Imagination Technologies Share Discussion Threads

[panic investor] 04/4/2017 12:14

Mallorca it's called trading !

[sorrento06] 04/4/2017 12:14

Samsung could buy and start a patent war.

[mister md] 04/4/2017 12:06

I disagree with "IMG was already quite cheap because of this long-recognised risk and over-dependency on Apple."

I think IMG was already very expensive due to association with Apple

Simply a trading share at the moment. Follow the (short-term) trend.

[nod] 04/4/2017 12:03

AndrewBaker, good points.I suspect though that this isn't Apple softening a target - more a cynical case of destroying a major competitor. If Apple really wanted to buy IMG at a bargain price they have now made that more difficult with their unnecessary announcement.The best thing now for IMG and its shareholders (I am not one) would be to hold a huge FOR SALE sign over the company for open bidding. There are plenty of Asian companies that would buy IMG for 50% above today's MV even without the Apple business in 2 years. It's also been suggested that competing US companies may be keen and snap it up for loose change e.g. Google, Microsoft, Amazon, or anyone else making screen devices. IMG was already quite cheap because of this long-recognised risk and over-dependency on Apple. I'm sure a lot of slide-rules have been run over IMG in recent years with this situation in mind. Perhaps a very good time to buy shares for a 50% profit?

[mallorca 9] 04/4/2017 11:55

Amazing that some are buying this !

[sorrento06] 04/4/2017 11:48

112k Buy at 114.9

[miahkaysor] 04/4/2017 11:47

£1.20p next stop!!!

[sheep_herder] 04/4/2017 11:46

AndrewBaker - you're dreaming. Apple don't want IMG IP full stop. They will go it alone like they always do and always have. If you read that comment on Ars that someone linked to yesterday, then if true, would make it very clear as to why no IP infringement would take place - because they're not building a GPU. I'm sure they'll be happy to move away from PVRTC once they release their new architecture. In fact, you probably won't have to wait too long for that info as they'll have to seed developers pretty soon.

Either way, as many people have now said, you can't start a patent infringement case unless you have proof that someone has infringed. Good luck with that.

There is a massive shake up coming at IMG as they restructure to work out how to move forwards. I wonder if they even have enough worth selling to pay off the debt.

Edit: thanks rbalakrishnan, looks like details starting to emerge.

[twatcher] 04/4/2017 11:33

I don't understand this conjecture that IMG played hardball in some discussions. Having been around this board as long as any, I don't think there was an Long term PI here who would have jumped @ £2 a share when the share price was say £1.10 in Jan 2016 or whenever it was.. And probably a lot of institutional investors would have done similarly.

That's all it needs. Other than IMG management putting out a "we don't recommend this offer", they have zero input on shares being sold.

And it's not as if the top talent would have thrown the dummy and not wanted to work for Apple, the evidence is to the contrary.

[rbalakrishnan] 04/4/2017 11:28

Essential reading. Detailed article here explaining Apple's GPU ambitions and how they have put together a top GPU team. The article concludes with:
"This suggests that Apple's move away from Imagination—a company it has a small vested stake in—is not driven by costs as much as a desire to move to radically new technology that Imagination itself couldn't deliver and that Apple doesn't want to share with its competitors."

[richardc77] 04/4/2017 11:20

AB agreed.

[andrewbaker] 04/4/2017 11:16

My humble view: IMG wasted lots on PURE, and eventually sold for a pittance lat year. It has so many eggs in the one Apple basket. Apple didn't buy IMG, when it should have, so I'm left thinking IMG tried to play hard ball and lost, and Apple will have big problems and costs in ditching everything IMG and replacing it with new technology that doesn't use ANY IMG IP/patents. So ...

My thought is that this is a softening up exercise so that Apple can get IMG graphics etc. tech at what they believe is a decent cost: not an inflated amount that may (or may not, of course) have been mooted by IMG, whose imagination may have been too far from reality when discussing with Apple last year about a bid.

I'm holding what I have - which is substantial - on the above basis, plus my belief that even broken up, IMG is worth more than today's share price. Buying more: not right now, as it will unbalance my portfolio, make it too 'risky' (according to my view of investment risk); and there's always a chance to pick up more later when some direction eventually shows up on this one. If I miss out either way due to holding off, so be it.

