Why I’d still shun the IQE share price at 50p

first_imgSimply click below to discover how you can take advantage of this. See all posts by Rupert Hargreaves I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Over the past few months, the IQE (LSE: IQE) share price has outperformed the broader market. Indeed, the stock is up more than 100% from its March low.Investor sentiment towards the semiconductor consultant and manufacturer has improved following a positive trading update from the company at the beginning of June.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…However, despite this performance, and the company’s improved outlook, several factors suggest it may be best to avoid the IQE share price.IQE share price problemsThe IQE share price has outperformed since March and the group now expects to return to profitability in 2019. In its latest trading update, the company said it expects at least a 27% jump in revenue for the first half.It anticipates a return to profitability due to the strong performance of its wireless equipment & light sensors businesses. Management believes the rollout of 5G phones using IQE’s kit will offset any coronavirus related impact on operations.Previously, IQE was expecting to return to profit in 2021. So the recent update implies the business is a year ahead of projections.However, the company has a history of missing expectations. Profits have fallen every year since 2015. Over the same period, sales have risen by about 23%. These figures infer that the company is struggling to compete in a highly competitive market. As such, the recent positive performance may not last.The group’s balance sheet has also deteriorated. Since 2017, the IQE share price has spent £46m in cash and taken on £64m in debt. As profits have only fallen during this time, there’s little to show for this additional spending.OvervaluedOn top of the company’s lack of progress over the past few years, it also looks expensive at current levels.At the time of writing, the IQE share price is dealing at a 2021 P/E of 52. That makes the business one of the most expensive companies on the London market. It’s even more expensive than the group’s larger, more profitable international peers.As such, while the IQE share price might have benefited from the coronavirus crisis, it may be best to avoid the stock after the recent gains.There’s no guarantee the company can meet the market’s expectations for growth, especially considering its track record. If the group fails to live up to those expectations, the shares could fall substantially in the near term. With that being the case, it may be sensible to take profits after the stock’s recent performance. However, if you’re willing to take on the risk, this is one of the few semiconductor companies trading in London today. As technology investments go, the IQE share price is one of the best ways for investors to bet on the sector, despite its problems.Therefore, if you’re interested in owning the stock, putting the IQE share price in a diversified portfolio may be the best approach. Why I’d still shun the IQE share price at 50p Rupert Hargreaves | Sunday, 5th July, 2020 | More on: IQE Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. “This Stock Could Be Like Buying Amazon in 1997”center_img I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Enter Your Email Address Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Our 6 ‘Best Buys Now’ Shares Image source: Getty Images last_img read more

Do Australia need a change in mindset?

first_img Do Australia need a change in mindset?Australia have a long tradition of playing a running game – probably why David Campese held the international try record for so long – but do they need to show a little more pragmatism going forward?The Wallabies have always had a reputation as a ‘tournament side’ and of peaking for World Cups – they have reached four finals and won two – but their 2019 campaign ended at the quarter-final stage.England saw them off comfortably in the last eight, winning 40-16 in Oita, but Australia’s tactics did not help their cause. They seemed reluctant to put boot to ball to clear pressure, even when in their 22, and more often than not chose to run it instead.Related: England 40-16 Australia Match ReportIn the face of England’s line speed in defence, this was not always the best option. Twice passes got picked off and resulted in tries – Henry Slade breaking from halfway to set up Jonny May’s second and Anthony Watson plucking a floated pass out of mid-air to run in from the 22m line.Even when they did choose to kick, the Wallabies often opted for shorter chips rather than long clearances, and again this came back to bite them. Kurtley Beale’s chip from his 22 fell into the arms of Jonny May, who then launched a counter-attack that saw England get to within six metres of the Australia line.When you have 64% possession, 62% territory and make twice as many metres as your opponents (568 to 273), you should be in with a decent chance of winning. But Australia were pretty much out of the quarter-final contest at the hour mark.The glaring figure from the post-match statistics is that Australia conceded 18 turnovers – the attacking mentality too regularly resulting in forced passes or players becoming isolated. Down and out: Australia players show their dejection after losing to England (Getty Images) Focusing on all-out attack can be at the detriment of results – as their World Cup quarter-final showed Yet Wallabies coach Michael Cheika bristled at the suggestion they had got their tactics wrong. “No, I don’t think so at all…,” he said post-match. “We gave away two intercepts. They hurt. That is the way we play footy. I am not going to a kick-and-defend game.“Call me naive but that’s not what I am doing. I would rather win playing our way, that’s the way Aussies want us to play.”Surely, you would rather win full stop? Had Australia shown a little more pragmatism – gone for three points rather than a scrum from a penalty in front of the posts with 25 minutes to go for example – they could have made the quarter-final more of a contest.Evasion tactics: Kurtley Beale takes on England’s defence (Getty Images)The attacking mindset is certainly good to watch and they have players who can excite and exhilarate crowds. Marika Koroibete and Beale are just two dangerous runners in the Wallabies’ back-line while teenager Jordan Petaia looks likely to be a threat in international rugby for the next decade.However, rugby is about balance, about being able to use the rapier and the bludgeon in different circumstances. A refusal to consider widening the remit of a team, to mix long kicks with neat flicks as one example, can be detrimental.Australian rugby does face a lot of competition from other sports – league, Aussie Rules, cricket – and that is one of the reasons the Wallabies have long adopted that all-out attack mentality. The theory goes that you need to play entertaining rugby to attract fans and it does help. But winning rugby is surely the biggest draw?Whether Australia change their philosophy as they start the rebuilding process for France 2023 we will have to wait and see. What we do know is Cheika will not be overseeing that process because he has quit as Wallabies coach.center_img LATEST RUGBY WORLD MAGAZINE SUBSCRIPTION DEALS Keep track of events in Japan via our Rugby World Cup homepage.Follow Rugby World magazine on Facebook, Instagram and Twitter.last_img read more

