Be civilised please The tone of many contributions is unfortunate. The internet (and social media generally) seems to encourage language that would not normally be used in a face to face conversation. This sadly obscures valid but opposing points of view. Dave Sweeney and Eagles have very different approaches to valuation, I may hope that Dave is right, but Eagles nevertheless makes valid criticisms. There is surely room for both.
Re: What a shame It's strange the way you and others choose to regard my responses to slurs and insults that followed a couple of entirely factual posts I made this morning about your favourite company, caesar. I wasn't boasting - just reporting my situation more accurately after being lumped in with about a quarter of a million other qualified accountants aab loathes and detests because we're all supposedly dishonest. He's too dim to have realised I was actually on the same page as him in being disillusioned with the way the accounting profession - more particularly the big firms - conducts itself today.I am not dishonest but I could name a few people you hold in high regard who are. There's ample evidence to prove it too, but a lot of people refuse to consider the facts. People appear blinded by the apparent certainty of riches coming their way. Those who have promised such riches will, I suspect, have long gone with their money in the bank well before it happens. Nothing in life is a certainty except death and taxes. I certainly would trust assurances given about a future he or she has no control over by someone who had benefited materially by 'bigging up' a company's prospects and numbers many times in the past, always being a seller for whatever reasons that don't change the fact he or she has cashed in chips whilst telling others what a great investment the company's shares are. Try envisaging IQE's performance in 2017 if the auditors hadn't been switched after the year end and the new ones convinced last year's numbers should be restated downwards. It isn't that difficult. The year on year comparisons would have gone down like a lead balloon. As would the level of debt have gone up had another pile of newly created shares not been issued to fund managers (investing other people's money) to raise £95m needed to pay off ever increasing debt.IQE might eventually deliver what you hope for, but there's a material risk it won't with current management at the helm and the company so dependent on a few mega customers who rate the concept of money a lot higher than loyalty to key suppliers. If you're playing poker with the high rollers, expect to be fleeced eventually if you're only ever dealt a small pair and one or more of the others always holds a straight. Your comments won't put me off, caesar - the shame is that you don't suggest to others they challenge my views using facts and logic rather than insult me for having opinions that differ from theirs. Facts backed up by reasoned opinion based on past experience are what I try to present - the fact my views about IQE tend towards the negative is because that's the way I see the situation. Put simply, on all the evidence and taking into account all the risks, the shares are significantly overvalued. As long as there are more people who believe IQE's constantly increasing number of shares in issue shares represent good value than don't (the strain on EPS gets bigger with each new issue) the price will maintain its artificially high value. Did you not find it a bit strange that Dr Nelson should choose to carry out a 'retirement planning exercise' that resulted in him selling 5.8m of his shares at 109p, some 2 or 3 months ahead of telling so-called 'professional investors' (of other people's money) a pile of new shares were good value at 140p? He can surely have hardly have believed his luck that almost everyone seemed to have missed what actually went on with EFH in 2014 and bought the shares at up to 180p or whatever they were marked up to at one stage recently. I can recall blinkx doing the same thing - never ever being worth anything like the price the shares were driven up by something approaching hysteria. There still poor value a few years later at a price that's about 10% of what it reached back then. jmofwiw/dyor
