Hedgehog100
09 Feb 2015
SCSW Tips Digital Barriers From the SCSW website:"Digital Barriers - Building world class IP in defence sectorFebruary 2015Advance surveillance solutions supplier Digital Barriers (DGB; 49p) marries three themes – the growth of international homeland security and defence markets; high levels of intellectual property; and strong management – as a likely contender for stockmarket success.The ..."[link] (Digital Barriers) is one of the most comparable (although still different) LSE companies to GOS Systems:"MEGABUYTEGOS Systems to list on AIM15 July 2013... We can perhaps best describe GOS as the ears to Digital Barriers eyes in terms of homeland security. Comparing the two companies further, whilst Digital Barriers continued along an aggressive M&A strategy post IPO, GOS looks to be more of an organic play earlier on in life. If this turns out to be the case, we see the ability to concentrate on organic growth at an early stage as beneficial for a company in what appears to be a high growth market. Moreover, McQueen was keen to highlight that the businesses that GOS has acquired already have strong customer relationships in a market that has high barriers to entry.... "[link] DGB was also a SCSW tip for 2015:nw99 20 Jan'15 - 13:50 - 85 of 90 0 0"Bought here as its a Sharwatch tip for 2015"[link] incidentally has previously been tipped by TechInvest.Like Falanx (FLX), Digital Barriers (DGB) looks to be more cyber-focussed than GOS Systems, without GOS's cellular capabilities.(FLX is also more consultancy-focussed, and lacks GOS's range of intellectual property.)This probably means that GOS Systems has higher barriers to entry and margins (especially than FLX), and a higher proportion of recurring revenues than FLX.[link] page 9 of GOS's November 2014 investor presentation (see ADVFN post by someuwin 18 Dec'14 - 11
5 - 2882 of 4196 2 0):"• Cellular is the 'hard to do' piece• Significant technology barriers to entry and hence few market players"[link] Systems is high growth and high margin, with recurring revenues, great intellectual property (13 families of patents), and providing essential services.It seems highly likely that in due course its qualities will be recognised by influential tipsheets like TechInvest and SCSW (Small Company ShareWatch).
Hedgehog100
02 Feb 2015
Booming Business, & Other Catalysts I'm expecting the next trading update for GOS Systems at the end of March: 15/12/2014 070 RNSNON Touchstone Gold Limited Update on Investee Company GOS Systems " ... The aggregate value to GOS of these two sets of contracts for the calendar year of 2015 is approximately GBP300,000. A further update on the business plan and revenues beyond the next few months will be provided at the end of Q1 2015. ... "[link] The first quarter trading update for GOS Systems should be very good indeed, because: 1. The mid December update was very positive, and suggested that the two new contract wins were normal. 2. In late January TGL said that it was upgrading its network to meet growing demand from existing and new customers. 3. Governments are pouring money into this sector because of the security situation: e.g. £130M. extra funding in Britain announced in December, and £325M. extra funding in France announced last month. 4. The same should apply in the private sector, which GOS Systems also works for. "Corporate In the corporate and commercial sector our solutions and services have wide applicability for the deployment of private communication networks including the control of unauthorised phone usage, TSCM sweeping and 3G/4G cellular and broadband products and design services."[link] "Customer 3 - Asia: a trusted partner of its customers, both government and commercial, this is a publicly listed integrated engineering group providing solutions and services with more than 22,000 employees and revenues of over US $6 billion in 2012. GOS is engaged with a number of divisions within this group to develop novel, complex, secure communication solutions to address their customers' needs."[link] GOS's contract-winning capability should also be helped by: 1. Its new public listing. (Which should be particularly helpful for larger contracts.) 2. The elimination of its debt by its administration. (Helpful in customer due diligence.) 3. Increased management time and focus on growing the business, as opposed to managing debt and trying to list. (Stress levels will also be reduced.) The March update should also provide full year guidance, and expand on GOS's corporate strategy. And this will provide more of the clarification and transparency that more cautious investors seek. Prior to this update, TGL's main potential share price catalysts are: 1. RTO (reverse takeover), or similar. 2. Tie-up with Cambridge Quantum Computing Ltd. 3. Investment from technology funds.
