Hello, Share Teasers. We are now only a few days away from the latest set of figures from IQE (IQE). And once again I face an irritating quandary on what to do with my remaining holding. This cache of shares isnt as large as it used to be. Thats because only a fool disregards negative comments on this magnificent website. It probably has the best investigative writers in the City. But even the best shorters get things wrong, so I retain some IQE shares.
Good news indeed but I sincerely hope IQE resist the temptation to sell on the cREO technology IP to one of it's JV's and record such a transaction as sales.
Sales should come in the next 2-3 years but there should be no attempt to use this transaction to bring forward sales for short term fixes.
to bring my IQE holding to within 10% of my portfolio but will buy back if, as I expect, they fall back at some point after results to £1.30 or lower.
If they rise sharply and stay up I am still a happy bunny.
Just read your comments on the CREO announcement and obviously the announcement itself.
My personal view is that its very positive theyve taken up this option - theyve had 30 months to look at CREO and have many other uses for capital right now as they ramp up expenditure on new equipment and clean rooms. Bringing this IP into the portfolio looks highly complimentary to providing novel solutions to our existing core markets, whether or not the return on investment is immediate it once again adds to the overall attraction of IQE as the worlds leader in epitaxial solutions for compound semiconductors. (Should l apply to their PR firm??) Seriously, the value creation from this could and should be a hefty multiple of the investment.
Im sure well hear much more on CREO in 2019/2020, by when hopefully well start to see some attributable revenue generation.
....... and to answer the poster asking what Im opening on the results announcement on Tuesday to celebrate, without sounding curmudgeonly, the answer is nothing as l strongly believe the reasons to celebrate in subsequent years will far outweigh whatever we learn on Tuesday. My opinion, my humble opinion, is this train is only just leaving the station, as mentioned on several occasions. I for one will have cheque book at the ready should for any reason the shares suffer a setback on Tuesday or thereafter. I dont expect Ill get the opportunity as we had recently with Tom Winnitwit and the dark siders, but Ill be buying a whole load more if we do... Hard to find companies facing very broad growth markets with products that have huge disruptive (to use the horrible phrase) potential on the incumbent laggard, ie silicon, and where every customer the company has is basically confirming they have massive growth opportunities happening now (for which they will need IQE product). DYOR or READ DS...
If anyone is interested learning a bit more about cREO, given that IQE has confirmed that it has taken up its option to purchase this technology, from Silex, read on, if not pass by. I believe on researching this deal that IQE have obtained patented IP ( and have since acquired extra patenting) at a sale of the century price, this deal imho will be seen as an amazing bargain in years to come. I asked Drew Nelson, how could IQE have gained this IP on what seemed a very low price and he explained that Silex had the IP but could take it no further, it had proof of purpose, was ahead of its time, but in order to be properly developed from an interesting academic proposition and scaled up, it needed expert engineering and a CS epitaxy company able to realise and see the concept through to the production process. IQE WIN, SILEX WIN by a small licensing fee and a continual royalty payment.
This is simplistic - allowing even me to understand it!
Translucent's cREO(TM) technology offers a unique approach to the manufacture of a wide range of innovative Compound Semonductor on Silicon products, including gallium nitride (GaN) on silicon (Si) for the burgeoning Power switching and RF technologies markets. It is protected by a wide ranging IP portfolio consisting of 74 granted patents, and 13 additional patent applications.
How does it work/ what does it do?
Simply,when 2 CS ( Compound Semiconductor) materials are placed together , or indeed a CS such as gallium nitride is added to Silicon a charge or a type of short takes place, this is called a parasitic channel , IQE using a cREO ( crystalline rare earth oxide) layer between the 2 materials is able to neutralise this parasitic channel, essential in producing wafers with the maximal performance and energy efficiency - the holy grail of computing/ digital functionality.
The key here is that cREO offers
Potential adoption of hybrid CS-on-Si across multiple markets
directed towards combining compound semiconductor with silicon to deliver high performance chips at low cost
Transition to cREOTM expected to happen application by application over the coming years, INCREASING IQEs ADDRESSABLE MARKETS.
