Member Info for Hedgehog100

Neil, You are considering selling just because the share price is falling: no other reason. I.e. selling because it is cheaper. Technical stop-losses may have their uses, but in general it's better to sell because the fundamentals are worsening, not because the sky is falling. The respected newsletter Techinvest has said that stop-losses are best suited for protecting huge gains, and less suited for early-stage recovery situations, where timing is virtually impossible to predict, and rigid application of stop-losses can often result in premature and unnecessary sales. And in fact TechInvest has currently suspended its use of stop-losses entirely: "Stop-Losses in the Newsletter The introduction to the stop-loss summary table in each issue of the newsletter advises subscribers to use the suggested stop-loss limits as a guide. It goes on to state that “rigid application of the limits is less appropriate in the event of a major market correction or in very volatile conditions”. In view of the unprecedented volatility of recent markets, we have decided to suspend for the time being the recommended limits with effect from the close of trading on August 15. By that stage, since the last issue of the newsletter stop-losses had been triggered in ITIS, Morse, OCZ, Tanfield and Thus. This is not the first time we have suspended the use of stop-losses through the years. Once more normal conditions return we will, as on previous occasions, start using them again where appropriate." http://www.techinvest.ie/stop-losses-in-the-newsletter/

Thanks Chesy. Here is my ADVFN reply to Peter: Hedgehog 100 10 Feb'15 - 18:54 - 129 of 129 0 0 edit "Peter, Maybe you were the one ramping TGL from 25p, as you seem to be obsessed with that happening. I certainly wasn't. And I haven't said that I wouldn't be interested in buying PPG at a (much) lower level: most things have a price. If it was at a market cap. of £2M., it would currently be worth a speculative medium-term punt of say £1K., in my opinion. But it's unlikely to reach that level in the short-term."

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. http://www.gos-systems.com/ From page 9 of GOS's November 2014 investor presentation (see ADVFN post by someuwin 18 Dec'14 - 11:05 - 2882 of 4196 2 0): "• Cellular is the 'hard to do' piece • Significant technology barriers to entry and hence few market players" http://uk.advfn.com/cmn/fbb/thread.php3?id=32338320&from=2882 GOS 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).

DGB (Digital Barriers) is one of the most comparable (although still different) LSE companies to GOS Systems: "MEGABUYTE GOS Systems to list on AIM 15 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.... " http://waterbridgecapital.com/gos-systems-intention-to-float-on-aim-gets-international-coverage/ Apparently 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" http://uk.advfn.com/cmn/fbb/thread.php3?id=21942918 And incidentally has previously been tipped by TechInvest.

From the SCSW website: "Digital Barriers - Building world class IP in defence sectorFebruary 2015 Advance 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 ..." http://www.scsw.co.uk/searchresults.php?textfield=DGB&ftype= All of those three themes identified by SCSW also apply very strongly to GOS Systems, but with GOS's owner TGL at a small fraction of the market cap. of DGB. Digital Barriers (DGB) market cap. £45.2M. at 53.5p Touchstone (TGL) market cap. £2.52m. at 0.525p

Golddust, The forecasts come from IXI's broker Daniel Stewart. They are not computer-generated: they come from speaking to the company about its prospects. Obviously though they are just forecasts, and can be upgraded (or downgraded). But a forecast loss of £2M. for the current year puts me off, and I would be unlikely to buy unless it is upgraded.

Here are the IXI forecasts from Digital Look: Forecast Year Ending Revenue (£m) Pre-tax (£m) EPS P/E PEG EPS Grth. Div Yield 2014-09-30 3.40 -2.20 -14.20p 0.0 n/a 0% 0.00p 0.0% 2015-09-30 3.00 -2.00 -12.40p 0.0 n/a 0% 0.00p 0.0% http://www.digitallook.com/equity/Ixico And from Share.com: Forecasts Year Ending Profit (£m) EPS P/E PEG EPS Grth. Div Yield 30-Sep-15 (1.87) (12.40)p n/a n/a n/a n/a 0.0% https://www.share.com/find-investments/advanced-finder/company-overview/ixico/financials/forecasts/756/ The forecast for the results later this month is a loss of £2.2M. And then revenue is forecast to fall in the current year, with another massive loss. Suggestion of possible profit for the current year looks way off the mark, and with losses of about £2M. p.a. cash will not last too long unless something changes very dramatically.

30p by mid 2017 is possible, and I have set out why previously on ADVFN. In my opinion it's 'fill yer boots time'. A 'one-off, 'once-in- a-lifetime' opportunity to acquire a great stake in a quality growth company at a giveaway price.

"There is no bottom for this" Look at the chart, Neil. There's strong support at 0.4p, and we're at 0.475p now, so I think that the potential downside from here is very limited. I suspect that there's a lot of people watching this, looking to time an entry (perhaps a re-entry), or top-up. If they all try to buy at once, I think we know what will happen.

Neil, Sorry if you're (temporarily) down here. I would note though that you're falling prey to the classic investor swings in psychology. When the price is soaring, everyone thinks the company is great. Then when it's falling, everyone's filled with doom & gloom. But the reality is, the only thing that's really changed is that the company is now better value than ever. Keep the faith, and I'm sure that you confidence will be richly rewarded. This company is massively undervalued, which is why Ilyas Khan has been buying in big recently. An investor as shrewd as him would not be doing that otherwise.

I'm expecting the next trading update for GOS Systems at the end of March: 15/12/2014 07:00 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. ... " http://uk.advfn.com/news/RNSNON/2014/article/64790828 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." http://www.gos-systems.com/sectors/ "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." http://www.investegate.co.uk/gos-systems-plc/rns/intention-to-float/201307150700092722J 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.