Hedgehog100
28 Jan 2015
Re: RNS 26/01/2015 070 RNSNON Touchstone Gold Limited GOS Systems to Upgrade Networks" ... GOS has begun implementing upgrades to enhance its core voice and data network in order to ensure that the networks can meet growing demand from existing and new customers. ... "[link] GOS Systems had turnover of a couple of million pounds or so, before its planned 2013 IPO, its network capacity was sufficient.And indeed there was no mention of any of the IPO proceeds being used for this purpose:"MEGABUYTEGOS Systems to list on AIM15 July 2013... Part of the £8m to be raised from the IPO will be used by GOS to complete the acquisition of Deltenna, which will add compact and high performance wireless products deployed in mobile telecommunications networks to its portfolio. No financials are given for Deltenna but we estimate revenues of around £1m. McQueen said that, following its fourth acquisition, GOS will look to concentrate on organic growth, although would not rule out further acquisitions if they were deemed to be value enhancing.GOS intends to use the remainder of the funds raised at IPO to invest in sales and marketing, which includes opening offices in Singapore and Dubai as mentioned above, as well as for R&D purposes and to also bolster its balance sheet to make it easier to bid for larger proposals. ... "[link] however, its network capacity is insufficient to meet growing demand from existing and new customers.The 26th. January RNS is therefore in effect telling us that business is booming.Albeit we would have expected that anyway, and indeed knew that anyway.
Hedgehog100
27 Jan 2015
Re: RNS From the November 2014 investor presentation of GOS Systems:"Secure Communications• GOS provides a suite of securecommunications systems and solutionsto government, homeland security,defence and commercial customers• Invisilink is a system for governmentclients that delivers secure mobiletelephony services to ensure privacyand security for all parties• The service is sold on a subscriptionbasis in the UK, and internationally it isoffered as a complete solution forbetween £350,000 and £500,000"GOS's services will increasingly be seen as essential given the current and projected security situation.Providing handsome high-margin and recurring revenues for GOS, in this high-growth and hard-to-enter market.Backed by a hugely impressive management team, and the financial muscle and deal-making ability of Stanhill Capital.
Hedgehog100
27 Jan 2015
Re: RNS "26/01/2015 070 RNSNON Touchstone Gold Limited GOS Systems to Upgrade Networks""GOS has begun implementing upgrades"The fact that the upgrades are underway indicates that they are within the company's budget, as well as illustrating the speed with which these guys move."to ensure that the networks can meet growing demand from existing and new customers"The upgrades are taking place to meet INCREASING DEMAND: this speaks for itself."The upgrades will also facilitate full UK government accreditation for network security under CESG guidelines."The CESG guidelines are for the PUBLIC sector, supporting this comment from Singray on ADVFN:Singray105 6 Nov'14 - 10:32 - 2029 of 4049 3 1"Indeed chesy, well everything is a gamble of course but look at what we are getting for a Market Cap of a mere 1.5 miln GBP. Been showing GOS to some friends who understand this sort of stuff and they are saying WOW! Its like a private version of GCHQ.""CESG publish new platform security guidance to help protect official informationPublished on 14/10/2013CESG, the Information Security Arm of GCHQ, has today released new security guidance for over ten different end user devices.The new online guidance is designed to help UK public sector security architects, system administrators and end-users as they deploy and use the latest laptops, desktops, tablets and smartphones.Building on the Cabinet Office's End User Device Security Framework, this new guidance provides advice to those deploying devices by providing details on how particular platforms can be configured to achieve the key security recommendations contained in the Framework...."[link]
sharksy1
26 Jan 2015
RNS TOUCHSTONE GOLD26 Jan 2015 070:13Touchstone Gold LtdRNS Number : 0852DTouchstone Gold Limited26 January 2015 Touchstone Gold Limited (AIM: TGL) ("Touchstone" or the "Company"
GOS Systems to Upgrade Networks London, 26 January 2015 - Touchstone, the AIM listed investment company is pleased to provide an update on GOS Systems ("GOS", a UK security technology group recently acquired in accordance with Touchstone's investment policy. Network Upgrade GOS has begun implementing upgrades to enhance its core voice and data network in order to ensure that the networks can meet growing demand from existing and new customers. As well as installation of new equipment and technology, the upgrades will provide network resilience and a flexible solution for significant expansion of existing capacity. The upgrades will also facilitate full UK government accreditation for network security under CESG guidelines. Details of the upgrades are as follows: · Replacement of all old SS7 gateway equipment;· Expansion of