ARM price seems to be going through a three month flattish period after a 1 year or so steady rise. Any views on what might happen next?

Liberum broker note (part) following on from the possible tie-up between ARM & Microsoft:
"Overall positive for ARM: While it is difficult to make a tangible assessment of the benefit of this deal to ARM apart from the obvious upside to medium term licensing revenue and the increase in the licensing backlog, there is no doubt that it is a positive deal for the company. It raises the chances of ARM having a higher share in the Microsoft Windows-based product space, be this in tablets, netbooks, laptops, servers or consumer electronics devices. However, we remain cautious on the short to medium term direction of the share price. We see the stock as being extremely over-valued, trading at 41x our forecasted 2010 EPS.
We also predict that we are heading into a semiconductor downcycle where ARMs royalties and valuations are likely to be negatively affected. We maintain our sell recommendation and 190p price target."

Microsoft Licenses ARM Architecture

RNS Number : 8569P
Arm Holdings PLC
23 July 2010


Microsoft Licenses ARM Architecture
ARM and Microsoft continue relationship
with closer access to ARM IP

CAMBRIDGE, UK - July 23, 2010 - ARM and Microsoft Corp. today announced that
they have signed a new licensing agreement for the ARM architecture. The
agreement extends the collaborative relationship between the two companies.
Since 1997 Microsoft and ARM have worked together on software and devices across
the embedded, consumer and mobile spaces, enabling many companies to deliver
user experiences on a broad portfolio of ARM-based products.

"Microsoft is an important member of the ARM ecosystem, and has been for many
years," said Mike Muller, CTO ARM. "With this architecture license, Microsoft
will be at the forefront of applying and working with ARM technology in concert
with a broad range of businesses addressing multiple application areas."

"ARM is an important partner for Microsoft and we deliver multiple operating
systems on the company's architecture, most notably Windows Embedded and Windows
Phone," said KD Hallman, general manager, Microsoft. "With closer access to the
ARM technology we will be able to enhance our research and development
activities for ARM-based products."

BUT, with iphone & Android systems already developed & running, can Microsoft get a profitable foothold in the mobile market? Many have their doubts.

Q2 results.

CAMBRIDGE, UK, 27 July 2010-ARM Holdings plc announces its unaudited financial results for the second quarter and half year ended 30 June 2010, demonstrating continuing progress in executing its strategy with multiple design wins taking ARM further into new markets.

Earnings and taxation

Profit before tax was 29.6 million in Q2 2010 compared to 6.4 million in Q2 2009. After adjusting for acquisition-related, share-based payment costs, Linaro-related charges and restructuring charges, normalised profit before tax was 43.5 million in Q2 2010 compared to 16.3 million in Q2 2009. The Group's effective normalised tax rate was 27.4% (IFRS 26.1%) in Q2 2010 compared to 24.7% (IFRS nil) in Q2 2009.

In Q2 2010, fully diluted earnings per share were 1.62 pence (7.29 cents per ADS****) compared to earnings per share of 0.50 pence (2.46 cents per ADS****) in Q2 2009. Normalised fully diluted earnings per share in Q2 2010 were 2.34 pence per share (10.51 cents per ADS****) compared to 0.95 pence (4.69 cents per ADS****) in Q2 2009.

Balance sheet
Intangible assets at 30 June 2010 were 574.1 million, comprising goodwill of 556.0 million and other intangible assets of 18.1 million, compared to 549.0 million and 21.8 million respectively at 31 March 2010.

Total accounts receivable were 91.8 million at 30 June 2010, comprising 80.0 million of trade receivables and 11.8 million of amounts recoverable on contracts, compared to 57.9 million at 31 March 2010, comprising 45.0 million of trade receivables and 12.9 million of amounts recoverable on contracts. Days sales outstanding (DSOs) were 34 at 30 June 2010 compared to 26 at 31 March 2010.

Cash flow and interim dividend
Net cash was 202.3 million at 30 June 2010 compared to 196.0 million at 31 March 2010. Normalised free cash flow in Q2 2010 was 30.4 million.

