SundayTrader
08 Jun 2018
Re: IQE trades Share price slippage relates to reports of a drop off in Apple orders to suppliers of iPhone components, and the growing view of "softness" in the smartphone market generally. Historically this has been a recurring theme for IQE, as a supplier to the suppliers, since the smartphone market exhibits typical product cycle behaviour - buyers naturally hold off buying expensive electronics when newer products are in the offing. So 2018 results for IQE are probably going to be no better than "in line". 2019 should be another matter.
shabby 2 sox
08 Jun 2018
Re: Investor presentations 'The only truth is the tape'.But which tape is that - the actual tape or the adjusted tape? It seems directors are winning against the adjusted tape but we are still running towards the actual tape.
soi
08 Jun 2018
Re: IQE trades 107.7 share buy.After about 112.7 +Hopefully short term but can never tell really.soi
eagle51
08 Jun 2018
Re: Trading Statement Re: "This was Dr. Nelson's statement last year:The first half of 2017 has been a very exciting time for the IQE Group. Overall, all business units have progressed in line with expectations, although the Photonics unit has been the stand out with continued strong double digit growth, accelerating towards the end of the first half. The Group has multiple high growth opportunities ahead............."......................the future is always exciting. What Dr Nelson DIDN'T say in this statement was that H1 diluted earnings per share had fallen from 1.43p in 2016 to 1.00p in 2017 (30%). He also didn't say this in his headline statement of operating performance in the RNS announcing the full H1 results, but the numbers are there when you scroll down to the accounts if you're not totally blinded by all the science in the book leading up to them:[link] was the year it was announced that the three executive directors were in receipt of remuneration packages that exceeded IQE's net profit for the year when the value of share awards - available for them to take on the company's EPS growing in line with RPI in the 3 years to 2019 - was taken into account. 67% of those shareholders who voted at the 2016 AGM voted against these proposals but their sentiment was ignored and the money was kept (shareholder votes on directors' remuneration proposals are 'advisory only' - a strange anomaly indeed). Note the subtlety in the announcement - 31% voted for them (seems likely to me the 31% was mostly made up of chairman's proxies): [link] Has anyone worked out how many shares have been awarded to the directors over the years, how many they have sold for how much and how many they retain (which should include those handed out to family members). It's worth doing, if only for educational reasons.One of these days the emperor WILL in fact be wearing the finest silks and all the cheering will finally be justified - numbers that don't have to be disguised will at last do the talking. Most likely imo it will happen under different management but one can never be sure because it involves the future and this is sometimes unpredictable.imo/dyor
Broncomaniac
07 Jun 2018
Re: Investor presentations Hi Dave,Why are the Board spending so much time meeting potential new investors? Suggests to me that either there’s another placement on the way to devalue existing holders (not that I’m complaining about them raising equity at 140p), or that they believe the best way for existing investors to realise value is to sell out to a higher bidder.I would prefer for the Board to spend more time delivering real growth in earnings and see the value of my shares raise on that basis and enjoy some nice dividends. Don’t you think that’s a better use of their time?
per ardua ad astra
07 Jun 2018
Re: Investor presentations “The only truth is the tape.”——-Indeed, soi. And I’m getting the distinct impression that some of us here are taking considerably more cumulative points trading it than one or two malcontents - who clearly sold far too early - took when they prematurely closed out their positions.As for great efforts and great results, I also get the distinct impression that if one or two here - particularly those on a whining streak - substituted their griping efforts for some trading efforts they might see a little more truth in the tape also.Still, each to their own though, eh?Cheers,
soi
07 Jun 2018
Re: Investor presentations The sp is dropping against markets rising.Makes you wonder.The only truth is the tape.soi
Muzzletoff
07 Jun 2018
Trading Statement I think someone has previously referenced this, but just for interest worth repeating that a trading statement is due out in July (last year 20th July).So in terms of facts rather than speculation, we will have some more specific guidance on turnover at that time, and perhaps some statement on meeting or beating market expectations:This was Dr. Nelson's statement last year:The first half of 2017 has been a very exciting time for the IQE Group. Overall, all business units have progressed in line with expectations, although the Photonics unit has been the stand out with continued strong double digit growth, accelerating towards the end of the first half. The Group has multiple high growth opportunities ahead, and in order to ensure future capacity is in place in a timely fashion to address H2 2018 and subsequent demand, we have announced an MOU with Cardiff City Region to secure operational facilities in a highly cost effective arrangement, together with initial orders for increased MOCVD capacity. In light of recent progress and its increasingly confident outlook, the Board expects the Group will now exceed market expectations for the full year and whilst it remains early into the start of the mass-market adoption of our technology, it is possible that with the current contract momentum, a more significant upgrade to current market expectations could be delivered for 2018."
