Member Info for Hedgehog100

From the November 2014 investor presentation of GOS Systems: "Secure Communications • GOS provides a suite of secure communications systems and solutions to government, homeland security, defence and commercial customers • Invisilink is a system for government clients that delivers secure mobile telephony services to ensure privacy and security for all parties • The service is sold on a subscription basis in the UK, and internationally it is offered as a complete solution for between £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. And GOS's new Mobile Virtual Network Operator (MVNO) status, announced today, sets it up beautifully for a step change in turnover and size. As an MVNO, GOS is now in the same category as Virgin Mobile: "Virgin Mobile UK is a mobile phone service provider operating in the United Kingdom, and a subsidiary of Virgin Media. The company was launched by Virgin Group in 1999 as the world's first Mobile Virtual Network Operator (MVNO)." http://en.wikipedia.org/wiki/Virgin_Mobile_UK But with a very nice 'twist': i.e. GOS'S secure communications offering gives it a niche that is becoming increasingly sought after, but hard to deliver. The phrase 'licence to print money' springs to mind.

Vfo21, Here is your post that I referred to above: "hedgehog, I have previously commented on the link between prof. Gibson and QC/QT. I prefer to talk to people running the business than relying on the PR machine. In my position I have a chance to meet people face to face - actually if it happens that I meet people from CQCL in February (which I hope so and sorry I cannot disclose the actual event - it is not for public, by invitation only) then I will happily update you what I think after talking to them. My suspicion is that their North American business has to do something with a Canadian co. called D-wave - covered in my previous posts. vfo" vfo21 - 18 Jan '15Recommend 3 | Report http://www.lse.co.uk/ShareChat.asp?page=8&ShareTicker=TGL&share=touchstone Quantum computing WILL change the world massively. Time will tell who becomes the leading hardware company, but at the moment D-Wave are in that position. And if CQCL are partnered with them, they have an opportunity to ride that success.

23/03/2015 07:01 RNSNON Touchstone Gold Limited GOS Systems signs new MVNO agreement " ... In particular, the MVNO status enables GOS to integrate its mobile services more cost effectively and extends the growth of GOS' secure voice and covert communication management systems. Customers will benefit from a seamless, resilient and secure communications system supported and billed by GOS. ..." http://uk.advfn.com/news/RNSNON/2015/article/66009596 Superb stuff. They are clearly intending to grow this company very significantly, and have the expertise and backing to do it. Remember that the Chairman of GOS Systems, Peter McKee, was previously head of TRL Electronics (TRL), a similar company. TRL IPOed in July 2004 at 130p, and was taken over within two years at 360p (about £90M.), nearly three times as much. http://www.investegate.co.uk/trl-electronics-plc/rns/admission-to-trading-on-aim/200407150800048652A/ http://www.defenseindustrydaily.com/l3-buys-british-ecm-firm-trl-02280/

Vfo21, You seem to be changing your tune a bit, as from memory I believe that you have previously indicated that you believe that D-Wave and Cambridge Quantum Computing Ltd. could indeed work together. I can look for your post if you like. There will always be a few envious sceptics, but money talks. Big institutional investors have invested C$174M. into D-Wave, and its been selling its computers for $10 million each. And a very shrewd and successful multi-millionaire (Ilyas Khan) has devoted his time and money into Cambridge Quantum Computing Ltd. Have you achieved even a tiny fraction of the business success of Ilyas Khan? D-Wave's new 1,152 qubit processor is due for launch imminently, and I think that it could surprise a few people with its capabilities.

Sausagedog, Neither of those!! It's just a function of the significant 'market imperfections' that pertain to penny shares, causing delayed movements both up and down. But that creates opportunities for those able to act fast.

Thanks Sausagedog. The quantum computing angle adds some extra spice to what would already be very enticing TGL fare.

Thanks for that YellowSnow - a good spot. This "growing rapidly" statement is explicit confirmation of what was already being indicated, but is still great news. And coming just ahead of a trading statement for GOS ... I CAN'T WAIT!! Similarly with the "aggressive ‘build and buy’ strategy targeting specialist, world-class technology businesses" part. News on a quality tech acquisition should be imminent, and again I can't wait!! "We are growing rapidly through an aggressive ‘build and buy’ strategy targeting specialist, world-class technology businesses based around our core proposition of intelligence collection and analysis, including target identification and location. GOS Systems is part of Touchstone Gold Ltd which is listed on the AIM in London (AIM:TGL)" http://www.gos-systems.com/about-us/

