3SOF

from yahoo! message board:
CHASE IS STILL HERE! I subscript to this financial newsletter and they are very high on IMMR; however, here is their approach for trading IMMR.

Why We Sold 50% Of Immersion

Following a question we received about our decision to sell half of our Immersion (Nasdaq: IMMR) position, here's the thinking behind that and an important insight into our small-caps investment strategy.

Question:

Hi, Karim... first of all thanks for the great newsletter. I look forward to all the great insight that you and your team have to offer. I was wondering why you suggested that we sell 50% of our position in IMMR if you believe its future is bright. I am a member of the Oxford Club, (which is how I learned about XPR) and they usually advocate not selling our winners unless the fundamentals change, or if we hit a trailing-stop. This is not the case obviously with IMMR, since it seems to have quite a bit of momentum lately. I know there is nothing wrong with taking a profit, but why sell if there is still room to grow and the future of the company is so bright? By the way, I was able to buy it $9.77 when I subscribed and sold half my position today, at $19.59, locking in a 101% gain in two months. Thanks in advance for the response and keep up the great work!

P.

Response:

Great question. And nice gain, by the way. I employ several exit strategies. Each one will depend on the situation. That's what makes us very different from just about any other service, including the Oxford Club, our sister organization. Our editors are professional traders, so we try to employ our trading philosophy in every pick we make. Some picks are longer-term, but our mandate is, as our name suggests, to give readers "accelerated profits" on a regular basis.

On Immersion, I do think the company has an extremely bright future. But there are several reasons for the suggestion to take your original investment off the table. First, I don't know how much people had on the table! Some members have written in, saying they've made more than $50,000 on the trade - and still maintaining a huge position. It's critical that you are never too heavy in one position - regardless of how great the potential is. It can be disastrous - an expensive lesson that I have no wish to repeat, or have you learn.

Second, Immersion's share price raced ahead of its fundamentals. When shares touched $20.68, the company was trading at more than 15 times sales. The only saving grace is its huge cash position and the continued signing of new contracts. Now the company has to show that it can monetize this great opportunity.

Third, there was a huge short position in the shares. I believe what we saw as momentum was a combination of good news (Nokia, Russell 3000) and a short squeeze. In addition, the stock received huge coverage from several news organizations like CNBC, Bloomberg, Reuters and other investment professionals. This was a perfect storm of good news, which added fuel to the fire. The daily volume now exceeds one million shares - but we still remember when a high volume day was 100,000 shares.

Fourth, we expected the rally. We issued buy ratings, even when shares were at $10 and $12 ("if you don't own any shares, you should"). But it occurred too quickly and with such explosiveness that the stock was in danger of imploding because of momentum players who buy with recklessness and sell with the same recklessness. Your exit point is a perfect example - the shares fell by 20% in a matter of two days and are now consolidating in the mid teens.

Finally, I would like us to hold a position in Immersion for the very long-term - with NO risk. And the only way to accomplish this is to have ONLY the profits at risk, and not our principal.


Good trading,


Sentiment : Strong Buy

IMMR=TouchSense Technology = great future:
http://www.thehindu.com/seta/2007/07/19/stories/2007071950021500.htm

Thanks for your posts and investigation nexta

Nokia issued the same press release IMMR published about their licensing deal, so, no financial details were disclosed.

TouchSense (R) is a great name and technology:

• Immersion Introduces TouchSense(R) Tactile Feedback for Touchscreen-Based Portable Devices
Business Wire (Wed, May 23)

I can really see the future of mobile devices, no keypad, just the screen, to save space. That's the way to have a mobile phone where one can watch TV, for example, and for it not to be too big. And what about those Palm's and Blackberries? I never enjoyed that small pen thing ... they will work much better with IMMR's technology.

So, get up and purchase a license. The price is only $1 per device sold

(I don't know if this is the actual price, in Sony's litigation case the price used was 1.37% of the revenues).

I'll keep holding IMMR, no doubt the good news will keep flowing, and there's absolutely no need for dilution, because the company now has a cash balance of $137.5 M.

Last year there were 1billion (10^9) cell phones sold World-wide. That's merely enough for India and definitely not enough for China alone (well, toddlers are not yet up to speed using a phone
Nokia has ~40% of the business. Truth is only the high end phones will have the feature, but those are at least 10% of the total share, which is still not bad and can bring Immersion a hefty profit.

