Any ideas why price has decreased so dramatically recently?

IMG Imagination Technologies....

JP MORGAN FULL Broker Note......

Imagination Technologies Overweight
IMG.L, IMG LN

Imagination to buy MIPS Tech operating business and
some patents
Price: 465p
Price Target: 750p

European Semiconductors
Sandeep Deshpande AC
(44-20) 7134-5276
sandeep.s.deshpande@jpmorgan.com
Chetan Udeshi, CFA
(44-20) 7742 7034
chetan.x.udeshi@jpmorgan.com

J.P. Morgan Securities plc
YTD 1m 3m 12m
Abs -15.3% -9.7% -8.3% 1.1%
Imagination Technologies Group Plc (IMG.L;IMG LN)
FYE Apr 2011A 2012E 2013E 2014E
Adj. EPS FY (p) 7.33 10.47 13.92 17.89
Revenue FY (£ mn) 98 127 154 185
EBIT FY (£ mn) 24 37 47 61
EBIT margin FY 24.4% 28.8% 30.5% 33.1%
EV/Revenue FY 13.6 10.4 8.6 7.2
EV/EBITDA FY 55.7 36.3 28.3 21.7
Adj P/E FY 63.4 44.4 33.4 26.0
Bloomberg EPS FY (p) 7.70 11.20 13.70 17.80
Source: Company data, Bloomberg, J.P. Morgan estimates.
Company Data
Price (p) 465
Date Of Price 05 Nov 12
Price Target (p) 750
Price Target End Date 30 Apr 13
52-week Range (p) 734 - 392
Mkt Cap (£ mn) 1,224.1
Shares O/S (mn) 263
p
Nov-11 Feb-12 May-12 Aug-12 Nov-12

Price Performance

Imagination Tech is buying the operating business of MIPS, i.e. the licensing
and royalty revenue stream, which generated about US$60m continuing
business in the last fiscal year ended Jun ’12. Purchase price is $60m in cash,
so ~1x previous sales. As part of the purchase, IMG will also acquire 82
patents that are directly relevant to the MIPS architecture. The remaining 480
MIPS patents are being sold to Bridge Crossing LLC for $350m though IMG
will have royalty free use of those patents in perpetuity.
 What is the business? Like IMG and ARM, MIPS is an IP licensing
company licensing processor IP. About $15m of its revenue in the last fiscal
year was licensing revenue and $45m royalty revenue. MIPS royalty units
were 708m in last fiscal ended Jun ’12 and their royalty units have grown at
about 16-17% CAGR between 2007-2012. As part of the acquisition, IMG
gets MIPS design team and 32-bit and 64-bit processor designs.
 How much are they paying and how is it financed? They are paying
$60m for $60m last fiscal revenue stream. They are using cash on their
balance sheet to finance it. Thus buying it at trailing 1x sales. For the recent
quarter ended Sep '12, MIPS reported royalty and licensing revenue of
$13.9m (-19% YoY) with a slight underlying EBIT loss of $0.9m. The
business will come with $100m cash but that will be used to cover tax
payments associated with the disposal of the other patents. Thus,
effectively, it will be cash and debt free. IMG expects the acquisition to be
marginally dilutive to EPS for FY13 and accretive to EPS in 2014. We leave
our forecasts unchanged for now as the deal closes in 1Q13.
 What are synergies? 1) Imagination already has Meta 32-bit processor IP.
With MIPS they get much more battle-tested IP and thus MIPS could
replace Meta in their graphics processors as well. 2) Imagination will likely
reduce G&A at MIPS immediately, as costs of running a listed US company
are removed. There will also likely be sales and marketing cost synergies
and, over the longer term, possibly R&D synergies.
 Why has IMG bought them? MIPS did not gain mobile market traction.
That market is owned by ARM. They have also lost share to ARM in their
core consumer and networking markets. Imagination likely believes that by
being part of the more stable and growing Imagination group, they will be
able to stabilize market share and possibly begin growing MIPS’s licensing
base. MIPS already has 700m+ royalty unit per annum and, if licensees are
confident of future IP development, they will likely re-engage.

IMG IMAGINATION TECHNOLOGY

08 Nov Imagination... IMG Deutsche Bank Hold 479.05 479.00 590.00 590.00 Retains

590p SP Target.

Stan - 06 Nov 2012 07:26 - 101 of 111

Yeah, strange comment that , maybe he's lost money on them in the past.




lol , on the contrary Stan ... started a cracking thread on these over on ADVFN years ago I'll see if I can find it.

For you Stan :-)

IMAGINATION - All The Way Down To 80p ???


Dil 7 Feb'01 - 21:30 edit

Estimates were for EPS of about 3p this year and 4p next. These have now been withdrawn and revised estimates are awaited after the recent profit warning. Assuming that they are downgraded by only 20% then a PE of 25 for next year would equate to a share price of approximatley 80p.

Add to this the fact that the trend was already down and there are no major support levels between the current price of 163.5p and 80p and the case is compelling.

Anything I've overlooked ?

Dil




They actually fell from 163p to around 10p.

In both these stocks but the broker goes hold IMG sell ARM. Anyone have the full note or notes?.

