There seems to be a lot of excitement regarding IQE and it bothers me because I sold too soon and only made 22%, if I had held I would have added another 100%. This is also making my averages for selling look not so good and I have had a wonderful run this year with 75% of all sales now in negative territory. But I digress.

Because I am now an injured bear I decided to look and see what the fuss was all about and this is what I found.

In 2009 this very same share took off from a base of 3.5p, there was a big kick in volume about half way through this rise which peaked after two years at 59p, someone bought at 59p! It then declined over the next eight months back to 19p,. It then doubled in value only to lose it all again.

The most recent rise commenced at 14p in July 2016, just one year ago and here we are at 109p but why?

A quick look at the accounts show that last year was a not as good as the previous year when at least in 2009 the figures more than doubled and continued to do so for a couple of years. But the improving results didn’t stop the decline in share price.

The other problem is the power of the group, if the king tells you he has bought and he is a great king, his followers might just follow, hopefully the king will tell his followers he is going to sell--prior to doing so.

The more I read the blog re this share, the more I get that old feeling of déjà vu, for Wales read Northern Ireland and motor cars, as for poor Minervini he gets blamed for everything? Minervini says “don’t go against the marker sentiment” I did hear correctly, the BOE telling us all that they are fearful of rising domestic debt along with other issues. No problem, we just sell, I don’t think the buyers will be out when the fan gets covered, unless of course someone buys at 59p or whatever the top is going to be.

Finish reading with a 14 day trial

or Unlock with your email

Already have an account?
Login here