new multi-site redundancy database systems; and· Installation of additional mobile virtual network operator services into core network. These upgrades also enable GOS Systems to bring new services to its customers in a cost-efficient way. Franz Forrester, Chief Operating Officer of Touchstone commented: "We are upgrading our networks to ensure that network demand from ever-increasing usage growth can be met. This investment will also allow GOS to maintain the highest quality of service and to make our network more cost-effective, to the benefit of our customers business." About GOS Systems · GOS Systems is a UK security group providing a range of leading-edge tactical and strategic intelligence gathering and secure communication solutions for law enforcement, homeland security and government agencies around the world· GOS' intelligence gathering solutions provide real-time monitoring of cellular, voice, SMS, and IMSI and IMEI metadata.· GOS' safe communications solution offers secure mobile telephony services to ensure privacy and security for customers. For more information, visit www.touchstonegold.com or www.gos-systems.com For further information, please contact: Touchstone Gold LimitedTrevor Wells Tel: +44 203 301 9337finnCap LtdMatthew Robinson / Simon Hicks Tel: +44 20 7220 0500Peterhouse Corporate Finance LimitedTel: +44 20 7469 0936Charles Goodfellow This information is provided by RNSThe company news service from the London Stock Exchange
Hedgehog100
24 Jan 2015
Re: The Speed Kings! Ilyas Khan & Stanhill Capital are very shrewd business investors (which is how IK became a self-made multi-millionaire), and they wouldn't be backing Cambridge Quantum Computing Ltd. unless there was a sound business case for doing so.Not only that, but I.K. has repeatedly shown himself to have superb market timing, i.e. selling at the top, and buying at the bottom (as he is now doing with TGL).The major organisations involved in developing quantum computing include government agencies and unlisted companies, with state security being a major motive. And they are probably releasing little information into the public domain.More detail on CQCL's plans will doubtless be forthcoming if it lists, but in the meantime we can speculate.D-Wave, the world's leading quantum computing company, is supplying the hardware ... so others (e.g. CQCL) will have to supply the software (algorithms and source code) ...and the areas being addressed by D-Wave look similar to CQCL:"CQCL develops tools for the commercialisation of quantum computers by understanding quantum protocols and also quantum algorithms. In the coming period as quantum devices become more prevalent, the focus of CQCL's activity is the development of algorithms and source code.Our team focuses in three key areas where we work and co-operate both with engineering companies that develop quantum computers, and with organisations more focused on the software and operating system side:CryptographyFinancial ServicesMedicine and Biotech (including DNA mapping)"[link] Questions with the CEO of D-WaveThe CEO of quantum computing startup D-Wave says its machines are helping companies analyze Wall Street data and search for new cancer drugs."[link] CQCL have a business development officer in North America to develop the company's business there, which is where D-Wave is based:"Jimmac LoftonBusiness Development OfficerMr Jimmac Lofton is based in Denver, Colorado and is responsible for the company's North American business development strategy and also helping to maintain strategic relationships in certain areas including finance where CQCL has a particular focus in terms of developing quantum algorithms that will be useable in quantum computing environments.background Mr. Lofton was an investment banker and spent over 12 years working at Raymond James, and subsequently has advised a number of technology and natural resource companies in their investor relations and strategic outreach programmes."[link]
Hedgehog100
24 Jan 2015
The Speed Kings! ILYAS KHAN & STANHILL CAPITAL: THE SPEED KINGSThree examples:1. TGL's cancellation of its dual-listing with the Toronto Stock Exchange in April 2014 was accomplished in just four trading days from the announcement.In comparison, BHR took over four months to achieve the same thing -19/09/2013 070 UKREG Beacon Hill Resources plc Intention to Delist from the ASX[link] 070 UKREG Beacon Hill Resources plc Voluntary Delisting from the ASX[link] TGL completed a "substantial transaction" just four months after becoming an investment company on 30th. June 2014.Compare that to a shell like SRO, which has gone years without a deal.3. In just several months since Ilyas Khan formed Cambridge Quantum Computing Ltd. it has already reached a stage that many university spinouts never get to, i.e.:external funding from a merchant bank (Stanhill Capital), appointment of business development personnel, a designated (and very impressive) website, use of the LSE's RNS news service, and a Chairman of the quality of Sir Nigel Broomfield KCMG.[link] development is clearly their modus operandi: dynamic action, allied to a shrewd business sensibility.
