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IQE Price Recovery ... and Collapse

lse:iqe

#1

So, it came back on no news and then a sharp turnaround on Friday … on no news that I am aware of but heavier volumes than the previous few days through which it climbed …

Short positions remain sizeable with IQE the 5th most shorted UK company … with Thomas Cook at number 1 and all the other 3 badly affected by Brexit and/or Woodford. I don’t see why IQE is so heavily shorted, personally.

https://shorttracker.co.uk/company/GB0009619924/

Yet 8.91% isn’t that big a deal and I certainly don’t hear deramping going on in the media - not that I’ve noticed anyway.

There must have been some worried people involved there as the price rose from @47p to @64p in just a few days. Yet they have seen it all before over the last few months.

Personally I bought on the way down @54p, @50.5p and @47.5p and sold on the way up, @63.675p, @55p and @50.5p respectively taking back my cash and retaining shares. (All posted live elsewhere), Even so my average holding is still approx @81p as I struggle to trade my way out of the mess this holding has become.

Should I now go back to the well @55p come Monday if it drops more, pwerhaps repeating the sequence above?

Does anyone have any theories on IQE volatility, short term and longer term?


#2

I expect IQE to drop over the next few days given the bad manufacturing figures out of USA yesterday, adding to the general negative sentiment over global prospects. Current price is @60.62p (-0.29%) after a sharp drop yesterday.

We’re already back around to earnings season in USA. If chip makers reflect the bad data in their earnings reports we can expect IQE to drop on those also.

I’ll be looking to add at some point to trade my position and its average price down based on the fact that IQE share price seems to have resilience given any period of non-direct news. That despite its own figures, other than gearing up for growth, have been far from stellar over the last few years now.

So, further purchases are a gamble on the chart rather than the underlying business profitability. There is some hope that IQE will pick up major orders as the global supply chain re-positions itself, but the truth is to date they have only felt negative impacts from that. The only reason I’m hopeful is that smaller companies tend to be able to change more quickly than some of its larger competitors, but I admit this is little more than wishful thinking at this point.


#3

The price hasn’t collapsed and the 100% take-over of a failing Singapore based part of the business today has been met with a measure of approval by the market.

Can’t quite get a grip on where it is going short-term, no pattern established, although swings between @55p and @65p are very tradeable.

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