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

IQE plc : Completion of Acquisition of Kopin Wi...
HUG


Cardiff, UK, 16 January 2013: IQE plc (AIM:IQE, "IQE" or the "Group"), the leading global supplier of advanced semiconductor wafer products and services to the semiconductor industry, announced on 10 January 2013 the acquisition of the compound semiconductor epiwafer manufacturing business ("Kopin Wireless") of Kopin Corporation, Inc. (the "Acquisition"). The Company is delighted to confirm that it has now completed the Acquisition.

IQE: Investec shifts target price from 23p to 25p and still recommends to sell.


Sold my holding

Given as a buy in todays' Shares. - Target 59 p.

A good deal of buying interest this morning and now through key resistance level at 35.

18 month high

One good RNS and its next stop 60p following Shares article

OFT investigation of Kopin purchase!

How long does this take, and what is the likely scenario ?

the more you think about it the less credibility this oft news has to it, there is no way iqe board went ahead with this buy of kopin without doing some serious checks including what if anything the oft may think, i expect iqe will put out some sort of retort shortly in diplomatic language to the effect that they have no case to answer

Has there been news that I have missed - massive drop ! However, its time to hold tight which is confirmed by the number of buys going on - they cant all be wrong surely.

I have heard nothing, but hope to hear something from IQE.

Agreed - MMs are no doubt pushing IQE for a statement. Best it is not delayed too long.
Is long term for me anyway

Certainly, and the fact that 70% of the trades were buys. Did you note the late buy of 5 million shares ?

US giant Qualcomm, the world's leading supplier of chips for mobile phones, said it would enter IQE's radio frequency market.

Qualcomm introduced a new silicon-based radio frequency chip which could threaten IQE's product base, sending shares in the UK company down 4.75p to 28.75p in heavy trading volumes. Analyst Eoin Lambe at Liberum Capital said:


Importantly for IQE Qualcomm's solution is based on silicon (CMOS) while to date most of the radio frequency chips in mobile phones have relieved on IQE's epi wafers. This is obviously negative for IQE. Qualcomm has not released any detailed specifications at this point. Speaking to IQE, they believe that Qualcomm will initially target the low end of the Chinese smartphone market while most of the value is at the high end. No change to numbers but may dampen sentiment towards IQE.


He kept his buy recommendation on IQE, however, as did Vijay Anand at Espirito Santo:


We believe [Qualcomm's] silicon-based product primarily targets the low-end handset market which we estimate accounts for only 5%-6% of IQE's revenues. To the extent that silicon has inherent physical limitations versus compound semiconductors, we believe that Qualcomm's move is unlikely to have a material impact on IQE.

Broker views

22 Feb IQE PLC Liberum Capital Buy 28.75 target 40.00 Reiterates
22 Feb IQE PLC Espirito Santo Execution Noble Buy 28.75 target 55.00

After the sharp drop during the last week, recomendations are appearing >>>>>

Steve Moore: IQE Buying Opportunity

Shares in IQE plc (LSE: IQE) were trading at more than 35p last week before falling back to close the week at 28.75p – where they trade now. There are reasons why the shares were sold off but I do not regard them as valid reasons and I believe that investors now have a great opportunity to buy into a cracking long term growth story at a great price. Snap it up quickly. IQE is the free share tip for Monday here on onefreesharetip.com

The major root cause of the sell off looks to have been US-based Qualcomm announcing a silicon-based product which it claims will be able to support 3G and LTE (4G) phones as well as the low-end phones such solutions have been primarily limited to. They have been limited thus as compound semiconductors, as focused on by IQE, offer inherent efficiency, noise, insertion loss and resistance advantages over silicon whilst also having shorter, less expensive design cycles. Moreover, the Qualcomm offering is a generic, off-the-shelf one - unlikely to appeal to the mid- and high-end of the market where differentiation is a key aspect and IQE’s customers customise for handset manufacturers.

It therefore seems likely that the new Qualcomm offering is set for the low-end of the smartphone market and IQE’s house broker, Espirito Santo, notes “the low-end handset market… we estimate accounts for only 5-6% of IQE’s revenues” and that “it is worth remembering that a high-end smartphone has 4-6x higher GaAs (semiconductor) content versus a low end phone”.

Fellow brokerage, Canaccord, has today emphasised “we make no changes to our forecasts… we believe the 13% share decline is an overreaction”.

There is also an Office of Fair Trading review of IQE’s recent acquisition of the compound semiconductor epiwafer manufacturing business, Kopin Wireless to consider. However, although this looks look an attractive deal for IQE, the shares look great value even without Kopin.

With earnings per share forecast to rise to 2.2p+ this year and comfortably more than 3p in calendar 2014 ( without Kopin but potentially closer to 4 with) and, as a rare UK technological leader with significant, particularly intellectual property-based, barriers to entry and serving global growth markets, a premium (15x +) earnings multiple continues to look fairly justifiable here. This suggests a target price of 45p if (as is unlikely) the deal is blocked but 60p if it goes through. Either way at 28.75p the shares are a buy.

Proverbs 26:11

You mean it would be folly to get back in?

The trouble with these proverbs, is that you can usually find another meaning exactly the opposite.

i.e. He who hesitates is lost. Alternatively, Look before you leap !

one to watch at 27.625

Drop recently was overdone, profitable company with very low rating for a high tech. still on the UPTREND though the bottom of the trend line, now on a very narrow spread. Buyers are appearing at this low prices.