Why the IMImobile share price shot up 50% on Monday

first_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Tom Rodgers | Monday, 7th December, 2020 | More on: IMO Enter Your Email Address I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Image source: Getty Images Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. The IMImobile (LSE:IMO) share price has gone beserk! On Monday 7 December the price of the AIM-listed cloud software company shot up an incredible 50%. So what exactly happened to see the London firm’s market cap skyrocket from £329m to £489m overnight?On Friday, the IMImobile share price stood at 402.5p. But at the opening bell on Monday, it immediately rocketed to nearly 600p.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Cisco buys IMImobileUS telecoms giant Cisco swooped for IMImobile, confirmed by a company RNS to the London Stock Exchange on Monday morning. Cisco agreed to pay £543m for IMImobile. It means that anyone who has spotted the IMImobile share price and invested will be entitled to receive 595p in cash for their IMImobile shares.Cisco said the reason why it decided to make the move is so it could get access to IMImobile’s  automated customer experience software. The US giant praised IMImobile’s software package, saying it made it “easy for businesses to communicate with a customer in that customer’s channel of choice” as well as allowing it to manage interactions “across the entire customer journey“.That’s all very well and good. But why would a $187bn market cap behemoth like Cisco have a  minnow like IMImobile on its radar? Growth challengeWhen companies grow to the size of Cisco, or Google, or Apple, it’s very hard for them to generate growth and improve their share price organically. So they turn to the business tradition of using their massive reserves to buy out the competition instead.Legendary General Electric CEO Jack Welch said it best back in 2009. “If you’ve got the cash, go out and buy or bury your competition…Steal their employees. Steal their R&D people. Bury them.”It’s a dog-eat-dog world out there. And companies are competing not only on the quality of their products, but also on the “interactive” experience they can offer their customers, Cisco said. So taking over the competition in the form of IMImobile instead of having to reverse-engineer their product? It keeps Cisco as the market leader in its field.IMIMobile share price now Even if the IMImobile team would prefer to stay independent and build their own products, it’s very difficult for a publicly-listed company to ignore a massive cash offer. Especially as the 595p per share bid comes at a level 51.6% higher than the share price the day before Cisco made the approach.When the company originally joined AIM in 2014, the IMImobile share price was just 120p. When a takeover like this happens, it can mean a huge payday for long-term shareholders. Suddenly the £5,000, £10,000 or £50,000 they have invested over a number of years jumps up by 50%.So for more adventurous investors, it can be worth looking outside traditional FTSE 100 or FTSE 250 companies.What to look for It’s a huge result for IMImobile shareholders today. So as a long-term investor, it’s often worth considering which businesses might be a target for larger companies. Well-regarded AIM-listed firms like Gamma Communications and Team17 could be worth a look, in my opinion.Companies I would be looking for include innovative smaller firms with trademarked or patented intellectual property that the bigger fish in the pond cannot easily copy.  Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. TomRodgers owns shares of Team17 Group. The Motley Fool UK owns shares of and has recommended Alphabet (A shares) and Apple. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.center_img Simply click below to discover how you can take advantage of this. Our 6 ‘Best Buys Now’ Shares Why the IMImobile share price shot up 50% on Monday “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. See all posts by Tom Rodgerslast_img

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