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

According to SHARES who recommend a buy, next weeks results will show revenue figures of £88 m for the year to December, up 16%
EBITDA up 30% to £17 million.
2013 EPS of2.1p 2014 EPS 3.3 cutting the earnings multiple from 13.8 to 8.8
A statement from IQE expected re concerns of Qualcom to address market fears.
Broker Libernum suggests medium term price of 65 p.

re - SM has a buy
a target of 65p Yesterday .

Investors Chronicle has good writing also lately............

(IQE: 29p), a global supplier of advanced wafer products to the semiconductor industry, slumped a month ago after Qualcomm, a leading broadband and applications processor vendor in the wireless market, launched a front-end silicon-based radio frequency (RF) module to support 3G and 4G phones. At the time, the share prices of IQE's key customers (RFMD, Skyworks and Triquint) all fell on the news.

However, this looks a typical knee-jerk reaction by investors as technology analyst Vijay Anand at broker Espirto Santo notes that: "Qualcomm's solution is based on silicon, which has inherent physical limitations (consumes higher power at higher frequencies) in comparison to compound semiconductors. While it appears that Qualcomm's use of envelope technology plugs some of the gap, the technology is also available to IQE's customers who intend to (or already have) launched envelope tracking based RF solutions." In fact, IQE has stated that its power management solutions already extend battery life in 4G handsets by around 25 per cent and continue to outperform silicon in other areas including noise and resistance.

Mr Anand also notes that: "The Qualcomm product is an off-the-shelf solution limiting the ability for handset manufacturers to differentiate, whereas the products from IQE's customers are customised to the requirements of handset makers. In our view, Qualcomm largely targets the low-end of the smartphone market." It's worth noting, too, that high-end smartphones have between four and six times as much compound semiconductor content versus a low-end phone. Skyworks' management point out that the low-end silicon-based RF market is tiny and RFMD expects silicon-based RF products to account for less than 5 per cent of its first-quarter revenues. So, in effect, the market Qualcomm is targeting accounts for only 5-6 per cent of IQE's revenues and even then the US giant is unable to offer the same solutions to customers as IQE, given the differences in the technology used.

Espirito Santo is maintaining its 2013 pre-tax estimate at £11.4m based on revenues of £146m to produce EPS of 2.5p. For 2014, the broker forecasts profits of £19.5m and EPS of 3.6p assuming a rise in on turnover to £159m. On that basis, IQE's shares remain attractively rated on less than 12 times current year earnings estimates.

we are at intraday high lately once again ahead of results tomorrow


5 days chart

We are clearly waiting on results tomorrow before a move upwards as evidenced by the buying interest but no move to the upside.

That will do nicely - 60p now the target (to start with!)

The lack of a move upward is clearly to do with the failure to address the Qualcom question

From IQE investor prentation.

"IQE Unfazed by Challenge of Silicon Technology
20/03/2013 14:30 | IQE PLC

price has more to do with a large holder selling, I suspect.

Keep an eye on RNS to find out who

Possibly Bank of America Merrill Lynch as they started offloading more than 38m shares at the end of Feb

But, the trades seem to suggest over the past few days a good deal more buying than selling is taking place

Agreed and that has been the case for the last 4 weeks.

FYI
http://www.iqep.com/investors-shareholderdata/

Great results, great forecast for 2013/14 and further strong buy tips from just about every broker. But the price is falling again.

Loads of large trades at the middle price, what's that all about?

All midle price trades where certainly overhang being cleared and now at the best for some time 29.50 / 30p

After some massive sales this afternoon the position is now that 25 million shares have been sold, net, on the day - and as you point out, the price has now gone up. Confusing.

May be a very large buyer in the wings waiting to mop up

re - confusing

no if you knew that they were not sales, but "Ins" BUY, and now but earlier but now reported.

Some have to learn a lot before making afirmations as such ..... 25 million shares have been sold,

from 4pm and 4.30pm is the time were reporting of large trades ( during the day ) is being done

There is a net difference between buys and sells of 25 million shares on the day, fairly obvious really. I think you may have missed out the word net.

re- net

and were do you take the figure from?

34 million shares were traded today, 4 million odd buys and over 30 million sells. This is around 5 times the daily average for IQE. The largest sell was 2.3 mill. Buys and sells are quoted here and on other boards and are mostly reported in real time but as you say, larger deals are often left until late in the day.

lesson

1- never take the trades on "mam" as accurate as buys or sales
2- Institutions never buy at offer price 9 large trades ), but middle price and if posible at bid price
3- as said earlier, reporting from 4pm and 4.30pm are trades placed at specified price


note on that
how can be that as you said sales and share price rising so much?
you should realised that is not posible.

nice weekend

How nice of you to offer a lesson, even though I'm afraid you seem to have missed the point.

Trades are quoted in other places as well as Money AM and without doubt there were very many reported large sales of IQE today. It is of course perfectly possible for there to be a great number of net sells, or net buys, in the course of a day and the share price to not do what you would expect it to. And there is always a reason for that, and I am interested to know if anyone has a view as to what that may be in the case of IQE.

There are various unsubstantiated rumours around regarding a large short, or that an institution is reducing its stake, or as Oak Apples says above, there could well be a large buyer around waiting to mop up.

Nice weekend yourself.