Any ideas why price has decreased so dramatically recently?

Imagination to license chips to telecoms

- http://www.ft.com/cms/s/2/ef8a3cc6-0708-11e0-94f1-00144feabdc0.html#axzz1849GKJnN



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Imagination to license chips to telecoms
By Mary Watkins, Technology Correspondent

Published: December 14 2010 04:34 | Last updated: December 14 2010 04:34

Imagination Technologies will start licensing its chip designs directly to telecoms groups for the first time as it seeks to take advantage of the rapid shift towards video and voice telephony services on the internet.

Hossein Yassaie, chief executive, said that phone carriers and handset operators were increasingly looking to offer their own homegrown versions of video and voice over internet protocol (VoIP) services as an alternative to market leader Skype.

EDITORS CHOICE
ASML orders on course to top 2bn - Dec-10.Display panel cartel fined 649m - Dec-08.US tech leaders raise the stakes on pay - Nov-25.Inside Technology: Solar dimmed - Nov-10.Chips demand lifts Wolfson sales by 33% - Nov-05.Lex: Semiconductor makers - Oct-21..The whole world is going to VoIP and there will be a variety of ways that people get media over the internet. Skype will be one but there will be others, he said.

The vast majority of Imaginations chip designs are licensed to semiconductor companies such as Intel and Samsung. By licensing its designs directly to telecoms groups rather than through a chip manufacturer, Imagination aims to widen its customer base.

Phone operators were initially resistant to allowing customers to make calls using internet telephony services offered by companies such as Skype because they thought the free or lower-cost calls would cannibalise revenues. However, as voice and web services have increasingly converged, operators are now pursuing their own VoIP strategies.

A number of telecoms groups have signed deals to allow customers to use video and VoIP services offered by Skype, which last year became the leading carrier of international calls and is expected to list on Nasdaq next year.

However, telecoms and technology groups are looking to compete with Skype. Google recently unveiled a service that will allow Gmail users to call landlines and mobiles from their inbox.

Imagination, whose graphics chip designs are used in Apples iPad, last month acquired US-based HelloSoft for up to $47m (30m) to assist its push into video and VoIP as well as expand its WiFi offering.

HelloSofts technology will help Imagination offer chip designs that will improve the speed with which video, audio, voice and graphics can be delivered to internet-connected devices.

Mr Yassaie said that over the next few years high performance connectivity would become increasingly important to people using tablets, smartphones, internet-connected televisions and radios, and PCs. But he said one of the key challenges would be migrating fragmented networks from circuit switching to iternet protocol-based devices.

Imagination, which has a market capitalisation of just under 1bn, is considered a leader in graphics chips and also created the Pure radio brand. The company, shares in which have risen about 50 per cent this year, counts Apple and Intel among its shareholders.

The Hertfordshire-based group publishes its half-year results on Tuesday. It is expected to exceed its target of shipping 200m chips for the full year.
.Copyright The Financial Times Limited 2010. You may share using our article tools. Please don't cut articles from FT.com and redistribute by email or post to the web.

DJ Imagination Technologies 1H Rev GBP44.1M
LONDON (Dow Jones)--U.K. chip designer Imagination Technologies Group PLC (IMG.LN) said Tuesday it is confident of beating its previous full-year shipping target, as it posted almost doubled pretax profit for the first half.

The company also announced the $27 million acquisition of Caustic Graphics Inc., a 3D graphics technology firm.

Imagination, which licenses its chips to companies including shareholders Intel Corp. (INTC) and Apple Inc. (AAPL), said it is on course to exceed its long-term target for its customers to ship 200 million units containing its technology in fiscal 2011.

Profit before tax for the half year to Oct. 31 rose to GBP7.7 million from GBP3.9 million a year earlier. Revenue climbed to GBP44.1 million from GBP38.2 million as strong growth in chip royalties and licensing revenue more than offset a decline in the firm's Pure digital radio business.

Imagination said the acquisition of Caustic--which comes soon after its $47 million deal to buy video and voice-over-Internet company HelloSoft in Novemember--will help keep the company at the forefront of graphics technology.

-By Tommy Stubbington, Dow Jones Newswires; 44-20-7842-9268; tommy.stubbington@dowjones.com

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(END) Dow Jones Newswires

December 14, 2010 02:26 ET (07:26 GMT)

Copyright (c) 2010 Dow Jones & Company, Inc.

15-Dec-10. Imagination Technologies Group. IMG. Evolution Securities. Neutral 379.90p 515.00p - Upgrade

Todays Telegraph we get a mention....

http://www.telegraph.co.uk/finance/newsbysector/epic/arm/8242454/CES-Leather-trousers-geeks-and-British-brains.html

From the Telegraph report.......

The current big thing is tablet computers. If you smash open one of the Apple iPads that millions of people received this Christmas youll find a handful of ARM-designed chips, as well as some from Imagination Technologies, a fellow British technology group that powers Apples graphics

Investtech bullish on IMG

Heres the summary this morning.......

