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

It did not last long the retracement, second day on the bounce

From Investtech last nigh TA provider to the banks and Institutions....

Positive Candidate -Medium term, Sep 16, 2010 Analysis Explanation

IQE PLC has broken up from an approximate horizontal trend. This signals a continued strong development, and the stock now meets support on possible reactions down towards the ceiling of the trend channel. Has risen strongly since the positive signal from a rectangle formation at the break through the resistance at 21.21. The objective at 26.78 is now met, but the formation still gives a signal in the same direction. The stock has support at pence 20.00. The stock is overall assessed as technically positive for the medium long term.

Period Vol.bal. Volatility Liquidity +/- %
1 day - 3.06% 53.85 +7.30%
5 days -2.76 10.07% 144.67 -0.77%
22 days 32.03 29.67% 92.35 +40.22%
66 days 37.96 59.22% 52.44 +88.60%

More detail on the Investec note - apologies if this has already been posted.

Investec comment
IQE's recent share price move may appear dramatic, but we believe it to be based on a combination of improving fundamentals, better investor perception, and a backdrop of forecast prudence. We upgrade our full year estimates by c0.8m at the PBT level, reiterate our Buy stance, and upgrade our Target Price from 27p to 37p, now based on 15x 2011E EV/EBITDA.
Key points
H1 performance solid The group delivered a strong H1 performance, with material growth across the business balancing solid progress in the main Wireless division and very promising developments within Optoelectronics (especially driven by finger navigation, high speed USB and solar). We make material (c18%) upgrades to our 2010E PBT estimates.
Cash generation and CAPEX Cash generation from operations was some 1.9m (up from 0.1m last year), as investment in working capital tracked revenue growth. The group has also capitalised some 1.7m of development costs, up from 0.9m in the prior year. We are comfortable with this step up, as the uplift relates to the group qualifying a number of its machines across a range of customer products - a signal both of IQE's position in its marketplace, and of revenues to come in future periods.
Valuation and recommendation IQE is currently valued at c30x our 2010E EPS, falling to c23x 2011E. We believe that market growth will continue to underpin forecast delivery and potentially further upgrades. IQE remains, in our view, an attractive and leveraged play on smartphone trends, and other - even more exciting - markets. In particular, we anticipate further newsflow from the optical USB and finger navigation opportunities. We strongly reiterate our Buy stance, and suggest that recent performance may be just the start of a long and rewarding journey.

New Broker note out......

IQE ALL-AIM Technology Buy 37 33.25 11.3% Investec


Target SP 37p upside 11.3%

Jim Slater tips IQE in the Investors Chronicle today:

Jim Slater on hot shares and heroin‎
Investors Chronicle - 8 hours ago

He names four in particular: Advanced Medical Solutions, Andor, Volex and IQE.

IQE share price has now doubled since the beginning of July.
The chartist in SHARES,a few weeks back, was very bullish about the long term outlook re possible spectacular returns.
In hindsight he has been pretty accurate so far.On 4th of August he gave an initial target of 38(now at 35) with more to follow

Certainly on a roll at the moment,-up another 1.5 this morning,at 36.5

IQE plc
Acquisition
30 September 2010
IQE plc

Acquisition of Galaxy Compound Semiconductors Inc, and 20.8 million fundraising
for capacity expansion and strengthening of balance sheet

IQE (AIM: IQE, "the Group") the leading global supplier of advanced wafer
products and wafer services to the semiconductor industry, has acquired Galaxy
Compound Semiconductors, Inc. ("Galaxy"), a specialist manufacturer of antimony
substrates used in infrared technology, for up to $14.15m in cash.

IQE also separately announces its intention to place 65 million shares to raise
20.8m gross to fund the acquisition, selectively expand IQE's manufacturing
capacity, repay debt and strengthen the balance sheet to position the Group for
accelerating future growth.

Acquisition highlights

Immediately earnings enhancing
Consideration between $5.5m and $14.15m based on multiple of up to 5.5x
Galaxy's 2010 EBITDA
Strategic acquisition complements IQE's existing IR capabilities at Wafer
Technology, Milton Keynes, UK, enables multi-site manufacturing, provides access
to large US market, and creates significant technology benefits
Positions IQE as world's leading provider of antimony based infrared (IR)
substrates, with diverse applications in imaging for commercial and military
applications
Forms part of the Group's strategy to be the leading global supplier of
advanced optoelectronic materials and adds additional IP
Galaxy's unaudited 2009 accounts showed revenues of $3.0m, EBITDA of $0.8m
Management and key personnel to remain

Fund raising

Intention to place 65 million shares at 32p to raise 20.8m
Use of proceeds to:
o Fund acquisition and invest in Galaxy's growth
o Selective investment to expand the Group's existing manufacturing
capacity
o Repay approximately 10m debt
o Strengthen balance sheet to enhance growth prospects

Dr Drew Nelson, IQE chief executive, said:

"The strategic acquisition of Galaxy positions IQE as the global leader in the
rapidly growing market for antimony based infrared materials that are crucial
to advanced imaging systems in a variety of commercial and military
applications. Galaxy provides IQE with new manufacturing capacity, new products
and significant new clients.

