Member Info for Hedgehog100

SIPP (currently 19.5p) looks to have attractive potential in both the short, medium and longer terms: 1. SHORT/MEDIUM TERM. • Strong positive newsflow as the company executes its initial property investment programme during March - June 2016. • Follow-up company development: larger fundraising(s), and further acquisitions. • Dividend policy: "The Company is targeting a dividend yield of seven per cent. per annum, and your Board expects to pay the first dividend in Q1 2017." 2. MEDIUM/LONGER TERM. • Growth in dividends. • Capital growth: " ... these properties can offer attractive returns on equity and the prospect of medium term capital growth as the chosen specific property category grows and becomes better appreciated by mainstream property investors." • Move to increased rating as the company grows, develops a track-record in its new sub-sector, and becomes more widely-appreciated by the market.

Confounded & Chesy, I couldn't make the meeting this week (25th. February), but you will have seen the very useful feedback on ADVFN from Ray who attended. Many thanks Ray for that. There is always plenty of opportunity for informal questions and discussion at these meetings, in addition to the formal voting. So things for GOS Systems look very positive going forward, as expected, though the company may wait until 2017 before relisting. I'm perfectly happy with that if it avoids premature dilution at a lower than necessary price. A takeover of any small company is always possible, but if it happened here I believe it would take at least a penny a share to stand any real chance. The company cannot be taken over unless shareholders agree, and no one person or group even has a controlling interest at present.

The mainstream care home sector has seen strong institutional investor interest recently, and HCP-SIP's more specialised focus looks to be ahead of the curve. With good scope to build a sizeable property portfolio in this area relatively cheaply, before institutions start bidding prices up. Moreover, unlike the shares bought by an investment trust, HCP-SIP's investments will not be buyable elsewhere. And to buy similar investments directly would be financially onerous for most retail investors, and without the liquidity of owning shares in a listed company. Shares are often temporarily weak at the time of a fundraising, as with HCP at 0.825p, but that can often present a god buying opportunity, as in this case.

It's also important to note that HCP-SIP will be undertaking an element of actual property development (with its increased scope for value-creation), as opposed to just buying 'completed' facilities for its purposes: "Initial Programme ... Two of the properties are already in operation as care facilities for children and available as sale-and-leaseback opportunities while the two other properties would be open market purchases of standard homes for conversion. The adaptation work required is modest with a subsequent local authority compliance check prior to receipt of a designated change of use." I.e. HCP-SIP will be more of an active business than an investment trust is. And HCP-SIP's investing policy focus has shades of how Duncan Bannatyne built a large part of his initial fortune: "The initial and primary focus is to make investments in purpose-built homes for adults with learning difficulties requiring support from carers (for example adults with autism), purpose-built care homes for the elderly and infirm and converted dwellings accommodating young adults/late teens requiring extensive support from social services." Duncan Bannatyne: "Net worth £175 million" "He eventually sold the business for £28,000, founding a nursing home business called Quality Care Homes which he then sold for £26 million[7] in 1997 and children's nursery chain Just Learning for £12 million.[9]" https://en.wikipedia.org/wiki/Duncan_Bannatyne

HCP (currently 0.825p mid) looks to have attractive potential in both the short, medium, and longer terms: 1. SHORT TERM. • Currently looks to be returning back up the the fundraising price of 1p, and a slight premium to post-fundraising cash of circa 0.9p per share. • Active positive February newsflow: 20:1 share price consolidation and name change to Specialist Investment Properties (both 8 February), and news re. completion of the fundraising. 2. SHORT/MEDIUM TERM. • Strong positive newsflow as the company executes its initial property investment programme during March - June. • Follow-up company development: larger fundraising(s), and further acquisitions. • Dividend policy: "The Company is targeting a dividend yield of seven per cent. per annum, and your Board expects to pay the first dividend in Q1 2017." 3. MEDIUM/LONGER TERM. • Growth in dividends. • Capital growth: " ... these properties can offer attractive returns on equity and the prospect of medium term capital growth as the chosen specific property category grows and becomes better appreciated by mainstream property investors." • Move to increased rating as the company grows, develops a track-record in its new sub-sector, and becomes more widely-appreciated by the market.

