The Investment Column: Imagination Technologies
Wednesday 10 November 1999
Still, there's no danger of Imagination being valued on mere fundamentals. On analysts' full-year forecasts of pounds 3.9m pre-tax profits and 2.5p earnings per share, the shares trade on a forward p/e of 78. There's much to support the rating, however.
The success of PowerVR has been built on games consoles. The big prize is domination of the fragmented market for graphics chips inside personal computers. Imagination is licensing its technology to STMicroelectronics, which sold five million PC graphics chips in the past 18 months. For the time being, STMicroelectronics lacks the partnerships with the big PC manufacturers required to make PowerVR a real money-spinner in this respect.
Still, Sega's Dreamcast is likely to have a three-year lifespan, and Sega is funding development of the next generation of PowerVR chips.
Next autumn, Imagination should complete development of PowerVR for digital television set-top boxes. This is also licensed to STMicroelectronics, whose chips appear in more than half of all set-top boxes produced.
The possibility that Imagination will tie-up with Symbian, the mobile- phone manufacturers' joint venture, to use PowerVR in handheld devices, and the likelihood that STMicroelectronics will unveil a deal with a PC manufacturer will support the shares at these levels and investors should not be tempted to sell.
Board creates magnetic field to achieve lift
Follow the latest events from this Champions League fixture
Company reveals $542m investment in start-up building 'a rocket ship for the mind"
Singer says the track was 'force-fed down people's throats'
techThe original free dating app will remain the same, developers say
- 3 Drink alcohol and eat meat to improve male fertility - but cut down on coffee, studies suggest
- 4 Former East 17 frontman Brian Harvey turns up at Downing Street and 'demands to speak to Prime Minister'
- 5 The inventor of the Facebook 'like' button says he never made a 'dislike' button because he feared the 'unfortunate consequences'
Ukraine crisis: Donetsk 'tactical missile' explosion at factory sends blast wave across rebel-held city
Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
Oscar de la Renta dead: Legendary US fashion designer dies after long cancer battle aged 82
Banksy arrest hoax: Internet duped by fake online report claiming artist's identity has been revealed
Super-sized ships arrive in Britain: How big can they get?
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver 'kicks gay couple off for kissing'
Lord Freud: Tory welfare minister apologises after saying disabled people are 'not worth’ the minimum wage
Lord Freud hangs on as MPs of all parties 'call for his head' over disability comments
iJobs Money & Business
£23000 per annum + pension and 22 days holiday: Ashdown Group: An established ...
£27000 per annum + pension, 22 days holiday: Ashdown Group: An established ind...
£23000 - £26000 Per Annum: Clearwater People Solutions Ltd: Our client is curr...
£25 - 30k: Guru Careers: A Corporate Actions Administrator / Operations Admini...