Wednesday tips Round-up: Imagination and IG

14th Dec 2011 06:56

The Times's Tempus column takes a look at Imagination Technology, the company which makes graphics and display components for smart-phones and similar high-end devices.As Tempus explains, the business model relies on licence fees from chip-makers who adopt Imagination's technology, then a further royalty once the product is sold to consumers.Yesterday it revealed licensing revenues up 65% (with double the number of partners) while royalties rose 26%. Pre-tax profits rose 52% to £15.3m. Although Imagination does trade at at an eye watering 42 times annual earnings, Tempus says, given the expectation for the smart-phone market, and despite the company's loss making Pure Radio brand, Imagination is a strong hold.Meanwhile, Tempus's Telegraph rival Questor assesses the spread betting firm IG Holdings. With half yearly revenues up 25% against guidance of 23% and a 15% increase in active clients concurrent with an 11% increase in revenue per client the company appears to be going places. August was an intensely volatile month, which attracts spread betters, although clients have calmed down since then. The disappearance of MF Global from the Australian CFD (contracts for difference) market place and a growing geographic spread continue to make IG a buy for Questor.BSPlease note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only as not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.