CREO opens up new opportunities, it can be applied to all of IQEs 5 strands of business but perhaps the most important is the potential for IQE to break into the RF filter market in a meaningful way, this is likely utilising Aluminium nitride and cREO - any win here , and IQE are totally CONFIDENT, they will enter this market in a very meaningful way, ( probably with Skyworks and Qorvo - thats imho) will generate huge revenues £££ :-)
"IQE, the worlds leading epiwafer supplier, to acquire Translucents unique cREO technology
16 March 2018
IQE has elected to acquire Silex subsidiary Translucent Incs cREO technology;
A payment of US$5 million for the sale of the technology is due to be received within six months in either cash or IQE stock;
IQE is executing a multi-application roadmap for commercialisation of the cREO technology with the first product sales expected in the next 2 to 3 years;
A perpetual royalty of up to 6% will be payable on the sale of IQE products that utilise the cREO.
Silex Systems Limited (Silex) (ASX: SLX) (OTCQX: SILXY) is pleased to announce that IQE Plc (AIM: IQE) has elected to purchase the Companys cREO technology. The election has been made at the conclusion of the 30-month license period in accordance with the 2015 agreement between Silex subsidiary Translucent Inc and UK-based IQE, for the license and assignment of Translucents innovative Rare Earth Oxide (cREO) semiconductor technology.
A payment of US$5 million for the sale of the cREO technology is due to be paid within six months in either cash or IQE stock. In addition, a perpetual royalty will be payable to Translucent on the sale of any IQE products that utilise Translucents cREO technology. In the case of bare cREO template products, a royalty of 6% on sales will be payable. In the case of finished epiwafers fabricated on top of cREO templates, a royalty of 3% of sales will be payable. It is expected that the cREO template will account for around 40% to 50% of the value of any finished epiwafer product. IQE has a roadmap to commercialisation within a 2 to 3-year timeframe with minimum agreed royalties due to commence to be paid at the end of 2019.
Silex CEO Dr Michael Goldsworthy said today: We are extremely pleased that IQE has elected to proceed with the acquisition of the Translucent technology following the completion of a 30-month product development program. IQE is the worlds leading epiwafer supplier and is well positioned to introduce this unique high-performance semiconductor materials technology to the market.
The cREO technology was successfully transferred in late 2015 to IQEs Greensboro, North Carolina manufacturing facility for the completion of product development and commercialisation activities during the 30-month license period. During this time, IQE have been developing cREO for potential application in several next generation devices in the semiconductor, digital communications and power electronics industries.
During the license period, IQE successfully produced prototype templates on silicon wafers using two of Translucents production reactors, for trialling and qualification within the IQE Group and select commercial partners. IQE also continued to support Translucents extensive patent portfolio and filed several new patent applications."
Really not sure whether to sell the day before results or hang on and watch it drift down from wherever it's at (hopefully 160+)
Not too worried as BUR did so well - up nearly 30% on results.
My ii page says 100% of IQE investors hold BUR, not sure I believe that...
JohnyCash - I won't match your £1 million, but I raise my
figure of £50 to £1000, to a charity of my choice if my revised
guessed share price of 139p comes true, indeed will do the
same at my earlier guess of 144p coming true.
P.S. Having said the above, I want to add that Charity Donations
should not based on bets, so I may make my donation regardless
of the share price being at any particular target.
Waiting for next Tuesdays results, I decided to spend this week at the Cheltenham Festival. In order to get some respite from the bazaar, looney behaviour of the crowds, I retired to a quiet comfortable corner to check my investments and this posting board only to find the betting craze and looney behaviour has extended to our very own Pickwick Club. Please dont think for one moment that our PB is alone in having crazy postings, the British Petroleum PB is in a totally different league...the last 40 entrys have no mention of oil, the markets, prices or anything relating to the company. Its a crazy world and not surprising that I have just finished my light healthy breakfast with a large Jack Daniels....cheers! Well it is cold outside.
