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

A big write up in today's Shares' ( 2 full pages) accompanied by a buy reccommendation.

Thanks for that CP - regretfully the punters are so far not up for it. Very odd after so much good news. I have increased my holding.

The real problem seems to stem from a lack of understanding of what IQE really does. I thought the write up was very good though, in that it helped to spell things out in easily understandable terms.

This might help to give the stock a boost. It seems to me, that the biggest problem is a lack of understanding of what IQE is all about !

IQE plc
IQE to present at the 39th Cowen Annual Technol...

Cardiff, 25 May 2011: IQE, the leading supplier of epitaxial wafer growth
services for the wireless, optoelectronic, Solar and solid-state lighting
industries today announced that it will be presenting at the 39th Cowen Annual
Technology, Media & Telecom Conference to be held at the New York Palace Hotel,
New York, NY, on June 1, 2011.

Chief Executive Officer and Group President, Dr Drew Nelson, will be presenting
at 10:15am (ET) on Wednesday, June 1, 2011, at the New York Palace Hotel, 455
Madison Avenue, New York, NY, 10022. Dr Nelson will present an overview of IQE's
technologies, products and markets.


CONTACTS:

IQE plc (+44 29 2083 9400)
Chris Meadows

Cowen Group (+1 617 946 3869)
Brian Perry

This news should help to give the price a boost.

IQE plc
Trading Update
IQE plc

Continued strong growth in revenues and profitability

Cardiff, UK. 14 July 2011: IQE plc (AIM: IQE, "IQE" or the "Group"), the leading
global supplier of advanced semiconductor wafer products and wafer services to
the semiconductor industry, provides an interim trading update for the six
months to 30 June 2011.

The Group expects to report first-half revenues of at least 38 million and
EBITDA of at least 6 million, despite the adverse impact of foreign currency
exchange. Compared with the first half of 2010, this represents underlying
growth in US dollar revenues of over 20%, which includes approximately 1m from
the Galaxy business acquired in September 2010.

The strong organic revenue growth has been driven by both the wireless and opto
electronics markets. Wireless sales have been driven by sales of Gallium
Arsenide ("GaAs") products into wireless devices and strongly supplemented by
the rapid growth of Gallium Nitride ("GaN") sales into the radar and wireless
infrastructure markets.

Organic revenue growth in the optoelectronics market has been driven across a
range of end markets including IQE's world leading Vertical Cavity Surface
Emitting Laser ("VCSEL") technology for consumer and industrial applications,
optical communications, and solar power.

The Group continues to make good progress with its electronics division, which
is focussed on combining compound semiconductors with silicon to create the next
generation in advanced semiconductor materials for a broad range of ultra high
speed and high performance applications.

The outlook for the second half remains upbeat. The Board expects continuing
robust growth in the Group's core wireless and optoelectronics businesses, as
demand for both industrial and consumer end user devices containing IQE products
remain strong. This confidence is strengthened by the continued progress being
made in new product developments and qualifications.

Dr Drew Nelson, IQE's Chief Executive, said:

"The continued growth in demand for our wireless products and accelerated growth
for our optoelectronic wafers have enabled us to maintain our rapid growth.

"The prospects for the Group are very exciting and, with our highly geared
business model, provide the Board with considerable confidence in a continued
improvement in financial performance for the second half."

IQE expects to report its interim results on 7 September 2011.

I selected the shares earlier on at the "UPS" thread ....

Master RSI - 3 Aug'11 - 08:43 - 72 of 72 edit
UPS
IQE 28.375p ( 28.25 / 28.50p )

reasons: Well marked dow lately, buying is taking place on a stronger order book and a very small spread. The outlook remains upbeat with robust growth.

30.50 /30.75p -0.375p

the recovery from the last fall is going on, as large trades are appearing on the ticker, volume now 12M,
the last buying trade for 50K paying premium 30.90p

Any views on the scale of this recovery. The price is down nearly 50 % from highs of a few months back. Mind you, many stocks are taking a bashing at the moment.

Notice of Interim Results

IQE plc (AIM: IQE) the leading global supplier of advanced semiconductor
wafer products and wafer services to the semiconductor industry, will be
publishing its interim results for the six months ended 30 June 2011 on
Wednesday, 7 September 2011.

Drew Nelson, Chief Executive Officer, and Phil Rasmussen, Finance Director,
will be presenting the results to analysts at 9.30am on Wednesday, 7
September 2011 at the offices of College Hill, The Registry, Royal Mint
Court, London, EC3N 4QN.

Stock to Watch: IQE
By Edmond Jackson | Tue, 27/09/2011 - 08:30

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

The purchase of 93,800 shares at 26.5p by IQE's (IQE) group business development director, even when fulfilling a commitment as part of his remuneration package, offers some respite to shareholders in this AIM-listed microchip wafer supplier that has seen its price more than halve from 60p since last spring - capitalising the company at just over 130 million.

This is your classic 'high beta' share, one that tends to be more volatile than the market, hence a darling on the way up and curse on the downside. Its fundamentals are attractive, up to a point: IQE's microchips are used by the top tier of smartphones and the company proclaims growing market share over 30%. Its components meet the needs of a wide range of other wireless devices and high-bright LEDs in lighting applications, for example. Increasingly, such customers want to outsource production to specialists like IQE which is now an international operation. You are pressed to find a similar UK small cap with such a quality growth story.

So why such share price volatility? If you appreciate the reasons why, this should help you trade IQE successfully - as this is indeed a potent smaller company to follow.

First, if there is a recession, then various 'must-have' consumer products may become more discretionary items - ie what you can do without when times get tighter. This feeling need not apply even to the majority; what counts in economics is the marginal effect, whether more people are warming to an idea or dropping off. Analysts have predicted continued growth in smartphones which only account for 28% of the total handset market. A recession can still dent people's rate of upgrading phones, however, and I recall analysts' bullish projections for mobile gaming which faltered.

