IQE is the leading global outsource supplier of customized epitaxial wafers to the semiconductor industry.

Their technology is of most advanced like AFM means Atomic Force Microscopy and moves a minuscule cantilever over an objects surface, a sharp tip passes over dips or rises punched in the surface and reads out digital information. This technology is not going to slow down it is going to speed up and has to replace most existing forms of memory storage by virtue of capacity and size.

The future of nano-technology, these tiny/minute robots would need very small processors and most sure strained silicon could provide these.

The low share price is due to uncertainty as to when the cash will run out, but I don't think this will happen as cash is of 12 to 15M and NAV of 30p, and losses are going to drop on the next 3 month and we could have profits on the Q4 2004.

Latest news from the Chairman were" The Group remains confident that it is in a strong position within the outsourcing market, although the protection of its cash position is paramount.
With a broad product portfolio allowing the customer base to use IQE as a 'one stop shop', a large available production capacity and a strong balance sheet, the Board believes the Group will benefit strongly as the overall semiconductor industry recovers and will continue to strengthen its position as the leading outsource supplier of advanced wafer products to the sector. "

Nearly all the recent results have been encouraging. Q4 accounts are being completed (30th Dec 2002). IQE know where they stand, if things had got worse their would have been a trading statement by now, and with Amberwave (IQE's partner) increasing its Asian presence, this is a bullish trend and a good point to pick up the shares @ 4.25p

Intraday

5 month MA and Indicators

I think it's the facial recognition part of the new phone which benefits IQE:

https://www.theguardian.com/technology/2017/sep/10/apples-latest-iphone-name-leaks-ahead-of-official-release

The welsh seem to recognise the potential:

http://www.iqep.com/media/2017/2017/2017/09/historic-signing-seals-world%E2%80%99s-first-compound-semiconductor-cluster-in-south-east-wales/

Electronics Weekly suggest what we think we already know!😊
https://www.electronicsweekly.com/news/business/ige-big-winber-iphone-launch-2017-09/

Delayed iPhone X launch pressures Apple stock

Apple iPhone X: the internet reacts

Peel Hunt Buy 137.88 150.00 150.00 Reiterates

137.25p -7.75p

Apple suppliers dent European shares as equity rally falters

LONDON, Sept 13 (Reuters) - European shares faltered on Wednesday as a global equity rally showed signs of flagging, with Apple suppliers struggling after the new iPhone release disappointed with a later than expected shipping date.

The pan-European STOXX 600 dipped 0.3 percent as weakness in chipmakers was compounded by a drop in miners .

Euro zone stocks and blue chips held steady, while Germany's DAX, which touched its highest in nearly two months on Tuesday, fell back 0.1 percent.

Chipmakers supplying to Apple were among the worst performers, with AMS down 3.9 percent, while Dialog Semiconductor slipped 1.7 percent and STMicro fell 1.1 percent.

Traders said their shares were under pressure due to Apple's new $999 iPhone X shipping later than expected, on November 3. The price tag could also dent demand for the device in markets such as China.

"With the iPhone coming in around $1,000 it will be interesting to see how healthy demand is," said Mike Bell, global market strategist at JP Morgan Asset Management.

"If it's relatively healthy I think it shows that there is still quite a lot of pricing power for U.S. companies and that consumers have confidence."

Chipmakers have been the best performing among Europe's tech stocks this year, accounting for a large chunk of the sector's outperformance. AMS shares have gained 165 percent year-to-date.

Richemont fell 1.6 percent despite reporting a sales beat for its first half thanks to a recovery in the Asian luxury market. UBS analysts said weaker retail growth may weigh on sentiment.

Peer Swatch also fell 2.5 percent, with some traders citing concerns that Apple's new watch could also dent the watchmaker's shares.

I think I am correct in saying that the new phone has a modified input socket which means purchasers of the phone are also going to have to buy a new cable / charger which is yet another cost and perceived unnecessary piece of junk. The X model needs a wireless charger, not available until 2018.

Peel Hunt comment today:
"This marks the real start of adoption of VCSEL technology in the mass-market. IQE, as the dominant outsourced player, with a reputation for delivery, customer service and low cost, is ideally placed to deliver it. The most optimistic may be disappointed that VCSELs are not immediately in all models and both cameras, but this will come in time.
How well will they sell? (time will tell but the new model is a big step up from the 7, the launch date for the X is not until 3 November, a much longer wait than usual, the price of $999/£999 for a base 64GB iphone is demanding but has been judged based on the value it brings).
Much remains to be seen, but our mid-case scenario of a taxed 7.5p EPS requires 200m “units”(iphone X equivalent), each with $0.75 of content (end FY18 run rate, which looks a bit high on the current line-up, but this can change), to which we apply a target PER of 20x.
This is not inconsistent with contribution payback being one year for the investment in new tooling, as recently highlighted by management to investors, which using simple arithmetic would take untaxed EPS to 9p. The stock is likely to be volatile as news flow emerges, hence our TP 150p is only a central case."

Apple 'explains Face ID on-stage failure'

A little extra reading:
http://www.edisoninvestmentresearch.com/research/report/iqe622995/preview

Fund % short change Date changed
Coltrane Asset Management, L.P. 0.91% 0.19% 19 Sep 2017
Ennismore Fund Management Limited 1.54% 0.11% 18 Aug 2017
Marshall Wace LLP 2.71% 0.08% 19 Sep 2017
Total 5.16%
Shorters are back in town now up to 5.18%

Shorters running rampant

page 58 i mentioned shorters. trick now where to buy back in, 90p ? bb

I have sold and taken profit (entry price 86p) so am not complaining, though kicking myself for not selling at 140p!
Now that the original reason for the hype has died down I agree that the sp is likely to fall. 90p would be interesting, though a positive RNS from IQE would change all that.

Possible supports for a bounce' exactly where it lies at 120p, if that fails 110p. Failing that shorters may take it back down to close a wee gap at 85p (ish). Watching for now.

I.C. recommended selling at 150 a couple of weeks back, and happily ,( for once !) I took their advice.

Chris that could be a good shout 85p the way its going

sp bounced at 110 as i thought might be the case, so bought some more though a bit late at 114

Posted elsewhere by 'grabster' today - regarding Philips/IQE:

European Consortium Completes VCSEL Project
Wednesday 27th September 2017

Philips Photonics reaches production milestone of 700 Million VCSELs, projecting another doubling of capacity by early 2018


Philips Photonics, a maker of VCSELs, has announced the successful completion of its ‘VIDaP’ project (VCSEL Pilot Line for Illumination, Datacom and Power Applications), a €23 million project jointly sponsored by the German Federal Ministry of Education and Research (BMBF) and the EU, and executed under the umbrella of the European ECSEL program.

Since its inception in 2014, the project has focused on making significant advancements in highly automated manufacturing, bringing VCSEL production to the same level of maturity as the LED industry. Philips Photonics led the project. Other partners were IQE Ltd, STMicroelectronics, Sidel, SICK AG, Mellanox Technologies Ltd, and the Technical University of Eindhoven.


Global revenues for the VCSEL market currently stand at several hundred million, and are expected to swell to above $1billion in 2022.

https://compoundsemiconductor.net/article/102626/European_consortium_completes_VCSEL_project

IQE
took advantage of the plunge to buy some to trade, though i got in a bit too early