If you're not in now, or have a small holding, maybe a bite at the apple will pay off. There must be greater chance of gain than loss as it stands right now. All IMHO. DYOR.

[twatcher] 04/4/2017 11:02

No one in their right mind would NOT want to have Apple as a customer, and if you have Apple as a customer, then given their volume, they will always be pivotal to your business, unless you have 20+ smaller customers that can dilute that reliance.

IMGs problem has historically been that they were unable to get that reliance on apple down to a lower % figure. The single biggest missed opportunity remains mediatek. Just as mediatek's soc volume exploded, IMG failed to retain / take seats in the socs. IN those missed years, Mediatek shipped 200M+ socs, followed by 300M+ etc.

Not that even at that level would they approach the income from Apple, but it would have spread things a little.

And remember, that 40m+ of debt is soley there because just about every single penny of profit generated by apple for 6-7 years went across the road at Kings Langley and straight down the PURE plughole.

IMG would be sitting on a significant cashpile and thus be in a far healthier situation to deal with the current events, had it not been for HYs plaything known as PURE.

IMO Several key top management decisions see IMG in the position it is in today.

Thankfully, as it happens, and pretty much by luck, I sold my entire IMG holding some weeks ago.

It is worth remembering that IMG at least have some time to figure out a plan going forward. Significant cash will still be generated from Apple for the next 12-24 months, or maybe longer if they can come to a new deal. Unfortunately given Apple's history, I think once they make a decision they stick with it, so I would not be hopeful of IMG coming to a different arrangment with them.

And what of a legal challenge? Well first, you need a real product for infringement. So, that can't happen until Apple have produced something. At that point all hope of a deal is gone. Now you need some evidence there is infringment. Other that circumstantial, I don't know how you get that. PowerVr texture compression is ingrained in IOS, and virtually all current games use it. So that might be a starting point. However most importantly, IMG don't have the money to do this. So a legal play will only happen if someone buys them.

What remains totally screwy is why Apple simply didn't buy IMG once Intel lost interest and sold their shares around a year ago. IMG have been pretty much the perfect partner for Apple. Delivering top quality graphics IP, entirely keeping with Apple's needs of having best in class, SOCs.

Last year IMG got £60M from Apple. Assume this financial year (end of this month) and next financial year, it'll be similar. That's £180M. So pay £180M in fees, or pay say £500M and buy the company, which was entirely possible given it's low price point around the time of the shake-up and HY's departure.

Anyhow, best of luck to all that were caught up in this.

[sheep_herder] 04/4/2017 11:01

"once the new Apple software is released".... lols. Still no one has a clue what IMG do after all this time.

[mister md] 04/4/2017 10:55

maybe. maybe not.

Loving those broker calls of 100p 'after the event'.

[dins1249] 04/4/2017 10:52

Dead cat bounce?

[mister md] 04/4/2017 10:40

shareprice breaking out to the upside - interestingly ...

[mister md] 04/4/2017 10:36

yes that could be a 'cheap' way of avoiding a dispute

[dgarvey] 04/4/2017 10:34

Interesting that Apple poached staff from IMG and it's difficult for them to think differently. I suspect IMG will have multiple patient challenges once the new Apple software is released - could force a buyout if they have screwed up.

[mister md] 04/4/2017 10:33

Well, like Brexit this is a 2 year process, so who knows what will happen in the meantime

[someuwin] 04/4/2017 10:32

Jefferies International downgrades IMG to 'HOLD' cuts target from 219p to 95p

[dins1249] 04/4/2017 10:30

I don't think most people are listening to the facts - Apple have already said they are not pursuing IMG having had takeover discussions with them and they are not going to use their technology going forwards. What exactly have IMG left to offer to Apple or anyone else? imo IMG will just be broken up and another British Co will disappear.

[someuwin] 04/4/2017 10:30

Deutsche Bank reatins 'SELL' cuts target from 170p to 76p.

[t 34] 04/4/2017 10:27

Imagine , Apple says 'sorry we made legal blunder ' and then whoosh .

[mister md] 04/4/2017 10:11

yes perhaps by buying them out (small change for Apple) they can offer the employees some hope. Strange situation here, hope they come to some sort of deal/compromise