From IQE's figures, first-half 2011 revenue growth was 16% to 38.3 million compared with 54% to 33 million reported a year ago; albeit that in constant currency terms the recent growth was 23%. While this remains very healthy and it was easier to grow fast from a lower base, the market sees a mis-match. IQE's chief executive conceded in his outlook statement: "Our overall upbeat outlook is tempered by recent growing uncertainty in the global economy... potential to impact customers' inventory levels... although we have not seen any evidence of this."

Secondly, IQE is an operationally geared company meaning that changes in revenue get magnified in the bottom line - for example first-half 2011 pre-tax profit rose 28% to 2.8 million compared with pre-tax profit tripling for 2010 as a whole with overall revenue up 38%. That's fine in a benign scenario, but with some commentators talking of a depression if Europe falls apart and spreads financial trouble, it has twigged investors out of this kind of share.

Third, all these changes affect IQE's price-earnings multiple. As demand for smartphones kicked in during 2010, Company REFS shows the P/E multiple averaging 46 times (on an historic basis) and 30 times during 2011. The shares soared from a trading range in the pence teens during early 2010 to near 50p as IQE stood out growth shares generally got harder to find. So there was a scarcity value enhancing the rating. Since then however, the marginal effect of selling by enough experienced investors who know what a recession can do to the ratings of illiquid small caps, has got the upper hand.

Market scepticism

Assuming IQE achieves forecasts for 9-10 million pre-tax profit this year and 11.5-12 million in 2012, at 26p currently the shares are on a prospective P/E of about 15 times falling to near 12. This compares with annual earnings growth projected over 20% for 2011 and 2012, so the market is sceptical it can be achieved and likely being harsh because the normal market size is just 10,000 shares.

There is no dividend, this being a classic growth company reinvesting, so it does put all the emphasis on earning power without a yield prop on the downside.

But this is effectively pricing in a recession and profits warning, even if you suspect one would clip a few more pence off the shares - at least initially. The business development director's buy at 26.5p looks a logical move now the company is out of its closed period, even if he is obliged to.

Downside ought to be limited from here. The shares are below a 65 million placing exactly a year ago at 32p which raised some 20 million amid a small US acquisition, and plans to expand manufacturing capacity, repay debt and strengthen the balance sheet. The trend in cash-at-bank has gone from just 1.4 million at end-June 2010 to 12.5 million at end-December and 6.1 million at end-June 2011. Borrowings are just over 5 million, mainly long-term, with finance costs down to 192,000 against interim operating profit of 3 million. So IQE is in robust shape to deal with a recession if it happens.

Part of the difficulty is separating sentiment from fundamentals.

IQE is the kind of enthusiasts' share, liable to run up and down but even if growth rates do moderate for a while, the company should have an increasingly attractive long-term future as wireless and LEDs become mainstream. Company REFS shows normalised pre-tax profit slipped from about 3 million to 2.4 million from 2008 to 2009, the last downturn - hardly a disaster.

The shares traded down to 4p with the bear market low, and they won't be immune to market maelstrom. But IQE's fundamentals are shaping up well as a long-term stock to watch and trade.

For more information see www.iqep.com.

Share trading with Interactive Investor. Why not use our stock filter to apply different criteria to over 3,700 shares in order to help your investment decisions?

KEEP an EYE

24.875p ( 24.75 / 25p )

after being down for a while is seems now is ready to go places, volume just a bit better than the last couple days

another nice rise today and moving to 29p at close +1.50p

and up to 30p today, certainly oversold earlier

an another good rise this morning to 31.25p +2.25p

Breaking 30 looks promising. In my opinion the shares had more than halfed without good reason.
IQE is one of the most undervalued stocks in the entire market according to some .

         THE FUNNY SIDE OF LIFE

        
I struggle with situations were everything is taken over-seriously,
It is of course important to be serious and respectful to posters,
but they too will benefit from a warm environment rather than a fraught one.

We all have different ideas of humour, so if you are easily offended, please avoid this post.

It had reached a high of 33p during last Friday trading, what a turnaround in 10 days

and 35.50p today

easy to pick up undervalued stock if one knows how.

Undervalued even more today .. shocking.

Inventories is the problem and six month of lower revenue............


IQE revenues hit as customers 'correct inventories'

IQE warns that its second half revenues are likely to be slightly lower than the first six months.

The company - a global supplier of advanced wafer products - said a small number of its major wireless customers had advised that an inventory correction was affecting their forecast short term demand.

IQE says this appears to reflect a combination of some market share shifts between chip companies and the difficult macroeconomic environment.

IQE said the board had taken immediate actions to mitigate the impact on profit and cash.

And it says that as a result of these actions, coupled with improved margins due to a favourable product mix, the board expects EBITDA profit will continue to grow sequentially, both half on half in 2011 and for the full year against 2010.

IQE is an existing supplier to the chip companies that are benefitting from these market share shifts, albeit to a lesser extent.

The group expects that these shifts are only likely to affect IQE's revenues in the short term - Q4 2011 and Q1 2012 - until the qualification of both additional capacity and new products with these customers is complete.

Several qualifications are already in progress and are being accelerated at the customers' request.

CEO Dr Drew Nelson said: "It is clearly disappointing to have to report that inventory corrections by some of our major customers will impact revenues for the fourth quarter of 2011

"We are engaged in increased and accelerated qualification activities which should strengthen our market share across the customer base and help further mitigate individual customer risk.

"One such significant qualification with a major Japanese group has already been completed, whilst others are expected to be complete over the coming three to six months."