winningstreak
07 Jun 2018
Re: Investor presentations Great efforts, without great results, share price continuous to loiter atwell below old highs.ws
shabby 2 sox
07 Jun 2018
Re: Is this Apple/Dialog Semi'r. news re... Thanks for your reply Frodo. It seems like operational qualification could be viewed in a similar way to companies with equipment out on trials with potential customers. I have investing experience of companies talking up trials which often either take a long time to come to fruition or do not lead to any meaningful commercialisation. I am not equating this to what IQE are doing but the statements on operational qualifications with new suppliers meeting Directors expectations leaves everything on trust so I would have liked a bit more meat on the bones. As you say we already have the guidance and will need to be content with that for now.
Dave Sweeney
07 Jun 2018
Investor presentations being very familiar and up to date with IQE’s technology and potential, the highlight of the AGM presentation for me was page 31It’s easy for investors to believe that management are not ‘selling’ the company hard and wide, look at this, they really are clocking up the air miles! and this information surely ‘puts to bed’ any suggestion that huge efforts are not being made to increase investor interest, I particularly like the emphasis on US investments.the way, tours booking up quickly, Hammerd and I just got the last 2 spots on the final tour of Newport facility 20th July pm Here’s what IQE are and have been getting up toExtensive global Investor Rela5ons programme• Key Objec5ve is to get as many large, long term Global Investors as shareholders• Met with over 50 UK and European investors to date in 2018• Met with over 60 US and Asian Investors to date in 2018• One week US non deal roadshow to US in April (New York, New Jersey, Chicago, Sante Fe, Salt Lake City, Los Angeles, San Francisco) mee5ng with some of largest global tech investors. Met 40 different ins5tu5ons during week.• Follow up investor conferences planned in Boston in June and August, plus repeat NDR• London investor conferences in June, July, September, including 14 investors next week• Now Covered by 8 broking firms including Ci5, Barclays, S5fel and DeutcheBankFull AGM presentation here[link] of how to book Newport tours are on the IQE websit
Dave Sweeney
06 Jun 2018
This and that Nick- shorting was obviously a hot topic at the AGM amongst investors, personally I find it tiresome as for my long term holding its inconsequential , but in the short term it affords good trading opportunities. The bulk of my LTBH INVESTMENTwas made when the shorting %was far higher than today 
. Boards and directors have to get on with the business of running the company, but the CEO made it clear that although as frustrated as us, with the shorting situation , the house brokers and analysts were feeding back that their institutional investors were picking up shares , at a lower price than the recent offering and were very very happy to do so, that is very comforting if you think about it- don’t look at the SP too much if you are not a trader. I think the CEO made it crystal clear that they are concentrating on US institutional investors with the recent roadshows , frequent presentations and the upcoming meeting with a major US investor- requested by them. I also believe that a migration to the FTSE which was no on the cards from answers to that question at previous AGM’s is now almost a racing certainty given the comments this year, in fact I believe if Phil , our late CFO had not been so tragically killed, it may have happened this year- a FTSE placing would demand a relating and further increase institutional interest, but the shorter’s wouldn’t like it I personally do not favour a Nasdaq listing with its quarterly reporting but that’s just me,Some comments relating to NDA’s , verticality and outsourcingA simple search enquiringly about the number of VCSEL chip suppliers, came up with the figure as 17, it certainly contained all the names I knew about, but I have doubts on its accuracy. However, VCSELS chips are a fairly recent innovation so 17 is certainly a ‘ball park figure’As I said in my report IQE are certainly supplying The ‘biggies’ Luminar, Himax and Finisar ALREADY so that means we appear to be supplying 13 out of 17 VCSEL chip companies following the AGM announcement 76% and likely to raise from that imho.Why- you might ask? Well as described eloquently by Drew Nelson OUTSOURCING is the way to go, and this also ‘feeds’ into the NDA questions.A simplistic explanation for those who have difficulty with the concept of ‘verticality’ - many companies in the past decided it best to do the whole process themselves- wafer epitaxy, moduledesign and manufacture, it sounds sensible doesn’t it? Because you control everything, HOWEVER, you become a ‘jack of all trades’ and inherently a master of none. Volume production from big customers demands very high quality and yield- vertical companies struggle with capacity and the complexity of the design chain. Increasingly, companies concentrate on their CORE competency- chip manufacture and OUTSOURCE the wafers.There is a large amount of hubris involved here, companies, especially when historically vertical in nature simply hate admitting they have to outsource, even if it’s for the totality of their supply, they prefer to let the market believe they do the lot- just listen to their conference calls, in essence IQE will never be mentioned and they won’t let IQE name them!I think the days of vertical companies are done and dusted, especially now that large OEM’s are bypassing the supply chain and dealing with the IP and component manufacturers directly.