No mate, it wasn't me.

26/01/2015 07:00 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. ... " http://www.advfn.com/news_Touchstone-Gold-Limited-GOS-Systems-to-Upgrade-Net_65223469.html When 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: "MEGABUYTE GOS Systems to list on AIM 15 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. ... " http://waterbridgecapital.com/gos-systems-intention-to-float-on-aim-gets-international-coverage/ Now 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.

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.

"26/01/2015 07:00 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: 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 information Published on 14/10/2013 CESG, 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...." http://www.cesg.gov.uk/News/Pages/new-platform-security-guidance.aspx

31/10/2014 17:41 UKREG Touchstone Gold Limited Directorate change and Placing " ... The Company would like to clarify it has no intention of a transaction involving Cambridge Quantum Computing Limited for which company Arthur Gibson is Special Advisor to the Board. The Company continues to evaluate opportunities in a number of sectors including the applications of quantum computing technologies. ... " http://uk.advfn.com/news/UKREG/2014/article/64248311 That 31st. October 2014 TGL statement was a time-limited reference: i.e. at that point TGL had no intention of a CQCL transaction immediately; on then on 4th. November TGL acquired GOS Systems. Other communications from TGL have been more equivocal regarding CQCL's intentions, indicating that CQCL needed to advance a bit more first, and then decide upon its route to market. Bearing in mind GOS's very unfortunate experience with the IPO (initial public offering) route, then the RTO (reverse takeover) or similar (minority injection) route for CQCL will surely make sense to Stanhill, especially with TGL available as such a natural home. TGL has been evaluating acquisitions and new technologies for some time now. And that includes quantum computing technologies, which makes perfect sense. 04/11/2014 08:02 UKREG Touchstone Gold Limited Acquisition " ... "We continue to review a number of other acquisition opportunities as we seek to fulfil the company's investing strategy and build on the unique platform created by GOS Systems. In addition we will continue to evaluate further opportunities and take advantage of the expertise now possessed by the company with the recent addition of Professor Gibson to the board and with a particular emphasis on the way in which new technologies will have an impact on areas such as encryption and secure communications." Professor Arthur Gibson, Director of Touchstone, added, "Communications security and surveillance is a complex area where service delivery needs to be aligned with the most advanced technology. I am particularly focused on the related areas of cryptography, and GOS Systems provides Touchstone with the ability to build a dialogue with agencies for whom new technologies, as they emerge, will need to be adopted in order to maintain effectiveness." ... " http://uk.advfn.com/news/UKREG/2014/article/64273539

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: Cryptography Financial Services Medicine and Biotech (including DNA mapping)" http://cambridgequantum.com/ "Three Questions with the CEO of D-Wave The CEO of quantum computing startup D-Wave says its machines are helping companies analyze Wall Street data and search for new cancer drugs." http://www.technologyreview.com/news/530986/three-questions-with-the-ceo-of-d-wave/ And CQCL have a business development officer in North America to develop the company's business there, which is where D-Wave is based: "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. By 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." http://cambridgequantum.com/index.php?page=team

Steve Berry looks like a hugely impressive and capable individual. And SDS's client list is stellar. "The Team At The Top Steve Berry – Executive Chairman Steve’s business career spans 25 years, and includes starting and floating several companies. Through his investment portfolio “Waterbridge Capital”, he holds several non-executive directorships, including 1Spatial Ltd, a geographical information technology company. Steve is also a founding partner of CTL Europe, an outsource customer services operation and call centre. He launched SmartDesk Systems in 2007 in response to the opportunity he saw for voice technology applications for customer support organizations like CTL. Steve received his MBA in finance from Harvard School of Business and a BSc in Economics from the Wharton School, University of Pennsylvania." http://www.smartdesksystems.com/About_our_team.aspx "Our Backing We are a technology company. We’re efficient, proactive and responsive. With our quest for applicable innovation, and the challenges of our clients, we need to be. Whilst we are a dynamic, middleweight organisation, we have heavyweight credentials. We are backed by Waterbridge Capital, a London-based private equity holding company with international interests in the areas of financial services, IT & telecommunications, security and outsourcing. Still First, a private limited and holding company, is another backer sharing our philosophy of innovation, partnership and endeavour to drive a winning culture through the whole business. As a tier-1 network operator, we presently support over 25 government agencies. Amongst our current clients, we are also proud to count The Post Office, Eurostar, Argos, 3663, Virgin Media and SightSavers." http://www.smartdesksystems.com/Our_backing.aspx Other SDS cuctomers include: Boden Home Retail Group South Staffs water CTL Europe http://www.smartdesksystems.com/Clients.aspx

ILYAS KHAN & STANHILL CAPITAL: THE SPEED KINGS Three 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 07:00 UKREG Beacon Hill Resources plc Intention to Delist from the ASX http://uk.advfn.com/news/UKREG/2013/article/59272261 23/01/2014 07:00 UKREG Beacon Hill Resources plc Voluntary Delisting from the ASX http://uk.advfn.com/news/UKREG/2014/article/60763356 2. 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. http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/12166699.html Accelerated development is clearly their modus operandi: dynamic action, allied to a shrewd business sensibility.

Thanks rtf777, Excellent work! It fully supports the obvious conclusion that TGL (via GOS Systems) owns Inpro. Vfo21, Re. your claim: "I can comfortably back-up the contents of my posts." No you can't, and you haven't done so. You are posting implausible speculation as fact. TGL have stated clearly that they renewed the patent concerned: "Trevor confirmed the Patent Number was GB2487869 and it was renewed in November by TGL." Not a lease of the patent, but the patent itself.