SLX Ann: IQE Pauses cREO Development - 30th Mar 2022, 9:25am

[annb0t]

SLX Ann: IQE Pauses cREO Development
Price Sensitive: Y
Date: 30th Mar 2022, 9:25am

>>> Read announcement: Google: SLX Market Announcements

 

[Moosey]

I find it strange that the IQE deal for Creo hasn't added to the SP, yet when IQE decide to pause production the SP gets hit, weird IMHO.

IQE banking on long-term tech trends
Management hopes macro trends like the metaverse will drive long-term growth.
March 29, 2022
By Arthur Sants

• Weaker end markets hit revenue
• Investment and cost cutting set foundations for future

For semiconductor maker IQE (IQE) it’s a case of balancing long-term prospects against short-term issues. Management is confident the chips that support 5G technology and 3D sensing applications will be in high demand as megatrends like the internet of things and the metaverse take hold of society. However, to get there, IQE must fight through recent headwinds linked to supply chain disruptions, geo-political crises and de-globalisation.
IQE:LSE
IQE PLC

1mth
Today change
-5.37%
Price (GBP)
38.75
Wireless revenue fell 12 per cent to £83.2mn because of a reduction in demand for GaN wafers used in 5G infrastructure – where revenue was down 49 per cent. Asia, and China in particular, have slowed down deployment of 5G infrastructure and have been looking to source the required technology for it more locally.
As well as a reduction in 5G infrastructure demand, revenue in Photonics was also hit by a slowdown in the aerospace industry. Infrared revenue fell 8 per cent and 3D sensing applications was down 19 per cent as a result of smaller chip sizes.
There are some silver linings though. Strong demand for wafers used in 5G handsets and WiFi 6 routers resulted in a 19 per cent increase in sales for Wireless GaAs. Management pointed out that this same technology can be used in any devices that need to be connected to the internet. This could include autonomous vehicles or headsets used for virtual reality in the metaverse. Both are sectors that futurists are adamant will boom in the coming years.

 

[Moosey]

Got this from a friend of mine around mid May, this may explain the SP rise recently ?
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From Shaws
Silex Systems (SLX)
Rating: Buy | Risk: High | Price Target: $3.40
Helping the US source non-Russian nuclear fuels
Event: US Senator John Barrasso has introduced to the US Senate a bill to ensure a domestic supply of High-Assay Low-Enriched Uranium (HALEU) for Advanced Nuclear Reactors. There are two bills now before the US Senate; Barrasso’s Fueling Our Nuclear Future Act focussing on HALEU and Senator Minchin’s International Nuclear Energy Act focussed on broader nuclear industry initiatives. Both are ultimately aimed at ridding US reliance on Russian (and Chinese) nuclear fuel and technology. Both bills have a level of bi-partisan support; in our view the chances each bill passing is reasonable. As far as SLX (and GLE) is concerned, both bills potentially passing would be very positive. Barrasso’s Bill would possibly lead to direct finding support for potential HALEU suppliers and Minchin’s likewise for uranium suppliers. The legislative process is complicated in the United States. We will continue to observe how these bills fare as they move through Congress.
Recommendation: In our view the US nuclear industry is about to undergo massive revitalisation with significant funding initiatives from Congress likely, which is positive for GLE and Silex. Further investment is required in uranium mines and nuclear fuel enrichment technology. We have a high conviction Buy recommendation on Silex and believe the company is materially undervalued at current levels.