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

Bullish thoughts

A 120p close would be a good price for tomorrow's asault at 130p and start changing the latest downtrend

So Rowe Price has increased its stake a tad, while having 21M shares out on loan to a shorter. Good to know.

Short sellers target Apple supplier IQE
30th Jan 2018 15:08 - by Alasdair Pal

LONDON, Jan 30 (Reuters) - Some of the world's largest hedge funds have set their sights on Welsh technology company IQE , making a $150 million bet against its shares on speculation rivals could disrupt its market.

Cardiff-based IQE produces around 80 percent of the global supply of outsourced “epi-wafersâ€, a type of advanced material used in products from laser hair removal to the 3D-sensing camera in the latest iPhone X.

Its share price has risen more than six-fold since mid-2016 as investors bet the company could benefit from a huge contract with Apple.

But over the last few months, some short sellers - who position themselves to profit when a share price falls - have grown convinced that IQE will lose its dominant position in the technology, according to sources familiar with two of the seven hedge funds that have disclosed short positions in IQE's stock.

They declined to be named as they are not authorized to speak publicly.

Short interest has risen more than tenfold from July to a high last week of 12.4 percent of the company's shares, according to filings disclosed with UK regulator the Financial Conduct Authority.

IQE is now the third most-shorted stock in Britain, behind department store Debenhams and sub-prime lender Provident Financial, both of which have recently suffered a series of profit warnings.

IQE, which reports full-year results on March 20, said it knew of no reason for the sudden spike in short interest other than its positive share price performance, which might lead to some profit taking.

“It is quite common. When you see that (a share price rise) it does increase the short position, but there is no known reason that we are aware of and its business as usual from our point of view, the firm's head of investor relations Chris Meadows told Reuters.

APPLE ORDERS

Apple uses epi-wafers to power iPhone X features like Face ID and Animoji, and in its AirPod headphones.

In December, it made a $390 million investment in Texas-based Finisar, which plans to supply the company with similar materials to IQE.

A number of Taiwanese companies are also manufacturing epi-wafers, with HLJ Technology's shares doubling since December, when it was reported by industry publication Digitimes that the company would supply Apple.

Seeing more competitors shows it is a market that is expected to grow quite significantly, Meadows said. We are pretty confident we have a significant lead technology-wise.

Hedge funds also point to two joint ventures that IQE runs with universities in Wales and Singapore that make losses but are not recognised on IQE's own income statement.

IQE said it expected these ventures to eventually be profitable, and that they formed part of a long-term plan of developing new technologies in partnership with universities.

The fund with the largest disclosed short position in IQE is Marshall Wace, which was among those that made hundreds of millions of pounds betting against British construction and outsourcing company Carillion before its collapse.

It was also short Imagination Technologies, an Apple supplier whose share price plunged in April after Apple announced it was cutting the company out of its supply chain.

The other six funds with disclosed short positions are Coltrane Asset Management, Ennismore Fund Management, Millennium International Management, Quentec Asset Management, Valiant Capital Management and WorldQuant.

Still do not like the nr of up days vs down days in January and its relative performance vs FTSE during this period.
Hence still boringly watching this one...

btw bermon 1371 "good post"

seconded ..... an interesting read, and i'm happy to sit out the turbulence for the longer term with my current holding

I have sold out. Keep my powder dry until the dust settles.

Not long to wait "Apple Inc. is expected to report earnings on 02/01/2018 after market close. The report will be for the fiscal Quarter ending Dec 2017."

Q4 supposedly ok re sales-it is Q1 onwards that does not look good

as so much has already been telegraphed, how much is already discounted?

I think it is more than Apple. Until the short position diminishes significantly there'll be drip drip drops each day. IMO. Fact is that you can buy cheaper today if you sold yesterday. I started reducing at 1.18. Should have sold the lot then. :)

Apple figures look pretty good, though missed estimates slightly on shipments of most products. Dip of approx 2% in Apple sp after hours. Can't see that their results should impact IQE much.

Apple has $163 billion to burn, and Tim Cook plans to spend it

And the BBC :-

Apple sells fewer phones but profits rise

someone told me i was nuts to hold AAPL .... seemingly not
and AMZN another gem that i am delighted to be holding

meanwhile, to get back on track, it's good to see IQE staging a very modest recovery
clearly all still unsettled by the recent sp crash, and trying to determine if AAPL's cautious outlook for next quarter will have much if any negative impact on IQE

Well those results were the worst kept secret yet. Not sure if they will affect IQE much. Is it really all about Apple? I've seen shorters work before. It is after the froth dies down that they usually start to bite. Doesn't take a lot of ammunition and it can be slow but relentless. I'm staying out until such time as they start to go away in numbers.

a reasonable ploy though arguably current is not a bad level at which to buy if you think the company intrinsically has a good future

Maybe, but I think it still has more risk to the downside. Volatility is decreasing, as well as trades. Often the calm before the storm. I may be wrong. I hope I am wrong. A lot of small PIs get hurt in these games.

same argument would apply if bears about to close ..... but yes, many PIs get themselves over-exposed or have stop-losses triggered

We just need to focus on the good that iPhone X has surpassed expectations. Hopefully the market realises what this means.


From the front page of the telegraph. Read halfway down article

“iPhone X surpassed our expectations and has been our top selling iPhone every week since it shipped in November,” Cook said.

apple-breaks-record-biggest-ever-company-profit-despite-iphone/