Waiting for next Tuesdays results, I decided to spend this week at the Cheltenham Festival. In order to get some respite from the bazaar, looney behaviour of the crowds, I retired to a quiet comfortable corner to check my investments and this posting board only to find the betting craze and looney behaviour has extended to our very own Pickwick Club. Please dont think for one moment that our PB is alone in having crazy postings, the British Petroleum PB is in a totally different league...the last 40 entrys have no mention of oil, the markets, prices or anything relating to the company. Its a crazy world, of surprising I ended my breakfast with a large Jack Daniels....cheers!
I revise my guess to 139 (from 144), and like the messenger
before me here, should I be correct then I shall make a £50
donation to a charity of my choice, or should there be a call
for that, to a charity of DS's choice.
This article is very eloquent and explains why CS materials ( Compound Semiconductor) will replace Silicon in many ( not all applications)
For the newbies and those that havent quite grasped the fundamental importance and advantages of what IQE DOES - Compound Semiconductors , this is a great little article, easy to understand and spells out that the DIGITAL CONNECTED WORLD will be totally dependent on Compound Semiconductor materials. What it doesnt say is that IQE is like a formula 1 car at the front of the grid and our competitors are mostly in the pits trying to get their act sorted ( believe me or not, I dont care,IQE is still a secret for the wider investing community, once its found , tick tock )
My hunch is that the results will be good but as the market has become a bit nervous of this one since the recent shorting debacle the price will drop on the announcement and then make a gradual recovery in the following week or so. Also you dont say which Monday. My guess is £1.35 Anything much below that and Ill be topping up.
The forum blocks a direct link to this original article below from the Daily Telegraph some year ago. Perhaps Monty chose to interpret such inanity from an ornithological standpoint.
"When is a male bird not a c~~k? On the RSPB website
The Royal Society for the Protection of Birds has banned the use of the word "c~~k" when applied to the male of the species, in case it causes offence.
In a move condemned for "taking political correctness too far", a correspondent on an RSPB online forum was surprised to find that his use of the word "c~~k", when referring to a male blackbird, was replaced with four asterisks.
He challenged the forum moderator over the sensitivity to the word, only to find that once again the asterisks appeared. He wrote: "When is it not in order to refer to a male bird as a ~~~~ and a female as a hen? I've heard of PC but that is taking things too far."
The contributor, named as JohnD from Holmfirth, Yorkshire, adds: "It's censorship that is just silly. What should I have said then . . . the daddy bird . . . the father bird . . . the male."
The moderator replied: "It is not political correctness. The issue is words that can be used in an offensive context and we should not forget that the RSPB website has a massive viewing from children.
"Pretty much all internet forums use the same or similar filters. It is far from an ideal situation but it is better to be safe than sorry."
In a second posting, the moderator adds: "Some words have been hijacked for a different and more offensive meaning and it is important to examine the context in which they are delivered because forums have the potential to be read by people of all ages.
"It is not easy to override the system but I have seen this being abused on other forums by careful wording so it is better to be cautious."
An RSPB spokesman confirmed that it did not use the word "c~~k" on its website, preferring instead to describe birds as either male or female.
"The filter that removes the word 'c~~k' and replaces it with asterisks is built in to the Microsoft software package we use. This is standard procedure. It is not something that we have added ourselves," she said.
"These filters are designed to remove a range of words the software designers believe some people may find offensive. When someone uses the work c~~k it automatically replaces it with asterisks. Our moderator is not sitting there making these changes."
John, in Holmfirth, had the final word, writing in another posting: "I was thrilled to see on the bird table a pair of . . . Parus major."
"As bird lovers will know, a Parus major is a great t~t, and while ~~~~~ do not get past the forum censor, 't~ts' do not cause offence.""
£1.55 and a kick back after the results are published simply because the current share price takes into account results that are probably overly bullish at this stage. Hope Im wrong, north of £1.80 on the 20th would be good !!
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