Imagination Technologies Share Discussion Threads

[sheep_herder] 22/6/2017 16:04

I'm quite familiar with market dynamics. However, they tend to hold on the sale of a product that has some level of quality assigned to it.

[pottsey] 22/6/2017 16:01

Feddie might not be that far off. If more than one party is involved a bidding war can take place just like with what happened with MIPS only on a larger scale. IMG with CPU/GPU is the type of thing some Chinese want to get independent and away from ARM/Japanese and others. Now that Arm is Japanese owned there could be more Interest for IMG from the Chinese.

[sheep_herder] 22/6/2017 15:43

freddie, good luck with that theory.

[freddie ferret] 22/6/2017 15:39

If you have two partys, both want something, both have bottomless purses, then the price becomes infinate.

[sheep_herder] 22/6/2017 15:19

If this was a successful healthy business then I could see a premium being possible. As it is, the company is dying, has lost its biggest customer, is losing the IP battle to ARM, and generally is going to find it hard to sell to new customers given the fact that their situation is so dire.

If management saw a way out of this then they wouldn't be opening up the company to a sale so my feeling is that any offer, be it for parts or all of the business, will be at a significant discount to what is thought of as the current 'fair value'. I've never seen a DCF breakdown of a company with no visible future growth path.

[bullet ant] 22/6/2017 15:11

I bought some with my very nice NUOG profit. Just gambling a chunk of profit for fun here.

[freddie ferret] 22/6/2017 15:10

Institutions use DMA these days hence do not pay brokers commissions, this means that they put through lots of small deals. The abscence of large deals does not mean the abscence of institutions. There have been one hell of a lot of deals through today.

[mallorca 9] 22/6/2017 15:02

Why aren't they buying shares at this 'ultra low' price then ?

[someuwin] 22/6/2017 14:30

"...Analysts at Liberum are more upbeat, and suggest a raft of possible bidders. Liberum raised its target price for the shares from 93p to 193p and thinks the sale price could be as high as 233p a share.

Numis said Google and Apple could also be interested..."

[twatcher] 22/6/2017 14:07

Anandtech is not a financial site, but speculates that the final selling price will almost certainly be at a premimum to the current stock price.



"As for a potential price for the company, assuming Imagination were purchased wholesale, after today’s announcement the company’s market cap has jumped to £400M (~$500M USD). At about half of the company’s 52-week high, this would be significantly cheaper than had anyone attempted to purchase the company before the Apple split. The final price tag then would be somewhat higher, as a sale would almost certainly come with a premium over the company’s current stock price."

I guess this is where we find out if IMG's RT is worth a damn, if it is then some of the premier graphics designers should be willing to fork out for it.

[twatcher] 22/6/2017 13:58

mallorca9, none of the long termers I know on here are locked-in, in fact the ones I know all exited.

Actually, the only person I know for sure who is currently locked in, is you.

[mallorca 9] 22/6/2017 13:54

I'm calling this one for a heavy fall based on it's £400m M/C.
I guess most of you are locked in from £2.50.
It's a difficult one.

[twatcher] 22/6/2017 13:48

Oh I've had a fair share of bad calls on IMG and some good, and some lucky. My recollection of them does tend to be equal.

[countryboy] 22/6/2017 13:45

Mirror mirror on the wall.
Who's the wisest of them all?

[mallorca 9] 22/6/2017 13:34

The share price just cannot get above £1.45.
My view is that this will fall sharply.

[mallorca 9] 22/6/2017 13:08

Open...

are you dreaming .. for a company that has only just returned to profit and then lost it's key customer.
This may be eventually picked up for peanuts.

[richardc77] 22/6/2017 13:05

Already has been neutralised and nobody likes a wise man who crows ;) also seeing as your main beef was always with Sweenoid, go and remind him over on IQE not me, as I don't care :)

[twatcher] 22/6/2017 12:56

Mallorca9 is getting close to being 'neutralised'

[0penallhours] 22/6/2017 12:41

Mallorca @ 11:43 "Apple will be holding onto their stake just to ensure that they can block any sale that endangers them"

Mallorca @ 12:02 "At what point will Apple dump their shares ?"

Seriously?

IMG have multiple parties "showing an interest", which means they want to buy the group as a whole. They could see the share price when they expressed an interest and know that any announcement would pump the share price somewhat. This means that they will be well prepared to pay over todays share price. I'd be surprised if any offer is under £1.60 when they become public.

ATB

[twatcher] 22/6/2017 12:37

Rob,

One generally remembers ones good calls.

I seem to recall you thought IMG's acquisition of MIPS was a fantastic bit of business.

Hubris indeed

[mallorca 9] 22/6/2017 12:02

At what point will Apple dump their shares ?

[rob_evans] 22/6/2017 11:58

"Rob_Evans16 Jun '17 - 13:05 - 27515 of 27557

There has to be a real question mark over IMG's ability to continue as a going concern long term. Potential bidders may well decide to wait until the fire sale ..."


Once again I called it. Another one to add to the list - MediaTek going Mali, Intel failing in mobile SoC, Apple designing its own GPU.

It always looked very optimistic for IMG to sell off divisions and try to continue as a PowerVR GPU IP company. Now the management have accepted reality, and have put the entire group up for sale.

A very sad end to what could, and should, have been an outstanding British tech company.

Brought down by hubris and stunningly incompetent management.

[mallorca 9] 22/6/2017 11:43

As Apple is the third biggest shareholder here I would think that any sale will be very difficult and protracted.
Apple will be holding onto their stake just to ensure that they can block any sale that endangers them.

[mallorca 9] 22/6/2017 11:39

I would expect that any moves down here could be quite sharp.