08 Nov Imagination... IMG Deutsche Bank Hold 479.05 479.00 590.00 590.00 Retains
08 Nov ARM Holdings PLC ARM Deutsche Bank Sell 703.00 705.00 400.00 400.00 Retains

Just read half the thread on ADVFN but only the one on the free bb and not the one I started on the pbb.

Made me laff , even Limpy was shorting them. A year after the thread first started a guy called "Dyl" turned up , think Mike and Clem banned "Dil" for a month for having a laff when me and Addo realised that a 1 and an l looked exactly the same in a persons username so we signed up as Bullie , Limpy and everyone else we could think of with l in their username substituting it with a 1 then started a few threads (Dil and Di1 looked exactly the same as did Bullie and Bu1lie , Bul1ie and Bu11ie).

Them were the days :-)

Anyway , sorry for interupting the thread but its just one of those stocks I've never liked.

Should have shorted it again , always was a pile of sh*te.

IMG up over 10% on another good day for some of the Techs.

good recovery from the bottom, frend of mine got it, he's an engineer in computers world and is pushing the ball everytime I see him that semiconductor area is big future.i see they got good fundamentals.

This mornings full note.


13 February 2013
European Daily Focus

Deutsche Bank AG/London Page 7

Imagination Buy

Reuters:IMG.L Exchange: LSE Ticker:IMG
Tgt 520p to 600p. Potential earnings upside from Samsung win
Price (GBP) 520.50
Price target (GBP) 600.00
52-week range (GBP) 717.00 - 383.50
Market cap (GBP)(m) 1,384.3
Shares outstanding (m) 276
Free float (%) 100
FTSE 100 INDEX 6,338.4
FYE 4/30 2012A 2013E 2014E
Revenue
(GBPm)
127 158 190
DB PBT (GBPm) 37 43 57
Stated PBT
(GBPm)
29 29 42
DB EPS (GBP) 10.47 13.13 17.39
DPS (GBP) 0.00 0.00 0.00
P/E (DB EPS) (x) 47.4 39.8 30.0

Samsung Galaxy S4 design win could drive 12% earnings upside - Buy

Over 2012 Imagination's share price underperformed the European Tech sector by
50%, partially due to IMG losing its mobile graphics design win at Samsung's highend
Galaxy smartphone range to competitor ARM (Sell, 903.50p). With IMG
management commenting on re-gaining momentum at Samsung in FY14e (April
end) and Samsung not confirming ARM as the graphics provider at the launch of its
latest high-end smartphone processor, we are now getting more confident in
potential share re-gains for IMG here. In the case of IMG winning the new Galaxy S4
high-end smartphone, we would see 12% upside to our new FY14e EPS forecast. We
reiterate Buy and move our price target to 600p.
Samsung share re-gains likely, potential for Galaxy S4 design win
Following a 2011 licensing agreement and upbeat IMG management comments on
growing royalty revenues from Samsung in FY14e, we see an increasing likelihood of
share re-gains at Samsung in 2013. We believe IMG could have won back the
graphics/GPU socket from ARM in Samsung’s upcoming high performance/ASP
Exynos Octa processor that should ship in the Galaxy S4 (likely released in
March/April). We would view potential share re-gains at Samsung’s high-end
smartphone line-up as a positive catalyst for IMG’s share price and reiterate our Buy
recommendation.
Galaxy S4 design win would drive 12% EPS upside
We update our estimates and raise FY14e EPS by 7% reflecting 1) improving
momentum at Samsung, 2) likely traction of IMG’s customer MediaTek (Buy,
TWD325.00) in lowend tablets, 3) a moderately weaker Apple outlook and 4) a
slightly stronger USD. We currently model ‘only’ a mid-range design win at Samsung
equivalent to 20% unit market share. In the event of a high-end Galaxy S4 design
win, however, our sensitivity analysis shows 12% potential upside to our FY14e EPS.
Raise target price to 600p; risks
We raise our DCF-based target price from 520p to 600p reflecting our estimate
changes and lower LT tax rates. Our DCF assumptions are: 18% FY12-16e and 12%
FY16-20e revenue CAGR, 4% terminal growth, 9% WACC. Key risks include: share
losses at existing customers, worse than-expected unit and ASP trends at Apple
(Buy, $479.93), lower than expected share gains at Samsung, FX.
Johannes Schaller
(+49) 69 910-31731
johannes.schaller@db.com

Brokers are bullish on the stock.

Imagination Technologies Group Broker Views
Date Broker Recommendation Price Old target price New target price Notes

13 Feb Deutsche Bank Buy 524.50 520.00 600.00 Reiterates
05 Feb JP Morgan Cazenove Overweight 524.50 - - Reiterates
30 Jan Morgan Stanley Overweight 524.50 450.00 570.00 Upgrades
14 Jan Barclays Capital Overweight 524.50 650.00 650.00 Retains
14 Jan Goldman Sachs Buy 524.50 600.00 600.00 Downgrades

Huge drop of 80p today

RNS profit warning.

Indeed.. Whoops! http://www.moneyam.com/action/news/showArticle?id=4587279

Still dropping...

Same old IMG , told you they were crap Stan :-)

Exane BNP Paribas Neutral 0.00 314.90 610.00 311.00 Downgrades

SP bouncing off historical support line. At approx 298p. Oct 2010, July 2011.