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

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"."

chessplayer, charts show whats going on in the market for a company at anyone time.(in different time frames) If one uses the indicators along with them then their is a good chance say 70% to 80% that annomalies can be picked up on and THEN Fundys researched.

No one is suggesting that they overshadow the performance and future prospects of a company.

IQE’s acquisition of Kopin Wireless wins Business Insider Deal of the Year

Cardiff, UK, 23 September 2013: IQE plc (AIM: IQE, "IQE" or the "Group"), the leading global supplier of advanced semiconductor wafer products and wafer services to the semiconductor industry, has received the Deal of the Year prize at the Business Insider Wales Business Awards.

The Award was presented to IQE at a ceremony in Cardiff on 19 September.

Dr Drew Nelson, IQE Chief Executive said:

“The acquisition of US based Kopin’s wireless division earlier this year was one of three transformational deals undertaken since the beginning of 2012. This award acknowledges the hard work by all involved in completing these major international transactions as well as the subsequent successful integration of the businesses into the IQE Group.”

Further details of the Business Insider Awards are available at:

hxxp://www.insidermedia.com/insider/wales/98784-holmes-wins-top-dealmaker-prize?utm_source=breaking_news_newsletter&utm_medium=top_story_article&utm_campaign=breaking"

Nice finish at the close of play.

IQE investor relations interview

IC review IQE PROFIT TAKING OFFERS BUYING OPPORTUNITY: I noted with interest last weeks results from IQE. (26.5p), the global supplier of advanced wafer products to the semiconductor industry, and I am sure many of you did too as I have covered this company extensively over the past 11months. The key take for me was that half-year revenues and cash profits were ahead of analysts estimates, even after taking into consideration upgrades post the pre-close trading update. The performance of Kopin is clearly going well. The company was acquired in a $75m deal earlier this year and has significantly extended IQE's market share and leadership in wireless industry supply.; added Skywork Solutions, which has a long standing supply agreement with Kopin Wireless, to the customer base; and bought in a Taiwanese manufacturing facility to boost IQE's global manufacturing footprint. It has also provided the business with a strong position to access the growing Asian semiconductor market. Coupled with the acquisition of RFMD, the wireless segment accounted for 85% of IQE's sales of £63m in the period, of which Kopin contributed £15m and RFMD a further £16m. Importantly the cost savings from the two wireless acquisitions are coming through and chief executive Dr Drew Nelson confirms the company is on track to achieve annual recurring savings of at least £7m from next year. It also helps to explain why IQE's revenues jumped 84% in the half year and adjusted pre-tax profits rose 10-fold to £5.1m. And with the benefit of £130m of accumulated tax losses, the company paid tax on those profits, which is why underlying EPS soared from 0.13p to 0.82p year on year. Moreover with cash generation strong (cash inflow from operations more than doubled to £6.3m) IQE created free cashflow of £1.8m after spending £4.5m on capital expenditure. Net debt at the half year end was £37.7m almost £1m lower than Cannacord Genuity predicted. The one fly in the ointment is the recent weakness in the global smartphone market.. This is mainly due to weaker demand in advance of new product launches, butnonetheless it introduces a degree of uncertainty. Perhaps that's why IQE's share price fell after the results, although it had risen by almost 60% after I highlighted the anomolous valuation in the summer, so a degree of profit taking was always to be expected. (awaiting a catalyst for re-rating 11.7.2013). That said the shares are still attractively priced on 14 times Cannacord's EPS estimate of 1.9p, up from 1.5p in 2012, and on only 8.5 times2014 earnings estimates of 3.2p. Analyst Alexandra Jarvis at broker Peel Hunt is more agressive, predicting EPS 2.3p this year, rising to 3.5p in 2014. Those estimates seem reasonable to me and take account of the planned ramp up in IQE's photonic operation, which is currently at break evenProducts here are used in a wide variety of applications, including optical-fibre communications, optical storage (DVDs and CDs), laser printing, solar cells and solid state lighting. However , the operation is set to benefit from a ramp up of new optoelectric products and, more importantly, an adoption of CPV Solar. Dr Nelson pointed out that "advances in cell and system efficiency are accelerating the adoption of CPV, which is widely expected to be a $200m-$500m market for compound semiconductor materials in the next three to five years.". He adds "having successfully hit all major technical and operational milestones, and recently posted new world record efficiencies from our production platform, we are now qualified for high volume manufacturing to commence over the coming months". That's one reason why Peel Hunt expects IQE's revenues to to rise from around £139m this year to £158m in 2014. Given the operating leverage of the business, these revenuess will have an accelerated impact on operating margins, which are expected to rise by around one percentage point this year to around 11.6%, before hitting over 15% in 2014. Interestingly, IQE's share price has fallen on profit taking after last week's results to test the 200 day moving average (around 26.5p), and at a reading of 40 the 14 day relative strength index is in oversold territory. For a company set to deliver 133 percent earnings growth over a two year period, I believe the shares are seriously undervalued on a bid-offer spread of 26-26.5p. I have a conservative target prices of 35p, which much lower than Cannacord's price target of 65p. Both N+1 Singer and Peel Hunt have target prices of around 45p. END OF: Article by Simon Thompson

A P/E of just 8 or so for 2014......................Pathetic.

Way undervalued.

To my way of thinking it can only come from a lack of proper understanding and a failure to appreciate what the company is all about.

Another typically ludicrous situation today as regards this stock. i.e. - practically all the trades are buys, yet the stock is down a touch !

still, a bad day for the market.