In respect of the year to 31 December 2010, the directors are declaring an interim dividend of 1.16 pence per share, an increase of 20% over the 2009 interim dividend of 0.97 pence per share. This interim dividend will be paid, out of the UK GAAP distributable reserves of ARM Holdings plc, on 4 October 2010 to shareholders on the register on 3 September 2010.

Looking good.

Not a bad day - especially as its XD today.

That's a sweet lookin' chart. Good company with a unique business model. Wonder how long it can last?

Current short interest: "ARM short base (data explorers) is 12 days to cover, 6.1% of shares outstanding."

Conclusion of Panmure Gordon broker note:
"Based on our revised DCF, we reduce our price target to 265p from 275p. We continue to believe ARM is well positioned for multiple structural growth drivers and has strong prospects. However the stock looks over-extended and vulnerable to downgrades to consensus estimates which have got increasingly aggressive. We believe the potential for a bid for ARM are extremely low given both strategic and valuation considerations. We re-iterate our Sell recommendation."

New highs again .....

Yes, because ARM have secured a new contract with Samsung to provide a couple of chips for their phones to the detriment of Imagination Tech (IMG) who have lost the contract.

That will be four quid.

This lot hit the sp heavily:
ARM Holdings plc ("the Company") announces the following dealings by Directors and PDMRs:

On 10 September 2010 Tudor Brown, who is President of the Company, sold 150,000 shares at a price of 402.5 pence per share. His resultant shareholding is 916,834 shares.

On 10 September 2010 Mike Muller, who is Chief Technology Officer of the Company, sold 300,000 shares at a price of 402.37 pence per share. His resultant shareholding is 1,461,857shares.

On 13 September 2010 Mike Inglis, who is General Manager of the Processor Division of the Company, sold 100,000 held his Self-Invested Pension Plan at a price of 402 pence per share. His resultant holding is 207,246 shares.

On 13 September 2010 Young Sohn, who is a non executive director of the Company, sold 25,000 ADRs (equivalent to 75,000 shares) at a price of US$18.7168 per share. His resultant holding is 84,000 shares.

On 10 September 2010 Patricia Alsop, who is a PDMR sold 80,000 shares at a price of 405.4 pence per share. Her resultant shareholding is 55,455 shares.

On 9 September 2010 Ian Drew, who is a PDMR, exercised an option over 20,000 shares at a price of 118.50 pence per share and sold the shares at a price of 405.39 pence per share. His resultant shareholding is 76,648 shares."

ARM has dismissed rumors of an acquisition by Apple as completely nonsensical, and says that while Intel may make more money from their chips, ARMs customers are well ahead in sheer numbers. Speaking to the NYTimes, ARM CEO Warren East said that our customers sell about 4 billion chips a year, and that he laughed about the takeover rumors with the folks at Apple. When it comes to the ARM/Intel battle, though, hes more serious: We dont look like Intel, were never going to be a $100 billion outfit.
In fact, East dismisses the idea of a David and Goliath fight between his company and Intel, blaming commentators and press for attempting to hype the division between the two firms. We evolved under low-power pressures, says ARM VP of research Krisztian Flautner, it set us on a different evolutionary path.

Q3 results.

With iPhone4, iPad and iPod Touch gaining popularity, ARM is a strong buy at 371p.

Now 362p with a broker downgrade!

Broker are also trying to get in at a lower sp. Now 366p.

Arm looks to cash in on tablet market

Arm, whose chip designs are used in Apples iPad and iPhone, is expecting to benefit from growing demand for tablet computers.

Speaking as the group revealed third-quarter results, Warren East, chief executive, said Arm was excited that this years launch of the iPad had opened up a new market for tablet computers.

The group which licenses its low-powered chip designs to semiconductor manufacturers and then collects royalty payments said that new tablets from Dell, Research in Motion and Samsung Electronics would all contain its semiconductor designs.

Last week Gartner, the research group, said it expected tablet sales to more than double in 2011 from an expected 19.5m units this year, and surpass 208m units in 2014 as rival technology groups launch tablet products.

With economy improving in UK, computers and mobiles sales will rocket.

Business as usual ?