Quote from: berloga on July 19, 2007, 08:55:56 AM
Last year there were 1billion (10^9) cell phones sold World-wide. That's merely enough for India and definitely not enough for China alone (well, toddlers are not yet up to speed using a phone
Nokia has ~40% of the business. Truth is only the high end phones will have the feature, but those are at least 10% of the total share, which is still not bad and can bring Immersion a hefty profit.

I agree berloga.

Here's another use for Immersion's TouchSense technology, slot machines:

http://investors.com/breakingnews.asp?journalid=45713869

(it's old news, but helps to understand the potential of the technology)

Now I'm wondering if perhaps sometime in the future we won't have websites also with this touchscreen capability, say, you want to go to the Main Portfolio page, and instead of moving your mouse, you just touch the website's button. I don't know how useful could that be, but it would be cool 

I'll keep holding IMMR, starting to come back from the slump.

TouchSense Technology will be indispensable in medical science, treatment, help for handicapped people .... everywhere

nice:

It is evident from the weekly chart that Immersion Corp. (NASDAQ:IMMR) traded within a rising price channel between 2004 and April 2007. We see that the stock commenced a rally within the channel in July 2006 and subsequently broke out upwards in mid April 2007, after the company announced that it had agreed to settle the patent litigation with Sony Computer Services and entered into a new long-term business agreement to explore the use of IMMR's proprietary technology for its products. The stock's phenomenal rise since then to the $20.50 levels in a matter of just four months has been supported by the launch of a series of new products and the addition of mobile bell-weather Nokia to its list of mobile OEMs (LG and Samsung are IMMR's customers) and licensed its technology to two game accessories manufacturers (Refer other Significant events). That the company continues to develop and launch new surgical stimulation systems and seeks new applications like navigation systems for deploying its technology is a huge positive. IMMR also is expected to benefit from the launch of 10 mobile phones with its technology in H2 2007. IMMR's revenues should also get a boost from the fact that revenues from Sony start flowing in from Q2 2007 and those from Nokia in the Q3 2007. The stock's 19% plunge over two days in mid July, was triggered, apparently by an analyst downgrade. This sharp fall has served as a correction for the overbought condition in the daily and weekly RSI. On the daily chart, we see that the stock took support at $15.75 levels and has resumed the uptrend. As the $15.75 levels constitutes a strong support, we believe that the downside on the stock is limited to the said levels. Given all of the positives listed above, we believe that an up move to the $19.3 levels is quite likely in the short-term. The company is scheduled to announce Q2 results on 2nd August.

http://www.palmaresearch.com/Contents/IMMR.asp?Phase=u&TempTicker=IMMR&sid=b042c413-3efe-44a9-a08b-04abd6e69e17#

Quote from: Garoh on July 18, 2007, 03:18:58 PM
Very nice company ...

for now we could see another low probably around 15.8 will be a good buy for me ...

It's aunbelievable too see a stock go down 16% just because of a stupid downgrade 

La-onda  I think they took it from my post 

Thanks for the information la-onda I wonder where they got the following:

QuoteIMMR also is expected to benefit from the launch of 10 mobile phones with its technology in H2 2007.

I didn't see it in any press release or SEC form, but I sure welcome it. Well, I guess Nokia wouldn't license the technology and then not use it in their mobile phones. Since IMMR's license model is based on a "per unit sold" basis, this seems like terrific news (but we need to confirm it over the next few updates).

IMMR is about the future, not the present, but the future is closer everyday, and the market always looks ahead. I'll keep holding IMMR.

Sold SILC today with an automatic stop at $20. Can you believe it, the thing opened at $24 and sold out below $20? Don't regret it - learned the same good lesson I saw before in GIGM, SILC and others: +10% in pre-open, sell and take a break. Can pick it up later if you want.

Used the money to buy IMMR at $17.63 today. Good pick David!

Driver assistance system combines image, navigation


Christoph Hammerschmidt 
EE Times Europe 
07/23/2007 10:49 AM 
MUNICH, Germany — Siemens VDO is developing a driver assistance function that aims at preventing motorists driving inadvertently against the traffic on motorways. The system combines input signals from a camera and navigation systems.

