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

20 Sep 2013 IQE PLC IQE Liberum Capital Buy 0.00 28.25 40.00 40.00 Reiterates

SP TARGET 40p.

BROKER VIEWS SO FAR......

IQE Broker Views

Date Broker Recommendation Price Old target price New target price Notes
20 Sep Liberum Capital Buy 29.13 40.00 40.00 Reiterates
19 Sep Canaccord Genuity Buy 29.13 65.00 65.00 Reiterates
19 Sep N+1 Singer Buy 29.13 45.00 45.00 Retains

Norwich & Peterborough Building Society

Expanding into solar technology helps IQE, which makes phone chip wafers, post a record set of results

By Peter Campbell

PUBLISHED:21:58, 19 September 2013| UPDATED: 21:58, 19 September 2013

The Cardiff-based technology firm has already cornered the market for gallium arsenide – a material that allows microchips that use it to run faster and use less power – by signing deals with every major phone chip provider.


Now it has put its technology into the next generation of solar panels, called CPV, which analysts say could be a £300m market within five years.

‘We’re now the technology leader in a market that will be bigger than wireless in a very short space of time,’ said finance director Paul Rasmussen. ‘These results are testimony to the transformation we have achieved over the last 18 months.’


The company’s six-month pre-tax profits hit £2.6m, but when accounting quirks were taken out its profits increased ten-fold to £5m after revenues nearly doubled to £63m.


The shares dipped 2.25p to 28.25p.


Read more: http://www.thisismoney.co.uk/money/markets/article-2425602/Expanding-solar-technology-helps-IQE-post-record-results.html#ixzz2fQH7TMtm
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If low volumns is the judge - some of us our jumping ship - not yet time to man the lifeboats imo

My problem, and I expect most other punters as well, is understanding why the stock is going down rather than up.
I haven't heard yet a legitimate reason, though there must be one.

i could understand if the results weren't good, but they were excellent and most analysts are saying Buy .

chessplayer, it happens a lot on results days, a company issues good results and the share price goes down, then a few days later or a week later the share price goes back up again. I think it could be referred to as market manipulation!

The cautionary statement which is just the CEO covering his arse has affected it even though mobiles continue to grow, as have those just selling on results as they believe it will be a while before further news. However the new products are exciting and ready for production and the coming months should bring some interesting Rns' if you read between the lines. Also, on fundamentals, (even if there is no growth at all which is unlikely given their new superior products both ready and in development and the growth in wireless, they're even developing sophisticated silicon wafers) are very cheap. Target 45p s/t

a good deal of selling this a.m.

Sold 50% of my holding. The bears have the upper hand in the market at the moment and my folio rules are not to hold onto a losing stock for too long. Short termers become long termers.

Im sure we will soon get good news on the wafer side of the business so I will add as and when.

If news had been not good then I'd agree but sometimes you have to go against the herd, in fact the really successful do just that, buy more at these silly prices as a 3-5p spike could come without notice. Go with your convictions, think about why you bought and has that changed. Short term share price movement is erratic and not always explainable, long term is different.

I go along with that. What I find remarkable , however, are the number of analysts, tipsters and brokers who like the stock, but yet it is heading the other way.

The chap who was talking about market manipulation a few days back had it about right

If the markets were predictable we would all be making fortunes! Good post robstuff, I agree.

It depends whether you like being a short or long term holder. If you are short term holder it is hard to argue with momentum and charting. I agree with GF that the bears have the upper hand even though I hold and really like the company!

The chart doesn't inspire atm - I'm holding for now and will either cut and run or add @24p

Yes some good points above but we are talking here what time frame are we all investing/trading over. Were all different.

Those that have known me for the last 15 years or so willl know I have changed my style to suit my personal employment/living status. In the good old days I was a contrarian who held over the longer term and I mean up to usually 2 years or more.

Now that I am retired, well semi retired I look for market annomalies in a stock and hit on the counter attack. Im afraid IQE was brilliantly priced at just over 19p when I first traded but since just before the results for whatever reason and I admit their doesnt seem really to be a logical one, the SP has fallen and my strict folio rules are not going to be broken so out goes 50% of the stock. I get rid of losers very quickly.

Having said that I can understand why others who are longer term traders than I are continuing to hold.

