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

According to the FT:
"IQE is the second most-shorted stock on the London market, with nearly 23 per cent of its free float loaned out."

Barclays comment:
In short, we consider the conclusions (A report by Matthew Earl, a sellside analyst turned short seller) to show a misunderstanding of the compound semiconductor industry, IQE’s position therein and its finances. The focus of the report is on two JVs established in part by IQE, one in Wales and one in Singapore. No new information has been uncovered in the report, as the finances of IQE and these two JVs are readily available via IQE’s annual report, Companies House in the UK and ACRA in Singapore. The crux of the negative report is that a significant portion of IQE’s operating profit was generated due to revenue from these JVs during 2015 and 16, enough so as to cause concern for the author.
We disagree with this conclusion for two key reasons, namely the fundamentals and the financials. From a fundamental point of view, these JVs were not set-up as entities merely to shift funds around to benefit IQE, but rather as links between IQE, academia and other supply chain partners in order to further research and development in the burgeoning field of compound semiconductors. In terms of financials, all is disclosed in public documents which have been audited by independent accountants. As a JV partner, IQE participates significantly in the governance of the JVs, but they are separate legal entities, with their own boards and shareholder agreements. The fact that a significant portion of profit came from these two entities in 2015 and 16 is coincidental and does not signal to us anything sinister. On our estimates in 2017 and beyond, IQE’s licensing revenue from these JVs is de minimis relative to the growth coming from selling its epitaxial wafers into wireless and optical applications, including 3D sensing.
The Singapore JV is less high profile, certainly here in the UK, than the Cardiff one, but we think it worth remembering that Win Semiconductor is another major player in the compound semiconductor supply chain. Today, it is significant provider of foundry services to the wireless RF semi industry and is also the outsourced foundry for Lumentum, making the VCSELs on IQEs wafers for the iPhone X. This relationship between IQE, Win and Lumentum is separate to that of the CSDC JV."

shado fall / oppenheimer invest who knows the truth fund seems to have 5.2% have they seen shadofall BB foget the spelling

I may get a sore bum but I am still sitting tight and -as yet - have no intention of moving in to buy yet

bermon no need to behave like a plonker as uncalled for!!!

We think bermon = mentor = Master RSI. If so, then expect the odd bit of verbal garbage.

if you're right, then he's clearly out of practice :-)

Bermon is Mentor, or vice versa. Its the way he tells it that gives him away. Recognise that accent anywhere.

he must be taking some strong medication then :-)

Cynic think bermon has overdosed as not to be seen anywhere..

which is a shame as i was waiting for his post "buy IQE but NOT until I say so"

more importantly, it's good to see sp ticking up

Well worth a read. Not sure I understand it all, but compelling nevertheless:

http://muddywatersresearch.com/research/iqe/mw-is-short-iqe/

herebelow ......
more nastiness .....

MuddyWaters also saying to short IQE
MW is short $IQE LN. We see it as an egregious accounting
manipulator. We adjust downward reported net income for 2015 and
2016 down 58.5% & 25.4%. We adjust 1H 2017 net income down by
approximately 69%.

Talk about roller coaster ride I thought VRS was bad but IQE is really scary, I'm not in these don't think my ticker could take being in both. Good luck though.

This will not stop, in my opinion, until there is an independent audit and opinion of the P&L. I have been half tempted to buy back in but none of the shorters have gone away, even at these prices. They must feel very sure of themselves.

IQE plc

("IQE" or the "Company")

Response to Share Price Movement



IQE plc (AIM: IQE) notes today's share price movement, which follows a report by Muddy Waters Capital LLC ("Muddy Waters").

Allegations contained within the report were addressed in IQE's announcement on 5 February 2018, in which IQE responded to a similar report published by ShadowFall Capital & Research LLP ("ShadowFall"). Information in the Muddy Waters report is either factually inaccurate or has previously been disclosed in IQE's annual reports and financial statements. It is also important to note that like ShadowFall, Muddy Waters also holds a short position in IQE and so duly profits from any near-term reduction in IQE's share price.

IQE continues to assure shareholders that the Company holds itself to the highest standards of corporate governance, transparency and integrity. Further details about the Cardiff joint venture ("CSC") with Cardiff University, and in particular its third-party engagements and expanding customer base can be found here: http://www.compoundsemiconductorcentre.com/projects

IQE re-iterates that the CSC is a separate legal entity with a standalone board, separate management teams and a joint venture agreement that establishes governance procedures and decision making.

CSC staff are employed under their own contracts. IQE provides support services including recruitment, to avoid the duplication of costs. The costs incurred by IQE are recharged at cost to CSC, as disclosed in IQE's annual reports and financial statements.

IQE's investment in intangible assets is clearly disclosed in both its interim reports and annual report and financial statements. As disclosed in IQE's H1 2017 interim report on 5 September 2017, IQE increased its investment during the first half of 2017 in relation to the introduction of a new VCSEL product for 3D sensing that has subsequently been adopted in mass market consumer applications. This product ramped strongly during the second half of 2017, which, as reported in IQEs December trading update has enabled a doubling of IQE's photonics sales, and provides for strong continuing growth.

As announced in the pre-close statement on 20 December 2017 and in the response to the ShadowFall report on 5 February 2018, the Company re-iterates that it expects full year revenue to be ahead of market expectations, and to be not less than £150 million for the year ending 31 December 2017. Wafer sales are on track to deliver strong double-digit growth in 2017 and to continue to diversify, while annual growth in Photonics is also expected to achieve triple-digit growth. The Company remains confident in its outlook for 2018 and beyond. The Group is scheduled to report its full year results for 2017 on 20 March 2018, and will provide forward looking guidance at that time.

You can bet the institutional shorters will respond to that, so will be interesting to see what happens.

Notifiable short positions slowly easing. Still over 10% however