Two thousand-bagger tech stocks: 1. In hardware: "Intel went public in 1971 with an IPO value of only $8 million". http://blog.themistrading.com/david-weild-how-to-revive-small-cap-ipos/ At its peak market capitalisation, in 2000, its market cap. was about $500 billion. 2. In software: Microsoft went public in 1986 with a market capitalisation of about $500 million. At its peak share price near the turn of the following decade, its market cap. was well over $500 billion. D-Wave could perhaps be characterised as 'the Intel of quantum computing'. Which raises the intriguing question: who will become 'the Microsoft of quantum computing'? The prize would be rich indeed, in view of the fact that quantum computing should eventually be bigger than classical computing. And the 18th. October 2014 issue of "New Scientist", in a five-page article on quantum computing entitled "QUANTUM COMPUTING BEST BUYS", stated that: "Hardware is important, but what really matters is the software." Well, Microsoft got its big break in 1980 with a contract from IBM to provide software for the IBM personal computer. And Cambridge Quantum Computing Ltd. could be in line for a contract to develop software for D-Wave ... With the business guru and visionary Ilyas Khan behind CQCL (as well as TGL), it clearly has the potential to become a quantum computing leader. And IK's massive share buying of TGL is clearly encouraging for a tie-up between the two companies. The ultimate would be for CQCL to be injected here, as a type of sub-RTO (reverse takeover) - i.e. a minority of shares issued, rather than a majority. Fingers crossed for news on that front soon.

Ilyas Khan has now relatively recently bought 21.8 million TGL shares (i.e. all of the 18,250,000 he sold, plus 3.55 million extra): 1. Subscribed for 3,400,000 shares: 06/11/2014 11:50 UKREG Touchstone Gold Limited Holding(s) in Company http://uk.advfn.com/news/UKREG/2014/article/64310145 2. Bought 1,800,000 TGL shares in the market:: 10/11/2014 18:00 UKREG Touchstone Gold Limited Issue of Equity and Holdings in the Company http://uk.advfn.com/news/UKREG/2014/article/64355541 3. Bought 2,000,000 TGL shares in the market: 11/11/2014 16:35 UKREG Touchstone Gold Limited Holdings in the Company http://uk.advfn.com/news/UKREG/2014/article/64370274 4. Bought 3,500,000 TGL shares in the market: 24/11/2014 13:59 UKREG Touchstone Gold Limited Holding(s) in Company http://uk.advfn.com/news/UKREG/2014/article/64539370 5. Bought 4,850,000 TGL shares in the market: 08/01/2015 14:38 UKREG Touchstone Gold Limited Holding(s) in Company http://uk.advfn.com/news/UKREG/2015/article/65031990 6. Subscribed for 6,250,000 TGL shares: 03/03/2015 17:45 UKREG Touchstone Gold Limited Holding(s) in Company http://uk.advfn.com/news/UKREG/2015/article/65705414 Since the start of 2014 Ilyas Khan has actually increased his holding of TGL shares by over thirty two million: 32,720,276 to be precise. In addition, I.K. may also have subscribed for TGL consolidated loan notes, which would have increased his investment into TGL since the start of last year still further.

Early April will mark the one year anniversary since TGL's final collapse to near the 0.3p level, at its final results. According to an article on http://www.eurosharelab.com/ entitled "Profit warnings: Numbers, Time periods and What you can do?", this one year period is very significant. Here is an extract: "But the study also found that on average about a year after the profit warning stock prices start recovering and goes on to do extremely well, outperforming the market 22,4% over the next year. James argues that this may be another good time to implement a rule to buy companies that issued a profit warning one year after the warning date. But after a year of the stock price drifting lower you may find it very difficult to convince yourself to buy the company again. Especially if the share price, on average, lost 41% from 6 months before the profit warning to one year afterwards." http://www.eurosharelab.com/newsletter-archive/473-profit-warnings-numbers-time-periods-and-what-you-can-do Psychologically, TGL investors may have suffered from a type of 'trauma' through the events experienced, and it takes time to recover from that. But a year should be long enough. And it should now just take a spark to trigger a sustained share price rerating upwards. Especially as Ilyas Khan has now rebought his full TGL holding, with millions more on top of that, and Richard Almedia was awarded share options earlier this week, so there should be no reason to 'keep the brakes on'. Coincidentally, the first quarter update with full year outlook for GOS Systems is due at about the time of this one year anniversary ...