Hedgehog100
22 Jan 2015
Re: £325M. new sector funding, Fra... From the November 2014 investor presentation of GOS Systems:"Global market has grown rapidly in recent years, andis estimated to grow by 7 per cent. per annum from2012 to 2017 to US$280 billion in 2018 (Visiongain,2012)Intelligence Gathering• DIAL, a family of products of bespokehardware and software systems formobile phone identity (IMSI/IMEI)detection for target identification and isoffered typically as a complete solutionaround circa £100,000• The technology can also be adapted fore-borders monitoring and cellularexplosive ordnance trigger and ‘bug’detection• Cellular eavesdropping ‘bugs’ are by farthe most prevalent devices used forillegal intelligence gathering and a highvalue productSecure Communications• GOS provides a suite of securecommunications systems and solutionsto government, homeland security,defence and commercial customers• Invisilink is a system for governmentclients that delivers secure mobiletelephony services to ensure privacyand security for all parties• The service is sold on a subscriptionbasis in the UK, and internationally it isoffered as a complete solution forbetween £350,000 and £500,000"Recurring revenues!From page 9 of GOS's November 2014 investor presentation: "• Cellular is the 'hard to do' piece• Significant technology barriers to entry and hence few market players"The fact that secure cellular communications is 'hard to do' is illustrated by the fact that GOS Systems had a deal to buy a cellular communications company (Deltenna) for £5M. cash, which was five times Deltenna's estimated revenues.
Hedgehog100
22 Jan 2015
Re: £325M. new sector funding, France The extra £325M. in France announced yesterday follows Britain's £130M. of additional funding for GOS's sector announced in November: "Lee Rigby murder: MI5 did not see Adebowale social media page saying 'Let's kill a soldier' Joe Murphy, Political Editor Nicholas Cecil Published: 25 November 2014 Updated: 08:37, 26 November 2014 ... The Prime Minister reviewed areas of the report including dealing with foreign fighters, tackling internet use by terror suspects and boosting the ability of security services to investigate them. He announced the government would make an extra £130 million available to security services to monitor and disrupt so-called “self-starter” terrorists. ..."[link] predicted then that other countries would follow suit:27-11-14 £130M. new sector funding Hedgehog100" ... Well done to the Government for committing such large additional resources to homeland security.In this era of government cutbacks, it highlights just how essential this work is.Other countries are also likely to increase their provision.And I would fully expect GOS Systems to be a major beneficiary. ... "
Hedgehog100
22 Jan 2015
£325M. new sector funding, France "21 January 2015 Last updated at 15:52Paris attacks: France to recruit more police agentsHundreds of new police intelligence agents will be recruited in France, and some defence cuts will be reversed, after the Islamist attacks in Paris.Prime Minister Manuel Valls said 2,680 new security-related jobs would be created, including 1,100 in police intelligence, over three years.Mr Valls pledged an extra €425m (£325m; $490m) in funds, saying 3,000 people were under surveillance in France. ...Analysis: Hugh Schofield, BBC News, ParisThe security service reinforcements are a recognition that France's intelligence-gathering - normally held up as a paragon in Europe - has fallen behind the times. New officers are needed but also new equipment, and new methods. ... "[link]
Hedgehog100
21 Jan 2015
Re: Hallmarks of Halma! Interestingly, when Halma floated in 1972 it was similar to the sort of investment company that TGL is at the moment: "Halma history ... In 1956 the Nahalma Rubber Estate Company Limited became Halma Investments Limited. The company ended its connections with rubber and its role changed to an investment management and industrial holding company. Halma was listed on the London Stock Exchange in January 1972 and became a publicly-traded company. A series of acquisitions was made of mechanical, electrical and electronic engineering companies and successful management generated strong organic growth. This created the basis for the international manufacturing group that Halma is today. The company changed its name to Halma Limited in 1973 and registered as a public limited company in 1981, becoming Halma plc. Halma has grown to be an established FTSE 250 business and currently comprises nearly 50 subsidiary companies operating worldwide. Today, Halma's technology centres on sensors, its markets are primarily the protection of human and capital assets, and the Group continues to grow through organic expansion and acquisition. You can review the Group's recent acquisition history here."[link]