I agree SK that 24 is a minor support now we have reasonable results. Could drop to 20 if it does not hold. My thoughts are to wait and watch carefully to see where the bottom will be. I think we will be unlucky (or lucky for topping up) to see 24 again!

Higher, higher higher. Push push push.

re - TA

After DOUBLE TOP in February the share price had a large drop, the same is happening now, though today has bounce

With a bit of luck the recovery starts today.

I can understand the relevance of charts, but not to the extent that it overshadows the performance and future prospects !! And that I would say is exactly what has happened here.

After all that is what really matters. To suggest anything else is totally absurd.

Ananysis published yesterday;

hxxp://t1ps.com/shop/page-advice/action-advertorial.show/id-130023922

"IQE - Interims
1 Days ago (2013-09-23 15:15:09)
Article by James Faulkner

Semiconductor wafer products supplier IQE (IQE) has unveiled a set of interim results that demonstrate the emergence of a rather different animal. Acquisitions drove revenues 84% higher to £63 million during the six months to 30th June, with Kopin Wireless accounting for £15.6 million of revenues. EBITDA jumped 162% to £10.5 million as operational gearing took effect and as costs remained under tight control (SG&A expenses increased by just £2 million to £7.1 million despite the major increase in scale).

However, perhaps the most important metric was the swing into free cashflow generation after investment in capex and product development of more than halved to £4.5 million, reflecting the completion of the firm's two-year capital expansion programme. Cash inflow from operations more than doubled from £2.8 million, representing a 108% conversion of adjusted operating profit into cash. After investment in capex and product development, the group generated a free cash flow of £1.8 million, as opposed to a cash outflow £7.8 million in H1 2012. Net debt at period end was £37.7 million, up from £15.5 million at the end of December due to acquisitions.

Operational highlights...

Growth in the first half was primarily driven by the Wireless division. This was boosted by increased demand in the markets for devices which IQE makes wafers for, including 4G and LTE (Long Term Evolution) smartphones and tablets, and newly launched dual band wifi. The business also saw contributions from the recently acquired RFMD and Kopin businesses, with their integration said to have been successfully completed and work on realising synergies "progressing well".

In other divisions, the Photonics business is said to be making good progress, with several applications starting to be produced after coming out of the R&D stage. These include a number of advanced laser products for consumer, industrial and medical applications and lasers for projection, medical and defence applications.

Advanced solar technology acquired through the investment in solar cell business Solar Junction and the exclusive seven year licence agreement, is now in the final stages of qualification. IQE is on track for this business to achieve end customer qualification and move into volume production during the second half of this year as planned.

Elsewhere, the development of advanced products including gallium nitride materials and compound semiconductors on silicon projects are said to be progressing well, putting the group in a position to benefit from growth in the markets for energy efficient devices, such as LEDs and power semiconductors.

Assessment...

These results reflect the remarkable transformation of IQE over the past 18 months. The firm now has market-leading positions in the growth areas of wireless, advanced solar (CPV), Power Semiconductors, and LED lighting, as well as a range of consumer and industrial applications utilising advanced lasers (VCSELs).

But although the long-term growth story remains in tact, the shares have experienced some weakness on talk of a recent softening in the global smartphone market, which has "injected a greater degree of uncertainty in the short term". This has prompted broker Canaccord to trim its 2013 revenue forecast by 3% and its EBITDA forecast by 2%, albeit also leaving its 2014 forecasts unaltered. Notwithstanding this apparently minor setback, we look forward to a better appreciation of IQE as the firm begins generating free cash flow, thereby removing a key stumbling block for investors.

Valuation...

IQE shares currently trade at 28p, to capitalise the business at £181 million. We continue to believe that it would not be out of the question for IQE to be making EBITDA of near £40 million by 2014/2015, driven by the recent acquisitions and the firm's market leading position in strongly growing industries. On that basis, adjusted earnings should be around 3.4p per share, putting the shares on a forward multiple of 7.6 times. Given that earnings growth from 2012 to 2014 could be c.140%, that valuation does not look demanding, especially given that the company is strongly positioned at the cutting edge of several rapidly growing areas of the technology industry. A multiple of 15 times earnings looks like a reasonable rating given the growth being seen, which on our numbers suggests a 2015 target of 51p. Our stance remains at "Buy"."