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In my humble opinion, I believe that investors sometimes spend so much time analyzing numbers on a page that they miss news that has the potential to make or break a company. Don’t get me wrong, I strongly suggest thorough analysis when investing, it’s just that there is a danger in burying one’s head in the numbers and missing the big picture. By the same standard, it is just as dangerous to watch only the big picture and miss the warning signs that a thorough analysis might reveal.
Having said that, I am somewhat surprised that the news coming out of the International Consumer Electronics Show (CES) does not appear to be impacting stock prices of participating companies, such as Imagination Technologies (LSE:IMG). IMG’s share price has continued to slide today by 2.5% to 175.10 pence. Even in the wake of a major announcement at the CES, IMG’s share price has not been this low since September 2009.
Although it is yet to be quantified – and I doubt that it could be at this early stage – Qualcomm (NASDAQ:QCOM) and Imagination have revealed that the former will begin utilizing IMG’s Ensigma™ IP in its Snapdragon™ 802 Ultra High Definition processor specifically designed for the new generations of smart TVs and tablets. The Ensigma, a Radio Processing Unit (RPU) is highly scalable and, therefore, emeninantly compatible with Qualcomm’s Adreno™ technology as well as with WiFi, Bluetooth, GPU, CPU, and video core technologies.
We are already witnessing the (r)evolution of mobile and radio frequency technology- something most of us had never imagined even a decade ago and, certainly back into the latter 20th Century and beyond. Really, it wasn’t all that long ago that some of us were enamored with the concept of television, those big boxes with little screens, or with table-set or wall-mounted telephones. Now the the TVs are hung on the wall, we carry the phone in our pocket – and we can watch TV on it! That is exactly why IMGs deal with Qualcomm is so significant.
Martin Woodhead, Executive Vice President of Engineering at Imagination said, “We’re delighted that Qualcomm Technologies is deploying our Ensigma IP for its innovative new chip. Our Ensigma RPUs uniquely support all major TV broadcast standards, and are gaining growing traction in the market as connectivity and broadcast functions are increasingly integrated onto SoCs [System on a Chip].”
Ensigma™ has scalability that is compatible with Snapdragon™, PLUS it enhance Snapdragon’s capability to be adaptable for all TV reception standards worldwide. These combined technologies are ahead of the global market curve and are, therefore, positioned for market dominance in an electronics tsunami that is on its way. Most of us just don’t see it yet.