Re: Phew, 36 chats! Thank you for your time in even reading half of it, WS, I suspect you got a lot further than normal... "Whatever is in the other half, I do not need to know. " Oh, I think you do, and you should set aside a little time tomorrow to finish it.I didn't even talk about what I thought was the most exciting part of the announcement - the concept of replacing the 3 chips in the Front End Module of a phone with ONE chip doing all 3 core activities... now that will be hundreds of millions of dollars when adopted. Did you read that far down the results announcement?? Or did you only do the upper summary before nodding off for a well deserved snooze??"Happy to be stupid, happy to be ignorant" I never mentioned anything bout this but clearly you are concerned about your generally consistent lack of intellectual depth??Apple have hundreds of billions of dollars and can throw it at whatever they like... but I don't perceive that as a threat on at least a 3 year view FWIW.I'll take my chances (without the need to heed any of your patronising little lectures) and actually I made out superbly well in IMG during both periods in which I was a shareholder, but I had long since come to the conclusion they'd lost the plot well before Apple pulled their plug. One of the better decisions I made was to reinvest my 18 bagger in Microsoft into IMG and make a further 3 bagger of the proceeds, but that's nearly 20 years ago... I had another 2 or 3 years holding the shares quite a long time ago before I decided ARM and our friends Autonomy were much better bets (and so they proved).Best wishesMONTY
Re: Phew, 36 chats! Monty - Just seen your message, read it to about halfway, then gave up.Whatever is in the other half, I do not need to know. All I want to say toyou and others who remain stubbornly starry-eyed, is have a look atIMG - the dream that became a nightmare.Happy to be stupid, happy to be ignorant, meantime making some moneyelsewhere. Yes, believe it not, there are other shares beside IQE.Biggest mistake private investors can make is to put all the money onone horse. This is strictly forbidden to professional Fund Managers.Cheers and good luck, you may or may not need it. Apple may alreadysecretly be planning in-house manufacture of VSCEL wafers, it certainlyis not beyond their wit to do so...or is it?ws.
What a shame Don't give up the day job yet. Does your boss know this is how you spend your time when you're supposed to be working?Why does someone who purports to be such a counsel to the individual investor make such patronising comments? Reasoned analysis or not (and for what its worth, I actually pay heed to all sides of the story, including yours), the childish way you attack others (and please dont pretend it is only in retaliation) is puerile at best and simply destroys any credibility you otherwise display. Sensible investors do understand risk (and there is no dividend or steady return guaranteed at any time by an investment such as this) and evaluate all opinions, but it is increasingly impossible to take anything from such bilious nastiness.
Re: Oh Fantastic - seadoc Eagle51 - You were not being civil. You were being pompous, patronising and boastful which are your go to positions. Why on earth do you think anybody would be interested in your personal achievements? Lets face it your about as popular on here as a fa.t in a spacesuit !! Considering you dont care what I think about you or your profession you spend a lot of time trying to justify yourself and your profession.For the record not that its got anything to do with you, my position in life affords me the luxury of not having to have a boss to answer to. Intellectual Pygmie - youre so funny
Is growth stock IQE plc the tech buy of the decade? [link]
Re: Phew, 36 chats! Read through the bulk of the messages.Too much starry eyed drivel from some of the correspondents.Reality checks are in order here. Great potential to lose moneywhen starry eyes block out hard facts.Cheers,ws
Re: Phew, 36 chats! WSI think the share price fall both yesterday and today actually has really at least as much/more to do with Facebook being hacked and the huge resultant pull back in tech stocks and market indices over the last 48 hours... but then again you wouldn't have noticed what's been happening in the wider tech market or how it's pulled down the leading indices. Some may be that short term investors think IQE's high enough on 3.4p of earnings and a 130p share price. I don't think most people have the slightest clue what they're looking at, nor the patience to read Drew Nelson's statement or to try and absorb the intricacies of what is therein. I have tried to do so myself over the last year and a half, I hope I'm getting there but it's still a learning process and I doubt I will ever become technologically knowledgeable on the differences between various of the epitaxial processes that IQE dominate. In my own experience, when I first invested in the company, I think I bought 150,000 shares at 27p, I had no idea whatsoever what this company actually did, I just thought it sounded interesting. I've got multiples of that number now, so you could say that's because I've understood what the heck I own and realised that I really am happy to be a shareholder in this business. Very pleasing results IMHO, very encouraging for the increasingly immediate future looking ahead to 2018 and 2019, excellent progress has been made and further progress in 2018 looks assured. This was NEVER about 2017 or 2018 results, who really cares about them?? I don't as I've repeatedly stated. Hardly at all, because the company is like a truly specially gifted 9 year old child - clearly incredibly bright and