Member Info for Theanalyzer

This company is a dog.

You might make a trading profit if you timing is great but the reality is that all it does it spend cash and issue more shares to fund the losses.

The market now is so small that even a small placing about enough to fund six months administration costs results in huge numbers of shares being issued.

A few positives to start

This is gunna blow
Rocket is ready to lift off
The train is leaving the station
Market market can hold this down much longer
I am holding onto my golden tickets
Shorters can’t holder this baby down for ever

Why are holders of bargain shares always so desperate to pump up the share price? Why not just accumulate them at a cheap price and make a bigger profit?

This will need to raise cash again very shortly.

Phillite UK is still not paying debts which are now very old nor is 10 year loan note making any significant repayments a year on from the sale of business. Asset cover from above two assets plus goodwill (for a massively loss making group) is in reality illusory.

Today the markets have valued FVR at £11.3 million based on last funding round not your £700 million to £1,000 million.

The joint venture has lost money for the last four years . The joint venture partners have walked away for nominal amounts leaving IQE with the loss making business with a large negative net worth how is that a good deal?

CDSC privare results are shown in notes to the annual accounts on page 142.

2018 revenue was £4.428 million and loss was £5.006 million up from a loss of £1.431 million on turnover of £10.373 million.

In other words a real dog.

So if nothing changes in 2019 IQE will have 100% of losses of £4.4 million no wonder they only paid 3 dollars for the 49%.

For a company with a previous high market cap they probably borrow stock and use CFD

The retail punters buying in may well regret their punt

Muddy Waters have a pretty good record of picking targets. The rebuttal from Burford this am was weak. In any case market has already decided to sell.

Muddy Waters are very successful short sellers - read their paper it looks pretty solid challenge

The official FCA short list which shows short positions greater than 0.5% does not show Yu.

The simple fact is there isn’t a real shorter conspiracy. Just a company trying to turn itself around from a loss making business in a competitive market where some sellers have lost patience / don’t believe the story any more and have sold.

If you are a real fan buy now whilst you think it is undervalued and give thanks to the evil shorters for saving you cash.

The company has been a loss maker for all but one period of its existence.

The industry is highly competitive and low margin as Yu is now discovering.

I am not short but I am not looking to buy either.

Do not panic - I think you need a reality check.

The company expect as an adjusted EBIDTA loss of £2.5 to £3.0 million. How is that not a loss making company?

It is still running off poor margin contracts and revenue growth is slower than expected so don’t expect a rapid return to profit.

The loss before tax will be higher after deducting amortisation costs and almost certainty deducting the negative adjusting items.

Also looking just at the stated cash position is too simplistic. You will need to look at changes in working capital when the interims arrive. At last year end, cash was up, debtors we’re down because of better debtor collection but creditors had increased massively because they presumably paid creditors less rapidly. The delay in paying creditors will have unwound this period and the benefit from better collection won’t be repeated to same degree.

Simply put If you make trading losses sooner or later it impacts cash position.

It isn’t a fiscal change. It is an accounting standard charge that impacts almost every company. The new standard is more proscriptive on when revenue can be recognised. It doesn’t obviously change when the cash is received merely when revenue is booked.

Really, why?

It has material uncertainty over going concern and is a serial loss maker.

It is a risky punt at best.

Opti revenues take time to build as explained by the company in its numerous presentations.

The fact that so many major companies are willing to fund development of product and share potential future revenues is because they can see the size of the prize.

The valuation did get ahead of itself but revenues have now started to build which will reduce cash burn.

I am holding for now what Smith 76 says.

Ian B
The auditors consider all evidence available at the date of signing their opinion ie July 2019 including auditing post sheet events that are disclosed in the accounts. They also audit forecasts produced by management up June 2020 as stated in the accounts and their opinion.

So they would have been aware of the new deals announced yesterday but still highlighted material uncertainty over going concern.

You may still be right but position is less positive than you are trying to make out.

Smith76. Are there any shares you actually like and post on?

Ragnarlothbrok i hope you understand that if the decommissioning liability needs to be significantly increased that it will reduce both net assets significantly and hit ongoing operating profit as well through increased costs. It will also damage investor confidence making it harder to raise further debt and equity.

The company chose to adopt IFRS accounting policies. The auditors role includes ensuring the appropriate application of those standards. It also includes auditing the estimates inherent in those accounting policies including the application of professional scepticism i.e. making sure estimates lie within a reasonable range of outcomes. Considering wider industry estimates for such estimates is a key element of such a process.

So auditor is very much in the frame and this estimate is a key audit matter in their audit opinion.

So SurreyCarrie you are simply wrong.

I don’t think institutional investors like a company more simply because you undertake a 100 for 1 consolidation

The Sheik buying a significant stake is however more interesting