From HCP's 15th. January 2016 circular: "2.3 Initial Programme The Property Investment Adviser has initially identified four properties for the Company to look to acquire. The acquisitions would comprise a combined investment of around £1.3 million, of which it is expected that around 70 per cent. can be financed by debt. The Company would seek to raise the debt initially from Heritage Square a specialist property lender advised by Puma Investments as the Company believes this offers faster execution at competitive pricing. As the Company acquires more properties and builds up a portfolio of income producing properties, it will look to refinance this initial debt with a longer term facility. Two of the properties are already in operation as care facilities for children and available as sale-and-leaseback opportunities while the two other properties would be open market purchases of standard homes for conversion. The adaptation work required is modest with a subsequent local authority compliance check prior to receipt of a designated change of use. The Company would endeavour to acquire each home with an existing lease in place and with an established care operator. In relation to the two open market purchases, leases would be entered into with the care operator on acquisition which would be subject only to approval of the change of use. The Company will target such leases to be for a minimum term of 20 years (25 years on properties initially identified) on full repair and insuring (FRI) basis, with annual rent increases linked to the consumer price index (CPI). The care operator for the four properties has recently secured a substantial, term care placement contract with Birmingham City Council and needs additional space. This contract will support the care provider’s ability to meet the lease payments. The care provider is a well-established operator with over 10 years’ experience, already operates a network of 19 residential care units, one specialist school and has 36 young people in its care. It is a substantial enterprise with 250 staff based within five local authorities and also undertakes ad hoc work nationwide. The Property Investment Adviser has additionally identified a pipeline of similar transactions which it will introduce to the Company for the Company to seek to execute within two to three months of the close of the Capital Raising. The Property Investment Adviser would then aim to identify further acquisitions which would be part financed through raising further equity in a larger fundraising or raisings." HTTP://www.thehotelcorporation.co.im/

At 0.725p mid HCP is now looking very oversold, and great value compared to the £2M. + fundraising just arranged at an equivalent of 1p (20p post-consolidation). At this level the share will be trading at a big discount to cash after the fundraising, and operating in a defensive area of the property market that looks a nice haven in these uncertain times. Cur Bid Offer High Low Open Volume Chg Time 0.725 0.65 0.8 0.725 0.725 0.725 500,000 12:10:00 PM Sector Turnover (m) Profit (m) EPS - Basic PE ratio Mkt Cap (m) TRAVEL & LEISURE 0.0 -0.1 -0.29 0.0 0.4

Mr. DarkBlue, I think that we're in a new era of lower oil prices for at least the next decade, although we can expect big fluctuations in such a newer and lower price range, which will influence the price of oil shares. With regard to you second point, the majority of the petrol price at the pump is accounted for by duty and VAT: http://www.petrolprices.com/the-price-of-fuel.html

DarkBlue, Oil companies are geared plays on the oil price, i.e. they have exaggerated impact to both oil's rises and falls. E.g. a 70% fall in the oil price can cause a swing from massive profits into massive losses, so you would expect a greater than 70% fall in the share price.

To put TGL's late accounts into context - Uber successful global concierge company Quintessentially's accounts were recently filed nine months late: "Need that table, ticket, or rare item? Meet Aaron Simpson the upmarket fixer who knows the habits of the super rich By Sarah Bridge for The Mail on Sunday Published: 22:02, 5 September 2015 | Updated: 10:37, 7 September 2015" ... It set up hundreds of businesses, covering everything from wine and fitness to education. That model is being restructured, which Simpson says is why accounts were filed nine months late. ‘Give me a break,’ he says. ‘I’ve waited six months for my tax refund.’ ... While the concierge business has about £18.6 million in sales and makes £1 million in annual profit, these other activities mean the group’s total turnover is £65 million and it makes £4 million a year. ... " http://www.thisismoney.co.uk/money/news/article-3223583/We-tracking-customers-s-valuable-information-Meet-upmarket-fixer-knows-habits-super-rich.html

Lion's accounts were due to be filed by 31st. August 2015, so are just over four and a half months late. That's about half the period that uber successful global concierge company Quintessentially's were late recently: "Need that table, ticket, or rare item? Meet Aaron Simpson the upmarket fixer who knows the habits of the super rich By Sarah Bridge for The Mail on Sunday Published: 22:02, 5 September 2015 | Updated: 10:37, 7 September 2015" ... It set up hundreds of businesses, covering everything from wine and fitness to education. That model is being restructured, which Simpson says is why accounts were filed nine months late. ‘Give me a break,’ he says. ‘I’ve waited six months for my tax refund.’ ... While the concierge business has about £18.6 million in sales and makes £1 million in annual profit, these other activities mean the group’s total turnover is £65 million and it makes £4 million a year. ... " http://www.thisismoney.co.uk/money/news/article-3223583/We-tracking-customers-s-valuable-information-Meet-upmarket-fixer-knows-habits-super-rich.html I would anticipate that Lion's accounts will be published in due course, and that the strike off will not proceed. MMO's directors may well have been busy on other things recently ...

