By Malcolm Stacey | Saturday 11 March 2017
Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Hello Share Packers. All of the shares I’ve brought to your attention have been making good ground. But then again nearly all shares have been flying on the coat-tails of a bullish Footsie.
But it is a good idea to keep you up to speed with the best of my crop. And so I remind you that IQE (IQE), the Welsh maker of vital bits for mobile phone, computers and the like, is still well worth looking at.
It has equalled its five-year best as I write. And after losing 10 per cent at the end of last month to profit-takers, it is now back on course.
But the reason I would not cream off any of my big profits at this stage is the possibility of a take-over. We all know that the similar - though much bigger firm - Arm Holdings was snapped up by the Japanese who were attracted by the low pound to make their generous bid.
And it’s quite possible that IQE could go the same way.
Meanwhile the full year results are due on March 21st. And we all know what often happens to the share price of a company which produced good results last time and is likely to announce even better figures this year.
Of course, the share price will probably come down on reporting day, as so often happens even if the figures are stunning. So there’s a case for selling just before the 21st.
But I will not be doing so, because those results might just trigger a bid from one of the techno giants that might have IQE in the frame.
Another reason I like this are is the PE ratio of 16. That is small for a techno firm with bits and pieces that manufacturers seem to want. Arm’s PE was horrendous, but it still made its shareholders pots of money.
And now it’s time to visit the Punter’s Return. God bless.
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