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

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.

Some concerns about OFT probe , cited in earlier posts, probably unjustified, but I quite agree.

earlier

ON THE UP TODAY

A very strange thing happen at close yesterday as the "UT" 26.50p was well below spread, meaning the bolt at the order book anticipating the end of the movement down with CAPITULATION

IQE - Cheap as chips
By Tom Winnifrith

PUBLISHED: 28 Feb 2013 @ 21:18 | Comments (0) | More info about Tom Winnifrith

Print
In November I commented that shares in AIM-listed IQE plc (LSE:IQE) – a company headquartered in a land where no-one has ever, ever molested a sheep which provides products and services to the global semiconductor industry – remained a buy at a then 28.75p share price. By the middle of this month the shares were trading at 36.5p but they fell back significantly at the end of last week and currently trade at 28.25p. The following reviews the reasons why the shares were sold off and my stance here.


© Image copyright uwehermann
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, commented “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. However, although this looks an attractive deal for IQE, I considered that the shares offered strong value at a touch more than the now current price before the (January) acquisition of Kopin. With earnings per share forecast to rise to 2.2p+ this year and comfortably more than 3p in calendar 2014 (and circa that level even without Kopin) and with IQE a rare UK technological leader with significant, particularly intellectual property-based, barriers to entry and serving global growth markets, I stand by that view. I continue to believe the company’s profile merits a valuation of at least 15x earnings – with a 59p share price hit in early 2011 a signal that the re-rating could easily be more dramatic & distinctly justifiable if the Kopin deal goes through as I assume that it will. I view the present valuation as an unexpected opportunity for those who missed out before the shares appreciated previously to get on board.

Further detail on my forecasts for IQE and how the stock should be valued can be found HERE

IQE is one of a number of companies I follow closely on the premium Nifty Fifty website which I produce with Steve Moore. We were the team that delivered an average gain per tip of 42.7% on t1ps over the 12 years after I founded that site.

Another trying day, but at the end of the day someone is playing silly b#ggers for the last couple days

Thursday 07 March, 2013

IQE PLC

IQE plc :Dr Drew Nelson joins EU High Level Group on Key Enabling Technologies

Cardiff, UK, 07 March 2013: IQE plc (AIM: IQE, "IQE" or the "Group"), the leading global supplier of advanced semiconductor wafer products and services to the semiconductor industry, announces that IQE's CEO and President, Dr Drew Nelson, has joined a high-level industry group to advise the European Commission (EC) on the implementation of Key Enabling Technologies (KETs).

The formation of the group was announced by Vice Commissioner Antonio Tajani last week, together with the signing of an MOU between the European Investment Bank and the EC to support KETs. Dr Nelson is the only UK representative amongst the group of 35 industrial leaders from across Europe.

The EC has identified nanotechnology, micro-/nanoelectronics, industrial biotechnology, advanced materials, photonics and advanced manufacturing technologies as KETs that are essential for Europe to regain and maintain a global leadership in the face of intense competition from Asia and North America.

The impact of KETs cuts across world leading industries including the automotive, chemicals, aeronautics, space, health and energy sectors and, as such, will form a significant focus for European funded programmes over the coming years. This will enable the EU to translate its dominant research and development (R&D) base into the production of goods and services needed to stimulate growth and employment.

Dr Drew Nelson, President and CEO of IQE Group, said:

"It is highly encouraging that the EC has recognised the global importance of Key Enabling Technologies in shaping the future of Europe in the face of stiff global competition. EC initiatives included in 'Horizon 2020' aim to bridge the funding gap - often referred to as the 'valley of death' - that has held back EU countries from translating excellent R&D expertise into world leading products and services.



"I am delighted to accept the invitation to join this high level group as the only UK representative and look forward to helping Europe regain a global leading technology position."

The EC press release is available at: http://europa.eu/rapid/press-release_MEMO-13-150_en.htm

It appears to be a good business in the right market. What are their profitable products?
Any Growth?

Winnifriths tipped them so get selling ;)

you do not like - Winnifrith - it seems, many don't either

but are you any better on picking up good value on shares?

just in case do you own research, other wise you are wasting your time here

-----------------

there is some legs today on the share price, the bounce is due after the sharp drop.

2 x 6.7m buys at full ask earlier

:-)