Andrada Mining acquisition elevates the miner to emerging mid-tier status. Watch the video here.
Coltrane had a huge position here. Probably took view the share had bottomed out. IQE has a lot of good IP here. Question is has the market significantly improved since q4. Also if IQE has business sense to run such an operation. Are the new mobiles been sold using more IQE technology? Seems unlikely given their last TU in November. Orders are likely made months in advance. No news on new clients moving towards production.
If they are doing so well they should say so.
The MWC 2020 in Barcelona has been cancelled. Meant to be biggest mobile showcase. Many firms had already pulled out. 9th Corona case in UK too.
https://www.bbc.co.uk/news/technology-51474116
I figure that is closer to 15.5m to clear now. They will have cleared 0.56% or so today. 6m trades and likely 4m from Coltrane. There was 550k or so on Nexexchange but no big trades on there for last week or so. It does feel like they are clearing fully here. Could all be done in a week. Lot of these shares were shorted for 140-180p. Huge profits here.
Mainly due to Coltrane? Reduced on 10th by 0.06%. Now 2.57%. There has been no real news from IQE? They need many new contracts to increase revenue here. I don't think demand will change over night. IQE may well be stuck with inventory if Apple has reduced demand. That being said the US economy is doing well. China will hopefully recover once virus clears? 1-2+ months? Perhaps a shortage of stock now shorts starting to clear. I was expecting a big trade to go through but never happened. (Scrap that 2m trade has just appeared.) So it's likely Coltrane has cleared 3m or so shares today.
44686 case. Nearly 1116 deaths with 8,204 in severe condition. Assuming China numbers are right? If the virus is mainly restricted to 2 big cities then maybe this will go away. Still seem to be more and more cases cropping up. It's up to 2 weeks before we know if anyone has the virus. There were nearly 180k suspected cases a week ago.
Coltrane down another 0.59% to 2.63%. They have reduced from 4.43% to 2.63% in a 1-2 weeks. (1.8% reduction. Near 40% reduction from their peak.)
Shorts in IQE now 7.09%. Not been that low since Dec 2017.
Somewhat confident the 3m and 900k trade from 7th Feb will be Coltrane. So they could be 2.70% by tomorrow? They are pretty responsible for most of the rise here. 4.43% vs 2.7% is much safer.
https://www.bbc.co.uk/news/business-51438845
4m estimated fall in Iphone sales in Q1. 32% predicted drop in China Q1 2020 smartphone shipments.
5% predicted drop of smartphone sales in China over 2020.
Let's hope IQE is not too reliant on Apple this year. Maybe there is better news elsewhere but the longer this Corona virus goes on the bigger impact IQE may face. How honest is China being over new cases?
IQE website suggests they are employing in all areas. No indiction of what the jobs are. With IQE no news is probably good news. As most of their TU lately have been terrible.
2 more big trades gone through. 3061664 and 864318.
Have to see if this is a shorter. Trade went through at midprice but likely a buy. Volumes here stil much higher than usual. See what percentage Coltrane have come next week. Their last drop was on 4th Feb.
Lots going on. Coltrane down to 3.78%. Reduced by 0.09% on 4th Feb. Pretty sure Coltrane will have reduced for last 2 days.
2 more RNS for T Rowe Price. Their loaned shares down to 4.52%. (31/01/202 and 03/02/2020) No idea why no RNS on this site. T Rowe Price still at 17.59%. Perhaps as Coltrane clear so will loaned out shares for T Rowe Price?
If both start reducing this share will rise unless funds sell into the rise.
As predicted Coltrane short down 0.12% on 03/02/2020. Now 3.87%. So far 0.56% out of 4.43% reduced. Clearly reducing their risk here. 500k buy at close of play could be them too. There was a large trade yesterday. So they could be close to 3.5% by end of week. Albeit reported next week.
Looks like T Rowe Price reduced by 0.19% too. At 55p maybe some are taking profits too? How eager is Coltrane to sell? I think we will see further updates for them on last 2 days. I think they will time any reduction in time for the results in March.
This RNS relates to 30/01/2020. So unlikely related to todays fall
Maybe an update on new customers before results? See what happens.
Coltrane now at 3.99%. Reduced on 31/01/2020 by 0.07%. Would explain why the share price is rising here.
Have to wonder how much IQE is being affected by this China bug. Reports of people staying at home and being told not to come into work. If 1-2 weeks probably small effect. UK is suggesting this virus could be around for months. Suggestions of 20k people have been infected with the virus now. Albeit the number is likely under reported by China. That number is now rising by the thousands each day. Over 1bn people in China. Hard to track 20k+ people.
As suspected Coltrane have reduced again by 0.22% on 28/01/2020. Now 4.06%.
They may well have decided to clear before the results. See what happens. The have reduced by almost 10% now. The 520k trade today could well be them too. See what happens.
Coltrane have reduced again. 0.04% on 24th Jan to 4.28%. I wonder if the high volume today is them too. Maybe after 3-4 or so years they are taking profit? Will they clear fully? It would take 100 days at that rate.
Invesco still selling as per RNS. I think they will sell in 1-2% batches to funds who will take shares. Plenty of buyers here who want in.
Ceres surging ahead here and taking some decent profits here. Will Ceres stay at £4. Most cashcalls normally send shares falling back. See what happens.
Well that is about 0.4% of shares. Guessing the directors will grab 10+ million shares this year too. It stops any of the directors really buying any stock. Why should they with huge share bonuses and losses for the year. Plus debt of 15-20m.
T Rowe Price loaning out more shares and reducing by a small fraction. Still circa 18% with loaned shares included.
Large UT trade today. 695k. Not usually that high.
All on ADVFN Chat board for IQE. Post by 1mthead.
'Certainly a thorough article, but missed some important points which would have provided more balance:
1) "The factory already has dedicated bays for 20 reactors, enabling IQE to double capacity if required to meet demand."
Not without taking on more debt and big risk, and we know these machines take a long time to become operational. In order to expand, debt would be much higher than the 17m in the guidance. They are not at capacity yet, 7 out of 10 machines in Wales, so I think adding new machines is not on the horizon for another one or two years. So they are not a growth play, they are a 'hopefully going to catch up with previous expections' play.
2) "US-based Finisar, which manufacturers optical communications products, expects to start production in H120."
Failed to mention that Apple gave Finisar a large cash injection to develop this production line so are almost certain to be a customer. It's unknown how this will affect volume at IQE. One thing is for sure, they won't tell IQE or anyone else that they are about to be dropped.
3) Rent - no specific mention in the figures of the rent free period at the Wales facility coming to an end and what the effect will be on ongoing costs. It's not obvious that this has been accounted for in the guidance.
P/E 178 - Whoa! When I first bought these the P/E was 12 and the sector average was 22, which is what attracted me, and the correction came fairly rapidly. Would I invest in the same company today with a P/E at 178, no pain-free path to growth, and many unknowns? Not at this price.'