gifted, that is undisputed, but far from ready to sit O levels, A levels, and gain a scholarship to MIT. Give the kid 2 or 3 years and he/she will sit them at 12 years old and will have a PHD by 18 years old. But like all gifted children, it will happen. A glib analogy, but a fair one. In the stockmarket of today, there are few gifted children like this one. It's about the company's earnings capacity from 2019 to 2022 and the market's valuation of that expected growth. This is where the big money will be made on the company's valuation, where the shares will go wild or go nowhere. That depends on the continuation of the company's progress and execution of its business strategy. These results were an excellent report on the progress made in 2017 towards that end. Problem is that most of the likes of you, E51 etc are so unimaginative about what this business actually does and where the world is going, because it's products are going to be powering the world as things like 5G come through, you are so incredibly unable to understand that companies only become valuable because they establish pre-eminent (world) positions in what is/will be needed now and next, your likes are so absolutely fixated with the now or in Tarred & Feathered's case the Then & Gone, you could never appreciate a good thing if it hit you in the face like a wet fish... Some of the stuff he's written today, his usual diatribe, is so totally clueless and laughable as to make me wonder what on earth it is with ex accountants that makes them so embittered?? It's a man's life in chartered accountancy...Fine, you have to pay a price to get aboard the train, I am happy to and have done so personally "in truckloads", we all accept that on 2017 numbers IQE isn't the world's cheapest stock, but 2017 is almost as far away from where this company is going in the next 2-3 years as the moon. The simple fact that today's results demonstrate, and there are lots of talk about them earlier, is that there is phenomenal operational gearing of a modest rise in sales (and I expect that sales will rise far more than modestly in times ahead) has on earnings, doesn't matter how you measure them within reason. Sales on a variety of fronts are going to explode over the next 3-5 years. NO
Re: Phew, 36 chats! Very comfortable with these results. Dave S s summary spot on. Here for the long term and know where this is heading and will buy more on weakness. Not interested in uninvested commentary especially from Eagle 1 and the equally vacuous ws
Phew, 36 chats! Just come in from a busy day outside. See 36 chats here to ploughthrough. May give some of them a miss, e.g. no need to read Old BrownOwl's messages (if there are any there), as they contain little of interest.,and there are others in similar category. Oh, I notice the share price down substantially, probably due to hardfacts (Results) not pleasing? Or otherwise due to poor quality ramps today? Cheers,ws
Re: Oh Fantastic - aab I see that Eagle in his erudite manner failed to answer his arithmetical howler. How could such an accountant, partner in a top four company, make such a mistake. What he didnt say is that the firm he worked for,was a small provincial office of one of the four. I am sure his partners, if he had any, would have been heartbroken when he retired.
Re: Oh Fantastic - seadoc Re "patronising diatribe of drivel" etc.alwaysabeliever, you need to calm down.
Re: Oh Fantastic - seadoc aab - I'm only ever negative about companies where the directors are economical with the truth and there is no cash being generated that's anywhere near the stated profits.Share prices are what people like you are prepared to pay for what they think is good value. As you clearly don't know how to measure this, all that you've so far enjoyed is luck that there are so many people around prepared to pay 70 times what are overstated earnings if you believed that last year's results were fairly stated (which the directors and auditors said they were).I was responding in a civil manner to what was a diatribe of insults to me personally and the whole of the accounting profession. Others might have been vaguely interested in my background as I am a persistent critic. I don't really care what you think of me, aab - you're just one of life's intellectual pygmies. Apologies to any pygmies that might be looking in. I'm glad you're not as badly off as you otherwise would have been as a result of your investment in this exciting company. Don't give up the day job yet. Does your boss know this is how you spend your time when you're supposed to be working?all imo/dyor
Re: Oh Fantastic - seadoc Sorry Eagle51 I forgot to click on read all I normally do this as the norm with your posts.IQE paid $5.9m for cREO. Based on the incorrect information that you used your sums were correct. Well done. As they say the operation was a success but the patient is dead !! Perhaps you should have done a bit more research prior to activating castigation mode. [link]