KEY ATTRIBUTES OF TOUCHSTONE-GOS: 1. Homeland security demand is growing strongly. - Money is pouring in for GOS's essential services. - GOS's business is growing strongly. 2. GOS's other business economics are very positive: - Recurring revenues. - High-margins. - Stiff barriers to entry. 3. Management with proven track-record of achieving success. 4. Multi-million pound turnover, profitable. 5. Cash-rich. 6. Valuable patented intellectual property. 7. Further acquisitions expected. 8. Blue-sky quantum computing angle. 9. Lowly valuation (cap. £2.51M.: 0.415p x 605,982,800 shares in issue), but potential for re-rating to sky-high tech rating. 10. Chart in strategic uptrend over ten months, & poised just above strong 0.4p support level. The icing on the cake is that there has been massive insider buying by Ilyas Khan. TGL has multiple potential positive near-term share price catalysts, including a March trading update.

Neil, It's funny how people start turning negative when the share price is cheaper, when that is often the time to be more positive! Were're onto a great thing here, and we have been TOLD that GOS is going great. Not in the future, but NOW!!

Bampster, Yes, the placees might have wanted to buy in (more) ahead of forthcoming good news, to get in cheaper, but that doesn't mean that they are just in for a quick turn. 125 million shares were issued in the placing, and that sort of volume cannot be traded easily. And neither of the two big institutional shareholders who came on board in April at 0.275p have sold over the last ten months. I would think that the vast majority at least of the placees are in for the long-term, as they will know how good this should be. You, however, are sounding like YOU want to trade out (some) on good news!

These two ADVFN posts by KiwiMonk a couple of weeks ago give a good indication of the potential GOS Systems profit and valuation a year from now: KiwiMonk 12 Feb'15 - 08:35 - 4237 of 4409 7 0 "there's a few of them. stig is the best, everything he deramps goes on to multibag. kibo from 1.5p to 8p is a recent deramp hah. Valued at £30m on £3m+ of revenues in 2013 - what price in 2015 with Security market the hottest area to invest in. With a good strategy, £50m wouldn't be out of the realms of possibility with Worldwide Government and Multi national contracts. Bit of PR and 5p won't be far off. NAI KM" KiwiMonk 12 Feb'15 - 09:20 - 4238 of 4409 10 0 "edit: - £3.5m & a 10% net profit margin. Now with Reduced cost base and fully re-structured i.e NO DEBT! What profit margin now. Shall we be daring and say 20% NPM. = £700k pa See how quickly these numbers can be pushed up now that GOS is a financial New Entity. Raise the Revenues to a Conservative Run Rate of £7m looking out a year £1.4m profit. a Forward p/e of 20 gives a Mk Cap of £28m The City were valuing this @ £30m. They obviously had a higher growth rate in mind. Whichever way you look at it. It's current £1.9m valuation is far too cheap. IMHO. KM" http://uk.advfn.com/cmn/fbb/thread.php3?id=32338320&from=4237

Bampster, Remember that Tom Winnifrith said that the placing would be at 0.1p or less. And I shouldn't think that the placees are in for a quick turn. Some retail investors may be encouraged to take profits on the next rise by the pattern of spikes and retrenchments, but one day that pattern will, and it's the buy-&-hold investors who will be laughing. The main thing holding the share price back is lack of explicit visibility re. the full year result for 2015 onwards, as opposed to what we can implicitly deduce. But the March trading statement should help to address that.

23/02/2015 15:37 RNSNON Touchstone Gold Limited Jamie Ridealgh Appointed to Executive Team "Jamie Ridealgh Appointed to Executive Team Former Western Canadian Director of Operations at G4S Secure Solutions brings world-class operational security and commercial experience to Touchstone London, 23 February 2015 - Touchstone (AIM: TGL), the AIM listed investment company today announces that its wholly owned subsidiary TGL Services which acquired GOS Systems ("GOS") in late 2014, has appointed Mr Jamie Ridealgh as Chief Executive Officer. In his role, Jamie will lead the executive team, and the operations, sales, and product development teams. Jamie brings over 15 years of operational security experience, with a track record in the military, governmental, and commercial sectors across the world. ..." http://uk.advfn.com/news/RNSNON/2015/article/65590566 "G4S is Canada's leading provider of security solutions G4S works to ensure the safety and security of millions of people worldwide. As Canada’s leading provider of security solutions, we offer a unique combination of services including risk assessments, security personnel, security technologies, screening services and cash management solutions. G4S employs thousands of Canadians and operates in offices across the country. ... " http://www.g4s.ca/en-CA/Who%20we%20are/ Jamie Ridealgh presumably sees moving to TGL as offering something more, which gives an indication of the quite massive potential here. His North American background could also be very helpful to any GOS Systems expansion 'across the pond'. The CEO of GOS Systems, Steve Berry, seems to be staying on: http://www.gos-systems.com/about-us/ And SB is still shown as chairman of TGL's company Smart Desk Systems: http://www.smartdesksystems.com/About_our_team.aspx So why does TGL need another CEO, to run TGL Services, as an 'umbrella' over GOS & SDS? It suggests that more acquisitions are coming, to help justify this role. Expect news in the short-term.

