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 AIMlisted 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 shortselling outfit accused it of being an ‘egregious accounting manipulator’. That followed a report by ShadowFall, which made similar claims.

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.

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 FTSE100 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 £100 billion barrier. jamie.nimmo @mailonsunday.co.uk