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

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.

oooooooops wrong thread.

Chessplayer - suggest you take a look at my post 482 and reply from "Panto" post 483 on 4 Jul - However, I still do not undersatnd !!

Analyst update

DOWNGRADE sadly. Not the best way to start the week.............

14 Oct 2013 IQE PLC IQE Liberum Capital Hold 30.25 30.25 - 33.00 Downgrades

Even so, H&L give 3 of 4 brokers giving the stock as a strong buy. I can't follow the sell logic.

Ignore Liberum .... only negative among all the positive .... I for one am sticking with them and looking for 35p at least on the next trading statement, and then finals in March.

Trouble is another broker has also put out a negative note today here............

Edison ‏@Edison_Inv_Res7h
#IQE $IQE Solid H1, but short-term headwinds

http://www.edisoninvestmentresearch.com/search/IQE

Taken a right rogering today, nearly 7% down.

City seem to have it in for this stock.

Bewildering given its potential.

Yes, quite right.

Consider this hypothetical possibility. A stock is going nowhere and 4 brokers have it down as a sell. Then, one broker upgrades to a hold and the stock starts to shoot up.

It makes about as much sense as what is happening here !

Crazy.

IQE plc : IQE plc wins major epi-wafer supply contract from Philips

This might be a turning point at last. And about time too !!

Do the Oky Coky

I am back in, lets hope this is the push it needed