"With funds raised from today's Placing, IQE can also selectively expand its
existing manufacturing capabilities and a strengthened balance sheet with net
funds will position the Group for further and more rapid growth"
Conference call

There will be an analyst conference call at 08.00 this morning. Please contact
Lucy Moseley at lucy.moseley@collegehill.com or on telephone 020 7457 2020 for
details.
Rationale for the acquisition

Infrared materials are a rapidly growing segment of the opto-electronics sector
and the directors of IQE believe the acquisition of Galaxy will open up major
opportunities in global imaging markets. IQE intends to support the expansion of
Galaxy by providing $1 million of capital expenditure in 2011.

Galaxy was established in 1999 and is based in Spokane, WA in the United States
of America. Its key products are Indium Antimonide (InSb) and Gallium Antimonide
(GaSb) substrates, key materials used in infrared imaging systems. Its
products are used in a wide range of applications including thermal imaging
cameras, forward-looking IR for navigation through darkness, IR homing missile
guidance, detection of heat sources, magneto resistance, biomedical imaging and
ultra high speed electronic circuits.

Following the acquisition, IQE will be the world's leading supplier of antimony
based IR materials, gaining significant new clients including major US defence
contractors and other commercial customers in the IR imaging industry.
Consistent with its multi-site manufacturing strategy, IQE will be able to
provide IR materials from independent manufacturing facilities at Spokane, WA,
and at IQE's Wafer Technology operation in Milton Keynes, UK.

The acquisition will be immediately earnings enhancing. In the year ended 31
December 2009, Galaxy's unaudited management accounting information indicated
revenues of $3.0 million, earnings before interest tax depreciation and
amortisation ("EBITDA") of $0.8 million, profit before taxation of $0.7million
and net assets of $1.6 million as at 31 December 2009.

IQE will be retaining the Galaxy management team and key technical personnel
following the acquisition.
Consideration
IQE has agreed to acquire Galaxy for a consideration based on a multiple of up
to 5.5 times Galaxy's
EBITDA for the year ended 31 December 2010, subject to a minimum consideration
of $5.4 million and capped at a maximum total consideration of $14.15 million.
The consideration will be settled in cash.

IQE is required to make quarterly payments to the vendors of Galaxy commencing
on 31 December 2010 which in aggregate will total $2.5 million. A payment of the
final consideration less a retention of approximately $0.6 million will be due
for payment on 31 March 2012. The retained $0.6 million will be payable on 31
December 2012.

If the volume weighted average closing price of IQE shares is greater than or
equal to 60 pence over a consecutive four week period, the payment terms of the
final consideration will be accelerated, but will not be payable before July
2011.

Fundraising
IQE has today also announced a fundraising to raise 20.8 million ( the
"Placing") via the placing of 65 million new ordinary shares of 1 pence in the
Company (the "Placing Shares") with institutional investors at a price of 32
pence per Placing Share (the "Placing Price"). The Placing is being carried out
using the existing share authorities of the Company.

Further details of the Placing are contained in a separate announcement. Funds
raised will be used, inter alia, to satisfy consideration due to the vendors of
Galaxy.

The Placing is conditional upon, inter alia, satisfaction of the placing
agreement between Execution Noble and IQE and admission of the Placing Shares to
AIM, a market operated by the London Stock Exchange plc ("Admission"). Admission
of the Placing Shares is expected to occur on 5 October 2010.
Enquiries:
IQE plc +44 29 2083 9400

Drew Nelson
Phil Rasmussen
Chris Meadows
Execution Noble (Nomad and Broker) +44 20 7456 9191

James Bromhead / Richard Crawley
College Hill +44 20 7457 2020

Adrian Duffield / Carl Franklin

[HUG#1447801]

The market certainly likes this acquisition.
A lot of buying and up 1.75 points.(34.75)

Most encouraging to see 60 mil sells but the SP climbs and with a very small spread - interesting !

50p soon? I think so!

It does seem the market liked the news ( adquisition and share placing ) with a new high closing for the share price

1 next stop

A main article buy reccommendation in todays' Shares.
They say that the recent acquisition of Galaxy Comm. gives them a strong entry into the U.S. military market.
Buy at 37.5

A key breakthrough today of 40 p barrier.-up 3 at 41.25.further gains must be on the cards.

Looks like finishing up 3.5 points at 41.75

Master RSI should appear any minute, he always does when the rise comes!

IQE,mentioned in Shares mag

IQE to trip light fantastic

Rumour has it Apple is planning to install Intels next generation data transfer technology as standard in all its computers already early next year. Welsh wafer group IQE is a key partner and materials supplier to Intels light peak technology, previously thought to be 12 months away from launch. The new optical interface technology enables data transfers at twice the speed of todays universal serial bus cables.

A long term winner in my estimation.

IQE is a key partner and materials supplier to Intels light peak technology

http://www.techeye.net/hardware/apple-signs-up-to-intel-light-peak