Section Items

Clarification
The comments on this page are some of the thoughts that I had when considering this company and not a recommendation to take an action or to refrain from taking an action.

As you know we have no information about your circumstances, understanding of your investment goals or the level of risk that is acceptable to you. So it would be completely unreasonable to read these commentaries as recommendations.
Is This Just Pump And Dump?
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Commentaries tend to be created when I look at a share and decide if it is one that I want to buy either now or when I next have an unallocated pot.
Financials
As companies often report numbers in slightly different ways there are a number of entries to cover this and as these are rough notes there will usually be empty items.

The debt columns are shown as positive values if there is any debt, all other negative values are shown within parenthesis and without a sign.

Commentary On IQE plc

Title: IQE – Too Specialized For A Retail Investor?
Company: IQE - IQE plc
Share Price Then: 49p
Author: Ian Smith
Date: Mon 18 Nov 2019
Comments: IQE is the global leader in the design and manufacture of advanced semiconductor wafer products driving connected 5G technologies,

They have just released a trading update with predicted revenue down to £136m and £142m, moving from a cash surplus to £15-£20m of net debt and a predicted operating loss of around £5m down from an operating profit of £17m (2017) and £8m (2018).

However they are not a new business they have had an AIM listing since 2003.

Up until the mid 2016s the share price was fairly flat at around 16p, peaking at around 171p in Nov 2017 and since then you could draw a reasonably smooth straight line down to the current price.

Dr Drew Nelson, the CEO says …IQE is confident it has not lost share and who remain very well positioned for returns to growth in 2020…

Whilst quite possibly true, the nature of the company’s products means that there is little reason to expect a share price rise in the short term and plenty of reason to expect a continual drop.

I can’t help but feel that there has been a share price bubble and relying on a semiconductor maker to stay relevant into the future and return to a possibly inflated value seems quite risky.

Wireless made up about 65% of the revenue, photonics 38% and Infrared 9% so the other areas on their web site such as Solar Panels, power and semiconductor materials are possible growth areas.
Financials:
ItemCurrent PeriodPrevious Period
Year20182017
Period12 Months12 Months
Revenue£156m£153m
Earnings
Adjusted Earnings
EBITDA£26m£37m
Adjusted EBITDA
Statutory Profit£1m£15m
Adjusted Profit
Total Debt
Net Debt(£21m)(£46m)
Read Count: 507

Commentary History

Date Ticker Title
Mon 18 Nov 2019IQEIQE – Too Specialized For A Retail Investor?