CotswoldSparky
05 Jun 2018
Re: My AGM report Excellent write ups of yesterday, as always from Dave and others. Some points to add, and my apologies if they have been mentioned already.While IQE were clear that they could not name "you-know-who" as a customer due to NDAs, Dr Nelson did make a comment that supply chain logistics were very different now compared with in the past. Previously, IQE would supply wafers which would be processed by someone else, packed by another company and built into the design by the OEM who would not necessarily know about IQEs involvement. Nowadays, OEMs are directly involved in all stages of the supply chain.He was able to put up a slide showing the VCSEL in the iPhone X as it was in the public domain - this one, I believe: [link] He then showed how IQE were working on technology which could replace the optic diffractor (quite bulky) with an equivalent thin sheet of plastic - a massive size reduction.Competitors were dissed one by one, as Dave said, as lagging on the technology curve. I went on the bus tour and Chris side-stepped my question on Apple's investment with Finisar. There was also a discussion on the bus about the LTIP which I didn't quite hear all of as I was sat about half-way back. I believe Chris said that the LTIP was applicable to all staff, just they were required to RNS the director element. IMHO, yes, there is a discrepancy between LTIP thresholds and growth forecasts but any push for higher threholds could affect staff morale, which is not great if you look on Glassdoor ([link] Wouldn't want Finisar / Apple taking advantage and poaching a-la IMG/APPL recently.Re. the slide show going on the website, he said that the slides about market share were from a paid-for Morgan Stanley report which allowed for their use on a 1-2-1 basis but not for wider distribution. He needed to clarify whether they could be included.On the first shipments from the new factory, he did say that the first small batches were likely to ship in July (he did stress that these wouldn't be significant volumes). He also said that the new factory would likely be a building site for a while (3-5 years?) as they phased in new reactors gradually to meet expected demand.One last thing - CM used the cooking analogy when talking about competition. Anybody can buy an oven, a recipe book and ingredients. It doesn't make you a Michelin starred chef.All-in-all, a company going in the right direction and I'm happy to keep a substantial chunk of my SIPP/ISA pot invested. I sincerely hope it stays an independant company for the forseeable future but realistically it will surely go the same way as other great british tech companies - the city, unfortunately, just does not understand tech stocks...would love to see a NASDAQ listing but don't think it will happen.ATB, CS
Nick the Cynic
05 Jun 2018
Re: My AGM report Did the subject of share shorting come up?
Fordo
05 Jun 2018
Re: Is this Apple/Dialog Semi'r. news re... I think you're right Shabby when you say these will be covered by NDAs and we are unlikely to know the details.In a very crude simplistic sense, which is the level of understanding that I have of it, operational qualification will be demonstrating that the process can operate in the real world to produce product that meets a set of defined criteria predictably.In other words it is the way that the customer is assured that the supplier's process is fit for the purpose and can be relied upon. Each customer's wafers are bespoke and the complexity of the tech is such that the qualification is specific to each machine.I don't think that there are any specific directors expectations set out anywhere for these 10 new customers. I think that when expectations are referred to they are talking more about the guidance that they gave in the business review section of the AR. These new customers are in the photonics segment that they have guided to grow at a rate of 35%-60% in the near term based on current products.
