Iqe16 May 2014 12:28
From todays Investors Chronicle:
MATERIAL PROFIT. It is not inconceivable that a London listed materials developer could change the world as we know it.
IQE:
Remember we said silicon is dead, or at least dying a slow death? Well, IQE has a possible alternative - gallium nitride (GaN). The welsh company makes wafer products for wireless products for wireless devices such as smartphones made by Apple and Samsung, and claims that "GaN is a much better material than silicon in virtually all aspects except cost". Iqe uses GaN for high speed data applications, and it is certainly better than silicon at handling high voltages, high temperature, and high power. Large diameter wafers (silicon discs), which layer GaN over silicon carbide (Sic), bring costs down too.
"Gallium Nitride is fast becoming the material of choice for amplifiers, switches and other devices in base stations", say Iqe. and the potential could be huge. According to Lux Research, the power electronics market will be worth $15billion in 2020, with SIC and GaN taking a 22% share. And GaN could "revolutionise residential and commercial lighting". In the Uk alone, lighting uses a fifth of all electricity generated, but roll out LED alternatives and the country's electricity bill could shrink by up to 15%.
True, Iqe's expansion has not come cheap and net debt is uncomfortably high. Still, a compound annual growth rate of 17% out to 2016, according to N+1 Singer, renders the shares, on just nine times forward earnings, too cheap.BUY. .............END OF
Certainly sounds positive does'nt it. Something's going on here and judging by the large buys yesterday other believe it too. No reaction so far from the share price. A nice thought that Iqe could be involved in a serious materials development and real game changer.