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

Baffled like everyone else .... there is talk of a further acquisition and possible rights issue, but would a company "expect to reduce debt further to below £35m" after paying off a large chunk during 2013" ...if this was in the pipeline ???

Reading company news again ... it states Capex programme has ended which again suggests no more acquisitions

Going to stay positive and sit tight and wait for one of the industry big boys to come in with a 50p a share offer for the company !!

IC also just posted a positive update

It’s not often that a company reports a bumper trading update and sees its shares sold off 15 per cent in the weeks after the announcement. But this is exactly how the market reacted to a pre-close trading statement from IQE (IQE: 23p), the leading global supplier of advanced wafer products and wafer services to the semiconductor industry. It seems bizarre to say the least.

The company said that revenue for 2013 is likely to be at least £126m, representing an all-time high and an increase of 43 per cent compared with 2012. Strong sales growth and improved operational efficiencies are expected to deliver cash profits of at least £24.5m, up from £16.4m in 2012, yet another record. In turn, this bumper performance will lift adjusted EPS by a third year-on-year to 2p.

Moreover, the company’s high conversion of operating profit into cash means that net borrowings are now below £35m, down from £37.7m in June, and that was after making £8m of payments in deferred consideration in the second half of 2013 (and £14m over the course of the year) relating to previous acquisitions. The amount of deferred consideration payable is predicted to fall from now on, so expect net borrowings to reduce sharply this year. ..... etc article longer, but

We have hit 22 for the third time now .The stock is due a bounce.

http://www.stockopedia.com/content/iqe-plc-now-a-strong-target-for-intel-81260/


IQE Plc - Now a strong target for Intel ?

Sunday, Feb 09 2014

IQE (LON:IQE) ........is a leading global supplier of advanced semiconductor wafer products and services to the semiconductor industry. Its products are found in many leading edge applications,including mobile handsets, wireless infrastructure,optical communications and storage,thermal imaging, medical products,high efficiency concentrator photovoltaic (CPV) solar cells.

The company has been prudently managed and in recent years has made some careful but clever acquisitions that has strengthened both the balance sheet and also its market position.The company,s most recent financial statements show that some of those decisions made a few years back are now starting to pay off even in a difficult market,and this has lead to a steady rise in revenues and earnings per share.

In 2011 it was rumoured and later confirmed that Intel Corporation were considering a buyout of IQE with offers around £500m ,at the time it would have been a bold move by Intel given IQE,s earnings and debt position in 2011.However since that time the fortunes of both companies have actually reversed with Intel struggling to fend off its competitors and maintain its earning power,and IQE on the other hand growing its key and core business at a healthy level.

In a recent interview,new Intel CEO Brian Krzanich indicated that the corporation are now focused on building its exposure in the mobile & tablet chips market,and potentially in to the new area of wearable devices.It would be astonishing if Intel were not looking at the likes of IQE again for a potential buyout,because as has been proved in the last few years,the reliance by Intel on the PC Chips market and the unwillingness of the corporations former management to follow the trend of the mobile market has cost them dearly.It could be argued that had Intel actually taken over IQE back in 2011 the corporations performance would now be looking somewhat more positive.

So in conclusion a takeover of IQE by Intel now looks compelling and makes sound business sense.

a bit like BLNX, this looks a high risk stock, but quite a good one for all that .... indeed, i've just chucked some into my SIPP

cynic ditto!

If Intel again confirm an interest in IQE you will see this motor again like before
where it went up to 60p in no time at all.Strong buy and hold this imvho.

Remember this ?

http://www.eetimes.com/document.asp?doc_id=1258351

I would have thought that this bid speculation eould have produced an upward price move.

chess look at the trades MM's playing games.

That's another odd thing about IQE. With most other stocks , bid speculation , especially with a prospective price 4 times !!! the current one would cause most shares to rocket. So, why not here ?

perhaps hidden stake building.

I have doubled my holding here as I have also been thinking recently that this has been oversold (shorted) and the p/e for 2015 on this price is less than 4. Crazy.
It would be a shame to see IQE get swallowed up by a US co after all their efforts. The acquisitions are bedding in well, the mkts they have chosen are booming, a takeover at 500m would Value mean a sp of around 70p, I think it would now go for 250-300m about twice it's current sp unless on results the sp starts taking off again. Will they leav it that late to make a bid?

Perhaps there are some major shorters playing with IQE?

Why would they do that when the upward prospects have been so well flagged ? Still, that is probably what is going on methinks .

Disclosed positions in IQE PLC


Tip: Click a number in the % short column to see history for that position.

Notice: We no longer track disclosures after they drop below 0.5%. It is possible that the manager still holds a short position even if we are showing it as zero.

Fund manager

% short

Change

Date changed/created

BlackRock Advisors (UK) Limited

0.57%

↓ -0.13%

2013-10-16

BlackRock Institutional Trust Company, N.A

1.20%

↑ 0.10%

2014-02-05

BlackRock Investment Management (UK) Limited

2.29%

↑ 0.12%

2014-02-07

Ennismore Fund Management Limited

1.04%

↑ 0.07%

2013-10-30

Total

5.10%

I wonder what their tgt to close these positions are, it must be getting close with results that could surprise or a takeover

On a PE just above 10

the last trading update, clearly stated a better year ahead but share price is not reflecting those figures:-

"As a result, revenue for full year 2013 is expected to be at least £126.0m (2012: £88.0m), representing a new record and an increase of over 43% compared with the prior year. Strong sales growth and improved operational efficiencies are expected to deliver a record EBITDA of at least £24.5m (2012: £16.4m). "

Adjusted fully diluted EPS is therefore expected to be approximately 2p (2012: 1.51p), an increase of over 32% compared with 2012.

it is indeed very odd indeed
there is an old adage that the market is always right, but one does wonder with this one

their results are due on 26th march, so just perhaps we'll all have a very pleasant surprise

The expression " snake bitten" comes to mind. Quite a poisonous one too !