The system consists of a camera placed near the rear view mirror, a computer running an image processing software to recognize the traffic sign and a navigation system. In order to recognize that the driver is about to enter a motorway in the wrong direction, the navigation system has to provide data that are exact enough to identify the lane which the driver is using. In the case of a wrong turn, it can warn the driver through a warning sound, by displaying a message on a head-up display or by haptic warning signals such as shaking the gas pedal or the steering wheel.

The research complements Volkswagen's catalog of camera-based driving functions presented recently during a congress on automotive electronics. A Siemens VDO spokesperson explained the project is still in the research phase. He expects, however, the next vehicle generation to be equipped with the system.

It´s about IMMR technology

I saw the little movie about the company's technology on its website and I must say that I wasn't all that impressed.

Hi David,
I AM impressed... It is not  touch screen technology, but touchSENSE technology - you will FEEL something by touching screen or whatever. And IMMR has licence for touchSENSE and probably is only one with such licence on the world  - I hope so 

Best of the Best: Today's Top Investment Ideas
Immersion: Toby Smith's play on touch screen technology    Digg It! 
Friday, 20 July 2007 
"The launch of Apple's iPhone, will lead to an even-greater focus on touch-screen technology," notes Toby Smith, editor of Changewave Investing.

He explains, "There's one company that owns patents to tactile-feedback technology that will make these interfaces feel more connected." Here he looks at a recent recommendation, Immersion (NASDAQ: IMMR), a company involved in "haptics" – the science of touch.

"If you're a gadget geek, you certainly have had a chance to operate a Palm device or Pocket PC that accepts screen inputs from a stylus or finger presses, but I'm talking about the next generation here.

"After people get their hands on the iPhone and begin to control all its functions with simple finger gestures, they are going to want more devices that use the technology. This trend is showing up in other phones like LG's Prada model and even Microsoft's touch-screen table computer prototype -- so this trend is just getting started.

"One of the things that will make the touch screen really take off, though, is its ability to not only touch these seamless screens to make inputs to your new devices -- but to feel something while you're doing it. There's one company that owns patents to this tactile-feedback technology that will make these interfaces feel more connected is Immersion.

"Immersion's goal is to incorporate a third sense into your digital technologies by adding feel to sight and sound. In the last 14 years IMMR has earned more than 600 patents around the world, many of which fall into the category of 'haptics' -- the science of touch.

"The company is the leading IP owner in digital haptics, recreating the feeling of a keyboard key being touched and pushed down on a touch screen through vibration. Appropriately enough, Immersion calls its technology for providing tactile feedback 'TouchSense.'

"The bottom line is that the players who want the best digital touch-screen experience will have to come to Immersion and license their patents. Soon, companies selling billions of digital devices such as full-screen mobile phones, GPS units, MP3 players, game controllers and remote controls will be paying Immersion a royalty for each sale.

"Touch-screen technology will be the 'next big thing' for the latest cell phones and smartphones. And I believe that the iPhone has some Immersion technology inside to help with the feel of hitting the keys while typing on its virtual keyboard.

"This is a $20 million sales company that should be at least double its sales every year during the next two to three years. Toss in a six times sales multiple, and I anticipate a $600 million to $700 million market cap just on its TouchSense patent portfolio.

"Most of their revenue currently comes from the video game controller world, but that's really just the tip of the iceberg. Touch-based machine control is a big wave of growth we want to ride, and Immersion is the best way to play."

Have a nice day
Eva

...and BMW...
http://www.siemensvdo.com/press/releases/chassisandcarbody/2007/SV-200703-001-en.htm

Thanks for those three articles related to IMMR nexta, we need all the information we can get ... because financial details are scarce.

I've been thinking about the 1.37% royalty guideline that came out of the court trial with Sony, but numbers can be substantially different. If we're talking 1% and Nokia's phones have an average selling price of $100, IMMR may earn $1 for each mobile phone sold using its technology. Since Nokia sells about 400 million mobile phones a year, we could be talking about, say, $200 M in revenue (if half of the mobile phones use IMMR's technology). That would put the company's market cap at no less than $2 B, because almost all of those $200 M would be profits (well, not all because of taxes).

It's hard to figure out the future fundamentals of IMMR, but certainly the future is much different from the past, to the better.

I'll keep holding IMMR.

IMO - no in distant future, but just now:

A Sony representative confirmed on Thursday that controller rumble will make its way to the PS3 for the first time, this after several lawsuits surrounding the technology.

http://www.pcworld.com/article/id,134511-pg,1/article.html

I think, they mean lawsuit vs. IMMR