Bampster, TGL have made a few announcements since the GOS acquisition making it clear that business is booming. And we know that a trading update will be given next month. In addition, we also know that they've been looking at acquisitions since last April, and that one may be made imminently. So I don't think that the placees are benefitting from knowing about good things that the rest of us don't. And as the level of dilution from Friday's placing wasn't excessive, I have no real problem with the company not waiting. A lower placing price can actually be beneficial, if it stimulates the placees to 'average up' on a successful investment. And if it means that IK has more shares in TGL than otherwise, then it may increase the chances of CQCL being injected here.

20/02/2015 07:00 UKREG Touchstone Gold Limited Issue of Equity "London, 20 February 2015 - Touchstone (AIM:TGL), the AIM listed investment company today announces that it has placed 125,000,000 common shares of no par value in the Company (the "Placing Shares") at 0.40 pence per share with a number of existing and new investors to raise GBP500,000 (the "Placing"). The Placing has been undertaken by Peterhouse Corporate Finance...." http://uk.advfn.com/news/UKREG/2015/article/65561146 The trend in the TGL placing prices is going UP: 0.275p last April (shell refinancing), 0.38p last October (GOS Systems acquisition), and 0.4p now. And look what happened after the last two placings: they marked the bottom of a trough, and preceeded a share price doubling/trebling. My feeling (a tad cynically perhaps) is that a major purpose of this placing is to allow insiders to buy in ahead of the March trading update, and the next acquisition. Ilyas Khan in particular will have wanted to rebuy his full holding at less than the price he sold for, and I would imagine that he has now done that. I would hope therefore that this now marks the end of yo yoing troughs and spikes in the 0.4p-1p range, and that TGL can now start a relatively steady and SUSTAINED rise.

20/02/2015 07:00 UKREG Touchstone Gold Limited Issue of Equity "London, 20 February 2015 - Touchstone (AIM:TGL), the AIM listed investment company today announces that it has placed 125,000,000 common shares of no par value in the Company (the "Placing Shares") at 0.40 pence per share with a number of existing and new investors to raise GBP500,000 (the "Placing"). The Placing has been undertaken by Peterhouse Corporate Finance...." http://uk.advfn.com/news/UKREG/2015/article/65561146 Some key points and observations from today's RNS: 1. "The proceeds of the Placing will fund the continued growth and development of portfolio company GOS Systems ("GOS") and will assist GOS with accelerated product development and with expanding international sales channels that are showing positive potential." I.E. THE FUNDS ARE BEING USED FOR ACCELERATED EXPANSION, WITH INTERNATIONAL INTEREST GROWING. 2. ""As we now know, GOS has emerged from administration much better than we could have hoped for and as a result, we are pleased to confirm that not only have existing customers remained with GOS Systems, but that GOS has added new customers both in the United Kingdom and also overseas...." EXPECTATIONS AT THE 4TH. NOVEMBER ACQUISITION OF GOS SYSTEMS HAVE BEEN GREATLY EXCEEDED, & NEW INTERNATIONAL BUSINESS HAS ALREADY BEEN WON. 3. " ... There is an established customer base, for whom GOS' products provide essential services. ... " THIS IS THE QUISSENTIAL NON-DISCRETIONARY BUSINESS: THE RISKS TO LIFE AND PROPERTY BEING COMBATTED ARE JUST VAST (THE POTENTIAL ECONOMIC HIT FROM A MAJOR TERROR ATTACK SCARING PEOPLE AWAY FROM MALLS & PUBLIC TRANSPORT COULD BE MANY BILLIONS). TGL now looks like a quite compelling buy at just 0.425p. No need to post to much, as the coming RNSes and s.p. movement should do all the talking necessary. Just kick back and enjoy the ride.

A strange thing to post a few minutes after the share price rose from 0.45p to 0.475p. The support at about 0.4p looks rock solid.