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

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

strikes me that there is much specious shenanigans going on in an attempt to drive the price down unfairly but for the perpetrators benefit

i have no pretentions to being an accountant or analyst, but it seems to be that IQE has properly answered the allegations ..... time will tell

As I posted on the 5th Feb, the FT reported that 23% of IQE stock was out on loan.
Only 11.75% of that was declared short interest, but (I may be wrong) I think they said that this was because shorting institutions who do not fall under UK investment rules do not declare their short interest. So the whole 23% may be due to shorters. Are there any other reasons why stock is out on loan?

An addition to the plot:
https://uk.reuters.com/article/uk-cardiff-iqe/cardiff-university-defends-joint-venture-with-apple-supplier-iqe-idUKKBN1FT2PK

Statement from Cardiff Joint Venture Partner

Further to the announcements made on 5 February 2018 and 8 February 2018, IQE notes the following statement provided by its Cardiff joint venture ("CSC") partner:

"Cardiff University has invested equity of £21.8M in the Compound Semiconductor Centre. IQE contributed their share in hardware, infrastructure and licensing intellectual property, all independently valued. The University entered into the Joint Venture as a strategic investment to ensure our world leading research has a well-founded route to commercialisation. Several project wins have been announced within the last year. Co-owned and controlled by Cardiff University and IQE, CSC applies corporate standards of governance including an independent chair, regular joint board meetings, annual reports and published accounts. The University is represented on the CSC board by appropriately qualified directors."">

Appointment of New Auditor


IQE (AIM:IQE) would like to notify investors that it will be updating its investor relations website shortly to reflect the appointment of KPMG LLP ("KPMG") as its new auditor, following a competitive review process in December 2017. KPMG will audit the Company's 2017 financial results, which are due to be published on 20 March 2018. KPMG replaces PricewaterhouseCoopers LLP ("PwC") who had acted as IQE's auditors since 2005.

As part of the handover process, PwC provided the Company with a written statement which confirmed there were no matters which needed to be brought to the attention of the Company's members, creditors or directors. This announcement is not required under the AIM Rules, but in the context of the two recent broadly similar and misleading reports published by funds with a short position in IQE, the Company wishes to go above and beyond the disclosure requirements as stated under the AIM Rules. The Company holds itself to the highest standards of transparency, governance and integrity.

slowly recovering this morning (+6.5% at 107.5) and the order book looks balanced, but it's not exactly convincing

nevertheless, IQE have put out a statement today (see post above), and there is no more they can reasonably do to defend their position, which de facto means to discredit institutional shorters claims

I agree that the company has done all it needs to do wrt the balance sheet claims. Yet the disclosed short positions have hardly wavered. Is there another shoe to drop or is it that they simply think it is still overvalued? I could point them to other grossly overvalued companies but we won't go there. :)

i have no idea, but the way these hedge funds operate can be somewhat questionable, and of course their comments are never going to be unbiased to their own benefit

Precisely ! It would be like shooting yourself in the head just for the fun of it.