now out. Maybe not as bad as it seems. Albeit their past performance leaves a lot to be desired. Not sure a lower pound will save 2021. 9 months already gone. Could add a few million to bottom line?
As long as they are breaking even it leaves some hope for the future. Especialy if they can reach 10m+ profit next year. No big sell off here. One shorter remains. Enismore at 0.91%. Plus any shorters below 0.5%.
This was always a concern for Paul Scott. He was always worried IQE was a capital intensive organisation. So any big increase in revenue would require investment of millions. Which is a long term business investment which takes years to recoup. In mean time products are shrinking and this reduces IQE orders as less material required. This is another reason a takeover is less likely due to investment required.
As you say market already aware of 30m investment. Problem is IQE never meet their sales targets. Something always goes awry. Credibility is shot! No new CEO announced either. Looking at late trading update in Nov/Dec for news. That or CEO.
Lots of people want this to go places. Many on ADVFN excited about 30m capital expenditure. They still gave to get orders to make these machine go into production. It will take a few months for news. Plus 5-6 months for machines to come online? Will 2022 change things? At best forecasts for 10m profit?
I agree on valuation. Iqe is very unproven and struggling to make money. You would only buy out if you thought you could add value or improve bottom line to make money. Iqe is an odd kettle of fish really. Not much will happen till new CEO in place. I wouldn't pay more than 20-30% over market price. I doubt many would sell at those prices. If they believe the 2022 jam story.
Am i on the wrong forum? I guess most people visiting here expect miracles. Perhaps in life the only true way to make money is grit and determination and doing the hard work. Others get lucky on shares. My new rule of thumb is sell after any ipo. As the shares often seem to tank.
4 trades today. Two are delayed buys. Bizarre how SP dropped before results and now shares soaked back up. Hold your nerves!
Edison site updated and revenue for year downgraded by 5.5m as 5G rollout now slower. PBT dropped from 2.5m to 0.1m.
Issue is this is the kind of shre where if revenues increase greatly rofit will quickly follow. The reverse also hits bottom line hard. Where will this bottom out? Are there any positives here?
I think if they can scale up manufacture then profits could follow. Problem is if it goes other way losses follow. Iqe has a problem of spending millions just to generate income. Should be a report from edison tomorrow? Usually 7-10am?
Good article from PRWeek. Mostly quoting the results. Results much earlier than usual. No operations have closed. I do wonder how much furlough grants they are still getting. Why could Porta never make these profits?
https://www.prweek.com/article/1726067/sec-newgate-reports-solid-h1-industry-returns-pre-covid-19-levels
Been drifting past 2 weeks due to a seller. H2 last year was stronger than H1. Plus numbers include 3 months of German firm. Debt is now almost 18m?
Still making money. No mention of a dividend. Australia star performer again. UK seems stagnant in terms of revenue.
Think there is a lack of trust from market as Morton still 30% shareholder. No sign of new funds biting here.
I was expecting share to be higher than this. Not as though they are losing money anymore. New operations doing well. Cost savings from office moves next year too.
Think you may have jumped in too soon. Definitely selling pressure today. They need a big revenue increase in H2 to justify these prices. It may come but nothing is certain. Iphone 13 seems very important to IQE now.
Until these things come it's likely they are loss making. 2022 may bring a possible profit. No dividend till at least then. With the usual 1% management share dilution. IQE just keeps failing to rise and be the star it should of been. Instead a loss leader for the big players.
Edison have updated their website and have not changed their forecast. See new report on their site. Mixed views pending how products rolled out and what products iphone 13 includes.
They seem to suggest IQE need news to shift SP here.
IQE stated a return to growth in 2022 at the AGM. So this means revenue will not pass 178m this year. It will need a decent bump to get to 175m. That assumes they don't lose any clients. Edison expected them to match H1 performance too.
Expect Edison to update their webpage tomorrow. They normally do after a Trading statement. I guess Edison will suggest revenue higher in H2 or they will reduce forecast. Can IQE hit 175m for year?
Least pound is below $1.40 to the pound now so that will help a bit.