Recently through my research i came across IQE a technology stock which seems to have a great potential for growth:

IQE plc is a United Kingdom-based holding company. The Company is engaged in the research, development and provision of engineering consultancy services to the compound semiconductor industry. It is engaged in the sale of advanced semiconductor materials. Its operating segments are wireless, photonics and electronics. Its finished products are compound semiconductor wafers. It operates in the United States, Asia and Europe. Its products include heterojunction bipolar transistor (HBT), edge emitting lasers, vertical-cavity surface-emitting laser (VCSELs), distributed feedback laser (DFB) lasers, detectors, multi junction concentrating photovoltaics (CPV), metal-semiconductor field effect transistors (MESFETs) and quantum well infrared photodetector (QWIPs), among others.

Forecasted:

PE Ratio of 9
PEG Ratio 0.45
EPS Growth of 25.7%

5.3 million in cash, 31.1 million in net debt, last year they announced net debt of 31.3 million and a net profit of just over 1.63 million so i would not of touched this stock with a barge pole.

With previous net debt taking 19 years to pay back i stick to stocks that can cover net debt in just 3 years, forecast net profit of 12 million is this a good stock to buy?

Seems to me through research its products are in high demand from some large companies and the stock is cheap, in a recent trading update they announced;

POSITIVE MOMENTUM CONTINUES AT IQE

In the wireless market, key customers have continued to enjoy strong revenue growth. The strong outlook is being driven by new flagship smartphone platforms, growth in sales to China, and upgrades to 4G/LTE. This has primarily benefitted their filter businesses, but also provides a stable platform for compound semi-conductor components including Power Amplifiers (PAs).

Strong sequential wireless revenue growth is expected in in the second half of the year, primarily reflecting normal seasonal trends. Also, although of smaller consequence, some temporary production disruption suffered by one customer during Q2 has skewed some sales into Q3. This customer specific issue did not relate to IQE's products, and has since been resolved.

The photonics business has continued to perform well. It is enjoying strong and sustainable revenue growth. This is being driven by a wide array of end market drivers including…

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