STOCK WATCH: Apple supplier IQE may see a bite taken out of its shares
Short-sellers led by the infamous Muddy Waters Research have been all over Burford Capital in recent weeks, cashing in as they took aim at the litigation financing firm.
But attentions could turn to another AIM-listed company this week.
IQE, a Cardiff-based specialist semiconductor firm which supplies iPhone giant Apple, knows all too well the effect of an attack by Muddy Waters, led by Carson Block.
Its shares tumbled last year after a scathing report from the short-selling outfit accused it of being an ‘egregious accounting manipulator’. That followed a report by ShadowFall, which made similar claims.
IQE is a Cardiff-based specialist semiconductor firm which supplies iPhone giant Apple
Both sets of allegations were denied by IQE, whose shares have halved in 18 months. The firm suffered again in June after a profit warning which it blamed on the Huawei row.
The shares drifted even lower last week ahead of its first-half results on Tuesday, which could hit the shares further.
Deutsche Bank expects revenues of £66million, but predicts pre-tax profits will turn into losses of £1.5million. More pain will delight short-sellers once again.
After a tough first year owning car and plane parts maker GKN, investors will be hoping for signs that the Melrose Four’s fabled turnaround skills are having an effect on their largest acquisition to date. They have appeared to struggle to find buyers for parts of the business.
First-half results on Thursday will show whether their efforts to fix the struggling Driveline car division are working.
Scribblers at RBC are confident they can reassure investors about the performance, with help from a stronger aerospace division.
A larger-than-expected debt pile could accelerate any potential division sales.
The City was swirling with rumours around Hurricane Energy last week as the AIM-listed North Sea oil explorer was caught up in a gust of gossip around a possible oil discovery.
The word doing the rounds was that Hurricane – a popular share among private investors that has amassed an army of followers – had struck oil at its Lincoln well.
Gossip-mongers even said the well, which like some of Hurricane’s other fields is named after a town, was flaring.
Even if it was, which I understand it wasn’t, that doesn’t necessarily mean it’s hit the jackpot – so investors should try not to get too excited just yet.
Results from AstraZeneca’s late-stage trial into heart failure treatments will be unveiled this evening at a key pharmaceuticals conference in Paris.
Positive results of trials into its Brilinta and Farxiga treatments could boost its share price further. The company has been one of the best performers on the FTSE 100 this year, having soared 24 per cent to a record high.
It has quietly overtaken GlaxoSmithKline as the UK’s biggest pharmaceuticals firm.
Glaxo’s £85billion market value is dwarfed by Astra’s £96billion valuation. Upbeat results from the trials just might push it over the £100billion barrier.