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

"Jessica Amir: Can you elaborate on the work that you’re doing with IQE, the UK semiconductor foundry?

Giles Bourne: We were doing some contract manufacturing for them and now it’s a full-blown collaborator. Now IQE don’t make consumer products, but they do, do large-scale volume manufacture of compound semiconductor materials. And we’re now working on a project with them, which is really applying our technology to non-LED applications.

https://www.finnewsnetwork.com.au/archives/finance_news_network167156.html

From an interview with boss of Australian company BluGlass, Posted elsewhere by 'Fullbright'

article today by Kevin Godbold:


Back in the tech-bubble madness of 2000, shares in IQE (LSE: IQE) briefly touched 750p. Today, after multi-bagging from its lows, the stock changes hands for around 141p, but I reckon it has a decent shot at fulfilling the potential seen by stock market speculators almost 20 years ago because the underlying business is growing fast.

The future of semiconductors
The company manufactures and supplies advanced wafer products and services to the semiconductor industry globally. Through a process and technology known as epitaxy, IQE combines different semiconducting elements to make more advanced semiconductor materials, which are called compound semiconductors.

According to the firm, many people in the industry believe the future of semiconductors will focus on combining the advanced properties of compound semiconductors with silicon in a hybrid technology known as Compound Semiconductors On Silicon – a complex technology in which IQE has been a pioneer for over 10 years.

The directors say the firm has accumulated a “powerful portfolio of intellectual property (IP) including patents and trade secrets.” They are optimistic and say the company’s strong pedigree in high tech manufacturing “uniquely positions the firm to commercialise this IP over the coming years and decades.”

Strong revenues growth
In a trading update on 20 July, the company told us it had seen strong growth in revenues in the first half, which the directors reckon is due to increased demand for Vertical Cavity Surface Emitting Laser (VCSEL) wafers for mass-market consumer applications. When the directors of any company use words such as ‘mass-market’ when describing demand for their products, it’s bound to stir the animal instincts of even the most conservative of investors!

The firm has galvanised itself into action to cope with what it expects will be higher levels of demand going forward. The directors reckon the start of the ramp up for VCSEL wafers marks an inflection point in the commercialisation of the technology. There they go again – inflexion point – another phrase that suggests the potential is huge and that profitable growth is about to make a quantum leap forward.

Multiple contract wins
Indeed, IQE has nailed down “multiple, multi-year contracts” towards the growth of VCSEL, which the directors say reflects the firm’s strong competitive advantages, technology leadership and proven track record in delivering wafers into high volume consumer markets. The development of an expansion plan comes hard on the heels of the firm’s higher investment during the first half of 2017, which itself was designed to prepare for higher levels of growth in the second half. Part of the expansion plan has led to IQE agreeing heads of terms for the lease of new premises in South Wales.

Chief executive Dr Drew Nelson said in July’s update that “the first half of 2017 has been a very exciting time for the IQE Group.” He reckons the firm has “multiple high-growth opportunities ahead,” and it almost went without saying that he expected to exceed market expectations for 2017. Unusually, he went further and thinks it possible “a more significant upgrade to current market expectations could be delivered for 2018.”

I couldn’t resist the improving long-term fundamental story here, so I bought some of the shares last week. However, with a forward price-to-earnings ratio running a little over 37 for 2018, this will be a scary ‘hold’ for me. We’ll find out more with the interim statement due on 5 September.

i sold 40% of my trading position this morning at a very adequate profit
if the markets chirp up tomorrow, and may well buy them back

copied from Grabster post over the road:

Another market assessment page that does include a good range of figures for semiconductor prospects is this one: http://www.nasdaq.com/article/semiconductor-industry-outlook-august-2017-cm833675

It ends with "The Hottest Tech Mega-Trend of All. Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaries," but that should still leave plenty of money for regular investors who make the right trades early."

Halved my holding yesterday to take a nice profit, remaining shares are now a free holding which I will hold indefinitely.

IQE plc : H1 2017 - Interim results

Strong ramp in sales of VCSEL wafers marks the start of a new wave of growth with a pipeline of new mass market technologies.

HIGHLIGHTS
Wafer sales up 17% against H1 2016, delivering a 32% increase in the related operating and adjusted operating profit.

Overall revenues up 12% against H1 2016.

Sales up in all three primary markets with Wireless up 9%, Photonics up 48%, and Infrared up 19% compared with H1 of 2016. Foreign exchange tailwind of c10% following the devaluation of sterling in 2016.
Continued strong growth in Photonics includes the early phase of a significant ramp in VCSEL wafers for a mass market consumer application, and contributed to record monthly Photonics sales in June 2017.
License income of £1.0m, compared with £3.5m in H1 2016 (which included upfront amounts). No upfront license income in H1 2017.