Hedgehog100
21 Jan 2015
Re: Hallmarks of Halma! Although we're a long way from quantum computing becoming mainstream, that doesn't mean that there's not good money to be made right now.Classical computers didn't become mainstream until the 1980s, but companies like IBM and Intel were fabulous investments decades before that.Many university spinouts don't get to the stage that Cambridge Quantum Computing Ltd. already has, i.e. external funding from a merchant bank (Stanhill Capital), appointment of business development personnel, a designated (and very impressive) website, using the LSE's RNS news service, and a Chairman of the quality of Sir Nigel Broomfield KCMG.[link] And moreover the company has done it all in mega quick time, which illustrates the speed of development here.From this level it's a small step to obtain a public listing via injection into TGL.And since Qualcomm bought Cambridge Uni. spinout CSR (formerly Cambridge Silicon Radio) in October for £1.56bn., a hefty premium, there should be a real 'feel-good' factor about CQCL listing as a potential replacement.[link] (Nanoco) is another listed uni. spinout (from Manchester Uni.), and has a current market cap. of £228.43M. at 105.5p.Like CQCL it operates in the quantum field (quantum dots), and it was also a RTO (reverse takeover), into Evolutec (EVC), a failed biotech company.
Hedgehog100
21 Jan 2015
Hallmarks of Halma! "Why would Cambridge Quantum Computing Ltd. want GOS Systems?" The real question is: why would CQCL want a public listing? Answers: to help its profile, business development, investment rating, and financing. Plus the bonus of perhaps being the world's first listed quantum computing company. CQCL's relatively early stage (albeit developing fast) supports the view that CQCL would seek a listing via an already listed company, rather than an IPO. And preferably one with other operational businesses at a more advanced stage (step in GOS Systems and Smart Desk Systems). If there is a placing to accompany a CQCL injection into TGL, then investors will be buying into THREE businesses: i.e. GOS, SDS, and CQCL. And these are very complementary, not just from a business activity viewpoint, but from an investment viewpoint too. GOS + SDS have the existing revenues and profit, whereas CQCL has the more 'blue sky' excitement of quantum computing. So combining these into one listed vehicle would be a stroke of genius. I've seen this sort of combination done elsewhere and the effect has been quite explosive, both in terms of attracting investors and the company's rating. It doesn't actually matter whether the subsidiary companies actually work together or not. Look at Halma (a thousand-bagger): "We are a market leader in specialist safety, health and environmental technologies."[link] Essentially Halma is a large collection of separate but related businesses acquired over a lengthy period of time.People are legitimately impressed by CQCL.And if we're impressed, then the City will be too. It's the combination of brilliant technical ability (Professor Arthur Gibson & co.) allied to shrewd business nous (Ilyas Khan & co.) which is so compelling here. 100-bagger Autonomy, another Cambridge Uni. software spinout, succeeded so well because it had a firm business focus, and that's precisely what CQCL has.CQCL has two employees focussed on business development. One is on a secondment from Stanhill Capital and the other located in USA. Check out this write-up on the latter: "Jimmac Lofton Business Development Officer Mr Jimmac Lofton is based in Denver, Colorado and is responsible for the company's North American business development strategy and also helping to maintain strategic relationships in certain areas including finance where CQCL has a particular focus in terms of developing quantum algorithms that will be useable in quantum computing environments. background Mr. Lofton was an investment banker and spent over 12 years working at Raymond James, and subsequently has advised a number of technology and natural resource companies in their investor relations and strategic outreach programmes."[link]
sharksy1
18 Jan 2015
Technicals I must say the technical analysis is looking extremely bullish on the charts.. Medium term chart showing 8 bullish signals with zero bearish.. All key indicators say this is building a head of steam .. Hold onto your hats because a 3m market cap seems extraordinary, quite happy for this share to sneak under the radar for a while as it lets us buy in before the herds arrive. DYOR and all but respected directors have built a massive stake here and been steadily buying over recent months.All the best !
