IMG - Let Your Imagination Run Wild

Back in the summer I stuck my head above the parapet on the iii BB, when gloom 'n doom was more the order of the day, saying I believed IMG should make £5 within 3 years i.e. by 2008. As expected the usual suspects gave me the proverbial bird back then, but more and more, current evidence seems to support my view that this is entirely plausible. Achieving profitability will of course be key to the change in sentiment needed to get some real momentum behind the sp which should also see many of IMG's greatest sceptics - those who have believed that all of the groundwork IMG have been putting in over the last few years was for nought - coming (back?) into the fold.

Beyond 2008, or alternatively once you start adding in potential revenues from the other IP blocks/sources (Digital TV, Car Telematics, TV on mobile, DAB/Pure/Frontier, PC/laptop graphics (SGX?)), the numbers could easily become pretty astonishing by today's measure.

Indeed, the propect of seeing IMG hit £10 by 2010 is, for me at least, not unreasonable, particularly if at some point during the intervening period the company manage/decide to:

i) pay a dividend
ii) return to shareholders a "special dividend" upon receipt of proceeds from a flotation of Frontier Silicon.
iii) via their partners, achieve shipment volumes in excess of 0.5 billion units per year. ARM broke the 1 billion units shipped figure in 2004, though from memory I seem to recall that, in general, ARM achieve significantly lower royalty rates across their IP portfolio.

Chris