Long: We must learn from mistakes

first_img He now has four goals in his last four games for club and country, and Long said: “Trying to get that first goal of the season is always a monkey on your back. “It was a relief. Hopefully I can keep up this form between now and the end of the season and keep my place in the starting XI.” Long, whose Albion contract has until the end of this term left on it plus a one-year option in the club’s favour, had looked set to join Hull earlier this season and after that fell through, he spoke about “time running out” and having to consider other options, despite being happy with the Baggies. West Brom head coach Steve Clarke on Monday expressed his confidence the club “will sit down sometime in the future and sort his (Long’s) contract out”. And Long, now on a run of three straight Albion starts, has emphasised he is enjoying himself at the moment. The 26-year-old said: “When things are going against you, confidence is a big thing for a striker. “I feel like I’m going into a game looking forward to the 90 minutes rather than looking over my shoulder at the bench. “I’m enjoying my football at the moment – we’re playing some good football at times and hopefully I can keep on the streak I’m on.” Villa boss Paul Lambert had no doubt his side’s first-half display was not good enough, but rated their performance in the second – when they were given fresh impetus by the 57th-minute treble substitution that introduced Andreas Weimann, Gabriel Agbonlahor and Fabian Delph to the action – as “excellent”. And asked about his team-talk at the interval, Lambert said: “There were never any teacups flying around or anything like that. “We said something, but this is not a blame culture – you are in it together. “Thankfully we got inside their heads. But once they go over that white line, it is on them. “They have to perform and in the second half I thought they were excellent. “It was important to get in at half-time at 2-0, and I knew if we scored the next one it would flip the coin.” Both Albion and Villa, 11th and 12th in the table respectively, now have 15 points from 12 games. Meanwhile, Clarke has confirmed Baggies defender Liam Ridgewell missed the contest due to a calf strain, adding that he has an “outside chance” of featuring against Newcastle. The Baggies appeared to be cruising towards victory early on in the Barclays Premier League clash at The Hawthorns, with Long having opened the scoring in the third minute and then doubled the hosts’ advantage with another goal in the 11th. They had further chances – Stephane Sessegnon missing a particularly good one – to make it 3-0, but Villa fought back to claim a point. West Brom failed to react as Karim El Ahmadi converted a 67th-minute volley and nine minutes later, Baggies defender Goran Popov inadvertently headed the ball to Ashley Westwood, who fired it into the net with a fine, swerving drive. Long told Albion Player: “It’s a killer blow, and especially after Chelsea as well, with us all but having the three points there (in their last outing West Brom drew 2-2 at Stamford Bridge, where they conceded a stoppage-time penalty). “We play good football, but we need to start learning from these mistakes and control the game when we get ahead. “It was a disappointing night and we have to learn from it going into the Newcastle game (away on Saturday) and make sure we pick up three points.” Long demonstrated superb technique for both his goals. For his first, he brought down Chris Brunt’s long ball expertly with his right foot before lashing in with his left, and for his second, he pounced on a poor attempted pass by Leandro Bacuna and deftly chipped Brad Guzan. Regarding his opener, the Republic of Ireland international said: “I think nine times out of 10 I wouldn’t get a touch like that – I surprised myself!” Long admits scoring in the Chelsea match – his first goal of the campaign – was important for his confidence. West Brom striker Shane Long has stressed the need for Albion to learn from their mistakes after they let a two-goal lead slip in Monday’s 2-2 draw with midlands rivals Aston Villa. Press Associationlast_img read more