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Morning, an encouraging set of results, slight concern about the increase in net debt but with their loan facility at £26m and overdraft at £11.4 they certainly have plenty of headroom. Early observation on volume activity is that the size seller(s) continue to lurk in the shadows, note as soon as there's a reasonable bid the sell-side size increases almost immediately to outsize, hmm... Little point playing until after the company presentation to analysts this morning as perhaps that may draw out some interest from the larger asset managers or hedge funds, not holding my breath.

Further to previous posts on my suspicion there were/are insto sellers, I see T Rowe Price sold 2mln shares up to the end of March this year, taking their holding to zero. There's probably a queue of them still given how illiquid this share has become, however this goes more than some way to explaining the massive decline in the share price. No respite in the sp weakness until there's a material change in the prospects of this company, no amount of hope or hype will change this. Results on June 10th may be positive but think any blip in the sp will be met with furtther selling, what a blood bath this stock has been!

Thanks, I have no position and have been watching to get long to play the break-out but was wondering if this re-test may occur and provide a better entry level. Tough one.

Question to the technical chartists, I see there's a gap formed on March 19th which has yet to be filled, isn't there a theory that these things usually get filled before new trends can be formed, save for when something structurally changes with the company ? If so I'm questioning whether we see 165p before 265p, anyone up on this stuff ? My previous thoughts have been that the stock is a no brainer at 150p but 200p there's more downside than upside risk given the high earnings multiple of IMG...

Thanks Lindon, all good points although my understanding is that they're sufficiently cash-flow positive to fund ongoing operations including CIT after the Atmel prepayment of $10mln was received, no ? My real concern has been the big insto seller that's been around, L&G possibly, as this has weighed heavily on the share price for months now which is a real problem with these smaller companies where liquidity/volumes are so low.

Per the note from Motley Fool/Lindon below it makes sense that the hope premium has now been fully removed and CIT is moved firmly to the back burner with the aim of making steady progress by infiltrating the ITO dominated market or with any luck it finds an entirely new/unexpected application and then it's game on once more. Until then the company has returned to being valued by it's core businesses alone with the optionality of a block buster being valued as just that. It should't be long before the sell-side brokers kitchen sink their expectations too and then with any luck the share price can stabilise and rebuild from there. I read the recent profit-warning as an effective kitchen sinking by the company and therefore the results on June 10th will likely be another positive set, albeit with no magic fairy dust from CIT. Long-term Buy once the brokers have capitulated !

N+1 Singer says significantly reducing expectations for CIT in FY15; update very disappointing, may take some time for market dynamics to “calm down”. Sees reduction in FY15 EPS est. to ~8.3p from 9.9p, notes rest of group in as good a position as has ever been. Liberum says competition, price pressure in touch sensors remains very strong; demand may pick up in the future though visibility remains low.

Think there's some case to be made given the mkt cap is now £87m as this is roughly equal to their FY 2013 sales, however with EPS at 6-7p the stock is still on c 20x earnings and therefore needs a material positive to recover from this long-term correction. I like the company but this is too painful to watch !

tend to agree with this view, little point playing this one until the momentum of news flow changes, it's been negative for ages now and Atmel's comments are nice but ultimately immaterial, stock is a hold at best down here.

Stock has been in major correction mode for nearly 18mths, -75% from the highs of 2012. Last gasp could be when the broker finally capitulates and writes CIT off from their earnings projections, 150p price target perhaps ?

Perspective is often lost in the day to day but quick check highlights Carclo now trading at a new five year low, their private tech bubble is well and truly burst it seems, ouch !

Thanks Lindon I appreciate the reminder re: Atmel, clearly news flow has been light in recent months so any even mildly positive snippets would be good. On the possible selling interest I can only attribute the constant size on the offer to this as it seems the logical explanation, we'll see in time of course. Cheers.

Haven't posted here in a while on the much loved Carclo but was wondering whether the recent RNS from L&G that they had reduced their stake tells a bigger story of their interest to reduce further? The daily price action and persistent offer of 3-5k shares on the offer side would suggest this may well be the case. Ie, a steady volume sell order, say 1/3 of all volume and hit any size bids if they come along ? I recently bot 10k shares inside the spread in a blink, hmm... Feedback/thoughts appreciated.

http://www.shorttracker.co.uk/company/GB0001751915/all GSA Capital registered a new short position of c330k shares on Feb 5th, small size in the grand scheme of things (for instos/hfs) but worth noting with regards to sentiment.

http://seekingalpha.com/article/1941881-atmel-looks-to-maintain-its-momentum-post-ces An interesting summary from a well followed contributor to Seeking Alpha in the above link on Atmel/XSense/Carclo, perhaps more interesting are the comments/dialogue beneath the story. Looks like Lindon is already on that given historic comments below. Anyway it seems to explain and link Atmel's comments on margins and recent price crash in the ITO space to Carclo's recent interim mgt statement, however the key maybe whether Atmel can get a foothold by offering low-margin/price sales of XSense to force/speed adoption, if so CIT firmly back on the roadmap for Carclo, albeit much later than expected/hoped for in recent times (Carlo Mgt taking this view it seems). This is the way of things in the tech space, pain or glory all the way !

59.9mln shares free float (total 65.93mln) according to FT.com, with >80% of those closely held by insto investors.

not to dampen anyone's enthusiasm here but this is the third profit warning for CIT from carclo since the beginning of last year, per the kitchen sink comment below. CIT now valued at zero, rest of businesses doing v.well, see last earnings report. Painful ride down for the big Insto investors, will be interesting to see what if anything any of them do, presumably it's just noise to them given how small the company is, let's see.

This stock is now -55% since October, that's a loss of close to £150mln in market value, leaving the company worth approx £116mln today on expected sales of £98mln this year. The company expected sales in CIT of £4-6mln and now expects this to be below £4mln or £2.1mln per the broker note below. The valuation/expectation bubble has well and truly burst but what's left is a consistently profitable company on ~1.2x sales, hardly expensive... At this valuation the company also has a very low cost option on CIT becoming something... It's about time the company kitchen sinked expectations for CIT given the various setbacks and competitive market-place, it's unfortunate of course but the right thing to do... I doubt Atmel will have anything to report on Feb 5th either as it's still so early in the ramping stage, suspect nothing to see here before H214 at the earliest... In hindsight it has indeed been a great short, alas.

Lindon per your comment on Institutional holders I saw a report recently that detailed Strategic and Long-term Asset Managers held 80% of the shares with net small increase over the previous six months, very little movement as you say (other than Blackrock shorting activity, now closed). Private holders seemed to make up the rest with more volume between them as you would imagine given the share price performance, very little market maker/bank holdings. In conclusion shares fairly tightly held. I recall the report was dated October/November last year and with almost no RNS updates since then one can imagine nothing significant has changed. Hold and ignore noise until real news flow justifies otherwise...

It's good to remember the company is dependent upon Atmel for the promotion and sales of the CIT/XSense product and with the various qualification and product ramp delays Atmel have been cautious to push the product with confidence until v.recently. It's been far too slow to gain ground vs expectations and so no surprise the shares have sold off on lack of actual sales. The risk of course is that others make progress while XSense starts to make a name for itself in the marketplace, however XSense is now reportedly good to go so the ball is firmly in Atmel's court. I'm sure the big insto shareholders are as anxious as us little guys to see some contract announcements. Patience is key but Q1/Q2 are now critical for the product to make headway, in the meantime it's good to look elsewhere as the low volumes and high volatility are fun for the market-makers only !