Apple supplier IQE hits back at second short seller claims
IQE, a small Welsh tech company which supplies parts for Apple iPhones, has hit back against claims made by a short seller for a second time.
The firm was prompted to issue an update to the market after its share price fell 11 per cent on Thursday morning. In it, IQE dismissed claims made by Muddy Waters Capital about joint ventures which echoed concerns raised last week by ShadowFall Capital.
"Information in the Muddy Waters report is either factually inaccurate or has previously been disclosed in IQE's annual reports and financial statements," IQE said.
"IQE continues to assure shareholders that the Company holds itself to the highest standards of corporate governance, transparency and integrity."
Both Muddy Waters and ShadowFall hold short positions in IQE, which has this year become one of the most shorted stocks, with more than 10 per cent of its shares now held as a short interest.
Last year it was one of the best performing Aim stocks. It's understood to supply components for the iPhone X's 3D camera sensors.
Barclays analysts said the ShadowFall research shows a "misunderstanding of the compound semiconductor industry" while Peel Hunt retained its "buy" recommendation on Wednesday.
"There is no question that IQE has an established position in a major growth market which looks well set for its outsourcing model adoption," it said.