They say that every dog has its day. NCCL has risen from barely a penny in early December, to over 5p today (market cap. £12.8M.), and one deal was all that it took: 11/01/2016 16:03 UKREG Ncondezi Energy Limited JDA signed with Shanghai Electric Power http://uk.advfn.com/stock-market/london/ncondezi-enrg-NCCL/share-news/Ncondezi-Energy-Limited-JDA-signed-with-Shanghai-E/69957679

Bazzerhino, The investments made here were of sufficient quality for MMO to have been deemed to have fulfilled its investing policy. And as the company has fulfilled its investing policy, it can't been suspended or delisted for failing to do so. In addition, the NOMAD here hasn't resigned, which would damage its reputation and potentially jeopardise its business if this was a scam. In addition, MMO directors having been paying themselves in shares recently to conserve the company's cash, effectively therefore buying shares ... and at about double the current share price or more. I take comfort from the fact that directors have been paid in shares when there's plenty of cash: that's not consistent with this being a con. And there's no point them taking shares unless this is worth something, or else they just have a big stake in nothing. They are well-incentivised to deliver value here, so let's see if they can do so.

KENV rose from barely a penny two years ago to nearly 6p within a few months (and has recently been over 9p). And two years ago KENV was quite comparable to MMO at the moment: 24/12/2013 08:54 UK Regulatory (RNS & others) Kennedy Ventures PLC Final Results " ... As shareholders will be aware, Kennedy Ventures has been an investment company since going through a CVA and reconstruction in May 2012. Its investment policy is to make investments in the energy and resource sectors. We remain focused on those areas and continue to believe that good opportunities exist in these sectors although we are also prepared to look more widely at other areas and we have reviewed a number of such opportunities. Kennedy has in fact principally sought to do a reverse transaction and, although we have taken a number of transactions to quite a detailed stage, we have not yet identified one which, in the Directors' view, would be attractive in terms of valuation and future financing requirements to shareholders. It has in fact implemented its investment policy, as announced on 24(th) May 2013, having invested in a portfolio of quoted and unquoted investments in the resources sector. It subsequently disposed of its quoted investments, in view of uncertainties that the Directors felt were developing for small to mid cap stocks in this sector ... We do however feel that the Company needs to be more fully resourced and we are planning to bring in additional capital in the near future. We are hopeful that this will lead to a value enhancing transaction in the current year. ... " http://uk.advfn.com/stock-market/london/kennedy-venture-KENV/share-news/Kennedy-Ventures-PLC-Final-Results/60485192 The big gains at KENV came to those with vision and patience.

Robspu, We've previously been told that we will receive one share in the new company for each share we hold in Touchstone Gold. Although there could then be a consolidation of the new shares. Touchstone Gold itself will then probably be dissolved in due course.

I note that the ticker ITS is untaken on the London Stock Exchange (the guys at TGL would probably have checked first). And as an acronym it does have certain positive connotations; e.g. Information Technology Share, Instant Tenbagger Status ...

Robspu, It looks like ITS could be the new holding company for GOS Systems, for its relisting. Touchstone Gold has complicated legacy issues relating to its Canadian domicile and taxation, and its acquisition of GOS (because it was so cheap) doesn't seem to meet new RTO (reverse takeover) rules, so it simplifies things to remove GOS Systems from Touchstone Gold. And having a holding company to own the trading companies is a standard approach, and has advantages re. any future acquisitions and disposals.

Thanks Kr, a great find! "Incorporated on 5 January 2016" - The day after TGL delisted, quite a 'coincidence'. "Registered office address 32 St. James'S Street, London, England, SW1A 1HD" - Same address as Touchstone Gold, and Stanhill Merchant Bank. And I like the name: more exciting for a share than GOS Systems, and better portrays what the business does. It also better allows for subsequent acquisitions.

Corero Network Security (CNS) is second on the top risers list today: All-Share Price Change Kimberly Ent. 0.35 100.00% Corero Network 27.50 32.53% CNS's market cap. is now £45.5 million, compared to £4.8M. of turnover in 2014. Am I alone in thinking that GOS Systems could relist at a massive premium?

As I write, gold is $1,103.55 per ounce, a recovery from the recent low of $1,050. http://goldprice.org/spot-gold.html Still comparatively low, but that means that a good gold investment can be picked up for a bargain price. And gold can actually perform well in times of economic uncertainty, as a defensive investment. From a market cap. of about a third of a million quid here, the upside is potentially enormous.