Market's view on Ensilica
Published on April 2024
- IQE has been described as underperforming despite potential opportunities in wafer manufacture, with a specific mention of not benefiting significantly even when supplying to major companies like Apple.
- Concerns were raised about the disappointment in IQE’s share price performance, suggesting it might be worth investing for long-term gains given the current stagnation.
- A stock watcher pointed out the appointment of a second broker for IQE, which unexpectedly led to a share price drop.
- There is mention of a buy-the-dip opportunity for IQE, suggesting slight positive movements in share price.
- Early redemption of warrants for IQE is seen as a potential for selling shares, which might not immediately impact the stock negatively.
- It was noted that IQE still has outstanding warrants, which could lead to minor share dilution.
- Observations indicate a lack of buyers for IQE shares, contributing to disappointing price action compared to previous higher values.
- There is mention of IQE’s dependency on expensive short-term finance, which might explain weaknesses in their balance sheet.
- Broadcom faced criticism for its customer relationships and despite significant revenue growth, their stock suffered due to unmet investor expectations.
- AI integration in products by Broadcom’s major customers has not guaranteed stock value doubling, highlighting a cautious outlook.
- A new type of ISA allowing investment in UK companies was discussed as potentially beneficial.
- ARM Holdings and SMCI were mentioned for their significant market capitalizations and potential inclusion in major indices, which contrasts with discussions about other companies’ less favourable financial maneuvers.