Conversion of adjusted operating profit (£10.6m) into operating cash (£11.2m) of 106% after funding £3.7m investment in working capital, largely in connection with mass market VCSEL ramp (H1 2016: 115% conversion).

Investment in capex and product development of £15.4m (H1 2016: £7.6m) to support further growth, including the expected mass market adoption of VCSELs. This investment was funded primarily through organic cash generation, and supplemented by debt funding.

A further capacity expansion plan initiated to meet higher levels of demand which are expected in H2 2018. 5 new tools on order and lease signed on new premises in South Wales which provides a flexible and cost effective route to add up to 100 new tools, which would double IQE's current tool count.

Breadth and depth of customer engagement across a range of technologies and applications sets the scene for increasing revenue diversity and growth through 2018 and beyond.

Direct engagement with OEMs has expanded to multiple programmes across a range of materials technologies, validating the strength of IQE's IP portfolio as a key differentiator and strong competitive advantage. These programmes are central to several next generation mass market applications.

Net debt up £2.4m since year end to £41.9m (December 2016: £39.5m).

* The Directors believe that the adjusted measures provide a more useful comparison of business trends and performance. Adjusted measures exclude exceptional items, share based payments and non-cash acquisition accounting charges as detailed in note 5.
Dr Drew Nelson, IQE Chief Executive, said:
"The compound semiconductor industry is moving through an inflection point. Many of the key innovations that are taking place in the technology world would not be possible without the advanced properties of compound semiconductor materials. Indeed, compound semiconductors are the fundamental enabler of innovations such as 3D sensing, biometric sensors, electric and autonomous vehicles, high speed wireless and optical communications, and advanced manufacturing.

"IQE has developed an unparalleled breath of materials IP, which position it to prosper from the inflection that is taking place in our industry. Our broad portfolio of IP is a powerful competitive advantage which is enabling us to differentiate ourselves in the marketplace. The strength of our IP has enabled us to broaden our direct engagement with OEMs from single points of engagement a few years ago, to multiple programmes enabling a number of next generation mass market technologies.

"IQE's outlook has never looked better. The broad range of customer engagements across multiple technologies and multiple end markets, provide a clear path to increase revenue diversity and accelerate growth over the coming months and years ahead. The breadth and depth of customer engagement underpins the Board's confidence in approving the capacity expansion plan, which provides a flexible and cost effective route to significantly scaling up in our business over the next few years"

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

I like these bits -

Dr Drew Nelson, IQE Chief Executive, said:

"IQE's outlook has never looked better. The broad range of customer engagements across multiple technologies and multiple end markets, provide a clear path to increase revenue diversity and accelerate growth over the coming months and years ahead. The breadth and depth of customer engagement underpins the Board's confidence in approving the capacity expansion plan, which provides a flexible and cost effective route to significantly scaling up in our business over the next few years"

"The Group has continued to make good strategic, operational and financial progress in 2017, and has a clear vision and roadmap for the continuing growth of the business. The first half progressed well, and ended strongly with the start of a major new product ramp. In light of the benefit of a strong pipeline and increasing revenue diversification the Board remains confident that the Group is on track to deliver full year earnings in line with the recently upgraded expectations."

IQE figures are slightly disappointing, though forecast remains strong
i'm perfectly content to stay put with both my trading and sipp holdings

I placed buy orders this morning at 120p and 125p to top up my holding. Unless there is a negative reaction to the 9:30am analyst presentation, those might not get filled and I might have to pay more - but I shall be adding at some level or other.

A quick post from Skiathos - looking very promising.

I hope you are enjoying some sunshine Skinny?! It is at a premium here!

Cashed in the rest of my shares on the fall then bought back in plus a few extra at a lower price, couldn't resist! Happy to hold without further trading.

IQE
so juzzle, did you get filled at the price(s) you wanted?
if so, well done, though for myself i just sat tight and all has turned out very nicely indeed

now just need a bullish statement from AAPL on 12th :-)

Nope :(
But the holding I do have has done nicely. And I have amended the expiry on my orders (120p, 125p and also 130p) from 5pm today to 5pm tomorrow - in case today's rise is driven partly by shorters buying to close (though the volumes now suggest we've gone way beyond that logic and into the 'everyone has suddenly twigged it's for real' territory)

time constraints are always a problem with s/b

Yes thanks Kim - 91°C on Sunday.

Could prove a pivotal day today!

Back to the Taverna :-)

I hope you meant 91°F Skinny!😃
Yes, good day today, enjoy the Taverna!👍

-91 deg C is -131 deg F......I think skinny is on the Retsina!

he's obviously just chilling out as IQE continues to chug north :-)

😃