Positive Candidate -Medium term, Jan 5, 2011 Analysis Explanation

IMAGINATION TECHNOLOGIES GROUP shows a strong development within a rising trend channel. A further positive development is indicated, and there is support against the floor of the trend channel. Has also broken a resistance level in the short term and given a positive signal for the short-term trading range. The stock has support at pence 277 and resistance at pence 440. Positive volume balance, i.e. high volume in days of rising prices and low volume in days of falling prices, strengthens the stock in the short term. RSI diverges negatively against the price, which indicates a danger for a reaction down. The RSI curve shows a falling trend, which is an early signal for a possible trend break down. The stock is overall assessed as technically positive for the medium long term.



Period Vol.bal. Volatility Liquidity +/- %
1 day - 2.35% 221.83 +4.35%
5 days 87.38 8.50% 119.34 +5.00%
22 days 21.65 22.25% 206.77 +3.05%
66 days -9.50 43.47% 198.36 +2.53%

interesting post by Zak Mir Pro Taer yesterday..

Zak Mir



Reged: 28/06/07
Posts: 1509
Re: IMAGINATION TECHNOLOGIES (IMG)
#474263 - 06/01/11 11:36 AM Edit Reply Quote



Any weakness back towards the 50 day ma zone of 376p should be an opportunity to get into IMG for a retest of last month's best levels through 440p. ENDS

Just about at the SP, look out for buyers.

Talking of historical SP targets lets not forget this........

Imagination Technologies bounced by 6.1 per cent to 399p after Goldman Sachs started coverage of the graphics chip designer with buy advice. A recent pullback in the shares had factored in market share risks but understates Imaginations strategic position to grow from demand for tablets and smartphones, Goldman said. The broker set a 515p target price, partly based on the chances of a bid from a chipmaker

HI GOLDFINGER/////LOOK at shareholders on the sharelist of this company and then explain to us why they would or could be taken over ???I DON0T THINK THERE A CHANCE in hell JUST MY THOUGHT OF COURSE/

I have followed IMG for years and hold a few IMG SBs, with reasonable SLs, but there are less optimistic forecasts for IMG.

At 2013 forecast EPS the PE is over 20 and with IMG former history ummmmm.

I dont think the company has ever paid a div.

Looking at the chart, there seems to be a Triangle formation formed with attempt to break out upwards, but dont think it is worth my life savings.

----------------------------------------------------------Old T/P-----New/T/P
04-Jan-11---- Canaccord Genuity Hold------- 372.30p--- 360.00p---- DownGrade
23-Dec-10 ---Canaccord Genuity Hold---------370.00p----360.00p--- DownGrade

15-Dec-10----Evolution Securities Neutral----380.00p----515.00p--- Upgrade

14-Dec-10----Panmure Gordon Buy-------------380.00p----330.00p---Reiteration

14-Dec-10---Numis Securities Reduce----------380.00p ----Reiteration

10-Dec-10---Seymour Pierce Sell---------------- 363.90p-----230.00p - Reiteration

However, with the ARM deal and if IMG chips are used, my depression may be resolved.

Run out of patience with this one so got out with today's rise, seems to be to much technical noise written about them for my liking. Good luck all still in.

UMMMMH or UGGGGGH

Bit of both I think -):

Imagination Technologies Group ST: the upside prevails as long as 354.25 is support
11 Jan 2011 - 08:54

Click here to see our chart:
http://www.tradingcentral.com/chart/IMGGBp110111095217.gif
Our pivot point is at 354.25.
Our preference: the upside prevails as long as 354.25 is support.
Alternative scenario: below 354.25, expect 329 and 313.5.
Comment: the RSI is above 50. The MACD is above its signal line and positive.
The configuration is positive. Moreover, the stock is above its 20 and 50 day
MA (standing respectively at 373.71 and 373.13).
Supports and resistances:
441.5 *
426 **
410.75
378.6 last
364
354.25 **
329 *
---
TRADING CENTRAL is a commentary service specialising in technical analysis.
For sales enquiries please call your Reuters account manager or TRADING
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by phone: New York (1) 212 812 2400 Ext 29, London +44 (0) 207 429 3980 or
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Imagination Technologies Group
Buy/Neutral 600
48.6% Goldman Sachs

600P price target. And from Goldmans. Wow that takes some doing.

48% upside.

Up nearly 17% on today's news.

http://www.telegraph.co.uk/finance/markets/marketreport/8326735/Imagination-surges-up-as-Micro-Focus-melts.html

Brokers backing IMG..... could be another ARM. Gone back in long.

Imagination Technologies Group PLC

FORECASTS 2011 2012
Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Evolution Securities Ltd
03-03-11 BUY 28.50 12.30 42.50 15.10
Peel Hunt
01-03-11 HOLD 19.70 5.56 28.68 7.93
Panmure Gordon
24-02-11 BUY 31.60 9.29 45.20 13.40

Imagination Technologies Group PLC Latest Broker forecasts from Hemscott premium

FORECASTS 2011 2012
Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)


Peel Hunt
03-03-11 HOLD 19.70 5.56 28.68 7.93
Evolution Securities Ltd
03-03-11 BUY 28.50 12.30 42.50 15.10
Panmure Gordon
24-02-11 BUY 31.60 9.29 45.20 13.40

IMG buy note( #ADVFN $IMG http://t.co/6CBn6SS

http://t.co/6CBn6SS