There was a discussion on Stockopedia in early Oct about IQE: “another good growth stock?” (http://is.gd/mZuEds). Both IQE and ARM are in the semiconductor business. IQE is up 116% over 10 years, whilst ARM is up a monster 827%. IQE is obviously no slouch compared to the Footsie, but if you had bought IQE in late 2006, you would only be about even.
I owned some IQE in the past, and lost money on it. Nowadays I doubt it is the kind of company I would touch.
My reasoning is that, although revenues rose from £20.9m in 2005 to £112m in 2014, the share count has doubled. It spends far more on R&D than it receives as operating cashflows, and hence needs to keep asking the market for more money. As they say on Dragon’s Den: “for that reason, I’m out”. (Cyriak spoof: https://youtu.be/kVzMewUqTII).
It has never paid a dividend. Its mean ROCE according to Stockopedia is 6.4%. That is pretty poor, actually. It just can’t seem to get a sustainable lift-off.
It has a Stockopedia StockRank of 93, but I am still not keen.
The shares could do anything.
Conclusion: lots of sizzle, but no steak.