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

the bounce is on after yesterday's large volume ( most likely overhang cleared )
being on the order book a bit volatile

Master i have bought a few just to see if your right.......

RNS as we all hoped and expected!

Merger Update
RNS
RNS Number : 6036Z
Office of Fair Trading
08 March 2013


Merger update



The OFT has decided, on the information currently available to it, that a relevant merger situation, under the provisions of the Enterprise Act 2002, has not been created in the following mergers:



Completed acquisition by IQE plc of Kopin Wireless, a division of Kopin Corporation

Which of course should mean the share should be heading north again.
7.7 million shares traded - 70% buys

IQE should now bounce back strongly and move to 40p+ levels leading up to or post
results out on the 20th march,on the wider 12 month view a re-test of 60p again is
a possibility.

They are forecast to announce record earnings on the 20th.

28.875p +0.75p

Nice to see some old posters to the list of buyers

Steady rise since the record volume last week, that is what we need and have at the moment.

A supper finished as the UT was at 29.25p


The rest of the market comment
FTSE moving over 6,500 after finishing 20 points higher at 6,503
but the other indices were not so lucky finishing lower

FTSE 100
6,503.63 +20.05 +0.31%

FTSE 250
14,012.70 -6.05 -0.04%

AIM
748.31 -0.54 -0.07%

Estimates of Pia Tapley of N+1 Singer @ 29p

2013 - EPS 2.11 P/E 14
2014 - EPS 3.25 P/E 9

On that basis, Simon Thompson of the Chronic Investor has a 3-month price target of 45p.

IQE plc : OneChip Photonics announces relations...
HUG
Cardiff, UK, 14 March 2013: IQE plc (AIM: IQE, "IQE" or the "Group"), the leading global supplier of advanced semiconductor wafer products and services to the semiconductor industry, is pleased to announce that the company's epitaxial growth services will be used by Canada based OneChip Photonics to produce InP based Photonic Integrated Circuits (PICs) for the data centre interconnect (DCI) and passive optical network (PON) markets.

OneChip announced in its press release yesterday that its unique design enables the company to decouple epitaxial growth and wafer processing, while outsourcing both functions to independent, pure-play commercial foundries. Under this fabless model, OneChip has been working with IQE for the production of its OneChip-designed 4-inch indium phosphide (InP)-based epitaxial wafers, leveraging the infrastructure and expertise IQE has gained over 25 years, supporting the advanced semiconductor industry with its pioneering outsourcing model.

Valery Tolstikhin, Founder and CTO of OneChip Photonics, said:

"The iron-doped, semi-insulating 4-inch InP substrates, and the metal organic chemical vapour deposition (MOCVD) growth technique, required for OneChip's epi-wafers, are the same as those used by IQE for its high-volume epitaxy products, so we have strong economies of scale in working together. IQE is recognized as a leading independent, pure-play epi-wafer foundry, which not only provides world-class services, but also perfectly fits into our fabless PIC manufacturing model."

Drew Nelson, President & CEO of IQE, said:

"OneChip has developed some exciting new integrated photonics products for the high-volume, but cost-sensitive, optical communications markets. We are delighted to apply our unique high-volume manufacturing expertise in producing InP-based epi-wafers for OneChip's innovative PIC technology. OneChip's use of the fabless manufacturing approach further endorses IQE's outsourcing business model in the field of photonic devices, and we look forward to helping OneChip continue to scale its business as it extends its unique PIC technology to new markets."

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?