Member Info for Hedgehog100

"GOS does not own this patent." I don't agree. And I repeat: why would TGL be renewing the patent if they didn't own it? The fact that it's not registered in the name of GOS Systems does not mean that it is not owned by a company that they do own. You're suggesting that TGL are committing a massive fraud, and that isn't plausible. P.S. I recommended your Thu 22:10 post (i.e. yesterday) by mistake, when I was considering reporting it.

From page 9 of GOS Systems' 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. "THE TIMES Tapping into the market for security July 15 2013 Nic Fildes ... The company has swept up smaller players with great technology but low ambitions and will add Deltenna, a mobile technology specialist, using the funds it raises from the float in a £5 million deal. ..." "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...." http://waterbridgecapital.com/gos-systems-intention-to-float-on-aim-gets-international-coverage/

From the November 2014 investor presentation of GOS Systems: "Global market has grown rapidly in recent years, and is estimated to grow by 7 per cent. per annum from 2012 to 2017 to US$280 billion in 2018 (Visiongain, 2012) Intelligence Gathering • DIAL, a family of products of bespoke hardware and software systems for mobile phone identity (IMSI/IMEI) detection for target identification and is offered typically as a complete solution around circa £100,000 • The technology can also be adapted for e-borders monitoring and cellular explosive ordnance trigger and ‘bug’ detection • Cellular eavesdropping ‘bugs’ are by far the most prevalent devices used for illegal intelligence gathering and a high value product 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" Recurring revenues!

"Trevor confirmed the Patent Number was GB2487869 and it was renewed in November by TGL." Why would TGL be renewing the patent if they didn't own it? The obvious conclusion is the TGL (via GOS Systems) owns Inpro. The technology would have been patented some time ago. As I've said before, GOS systems was formed from three acquisitions: " ...However, despite the lack of direction, these smaller vendors often have rich IP and have formed the basis of GOS as it stands today, having acquired three businesses (Aappro Ltd, Golden Orb Networks, Spectronic Systems) to create the company...." http://waterbridgecapital.com/gos-systems-intention-to-float-on-aim-gets-international-coverage/ Those companies could of course have owned their own companies, which would be normal practice. In addition, your complaints are contradictory: If the technology is nothing special, and the patent is unneeded, then why would TGL need it, and why would anyone else want to license it? A patent means that the technology concerned cannot be copied. And even if it looks simple, it may still have taken a lot of time and investment to develop it. After all, Dyson's 'cyclone' vacuum cleaner was a simple idea. Also remember that: 1. GOS has 13 patent families across the Group. 2. It's not just about the technology, it's about having the skilled staff to effectively implement it. 3. GOS Systems was previously planning to acquire Deltenna, which would supplement its capabilities, and this acquisition may well be one of the ones that TGL has been looking at.

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. ..." http://www.standard.co.uk/news/london/lee-rigby-report-lets-kill-a-soldier-michael-adebowale-woolwich-murder-mi5-errors-9881657.html I predicted then that other countries would follow suit: Hedgehog100 - 27 Nov '14 "...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...."

"21 January 2015 Last updated at 15:52 Paris attacks: France to recruit more police agents Hundreds 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, Paris The 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. ... " http://www.bbc.co.uk/news/world-europe-30914468

"Forgot to mention,he said the plan was now to build on the acquisition of GOS by growing that business and bringing in further businesses with similar potential." Thanks Bampster - I'm glad you remembered that part! Further businessES: i.e. plural, so not just one more then. And with similar potential to GOS Systems. Well, bearing in mind that the potential of GOS Systems is very big, considering that it was planning to IPO in 2013 with a market cap. of £s tens of millions, then I can see why Mr. Wells sounds upbeat ... and it can take a lot to have that effect on an accountant! When I'm talking to companies, I place a lot of store not just in what they say, but also how they say it, as they're restricted in what they can reveal. I.e. upbeat or downbeat, as well as reading between the lines. And your news today does sound very exciting.

Thanks Bampster, that's very helpful.

TGL is a fairly unique RTO (reverse takeover) play at the moment, at 0.725p: it is no longer a shell since its acquisition of GOS Systems last Autumn, which underpins the company's value, but it still has the upside of a RTO in addition to that, which it has been actively pursuing since April (news expected imminently). Reading the brand new presentation for GOS Systems, one can't help but be struck by the sheer class and quality of this company, and its quite stunning value at the current lowly market cap. It seems to have everything: huge growth market, essential services, recurring revenues, high barriers to entry, high margins, and a hugely impressive management team. The company has invested millions of pounds on R&D to develop its tech products, and those alone should help cover the current market cap. of about £3.5M. at 0.725p. GOS Systems January 2015 investor presentation: http://www.touchstonegold.com/s/Presentations.asp Added to the fact that TGL recently announced that the company's founder, wealthy financier Ilyas Khan, has just bought a further 5,000,000 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 Following other recent purchases he has made since late October, this makes 15.7 million TGL shares that he has bought recently.

vfo21 - Sat 22:54 “One do not see that often to have a company's website presenting a team including postgraduate students... Usually, you have the chairman, CEO, managing director + 1 or 2 more senior blokes or other big guns even though there is a 50-100 people team behind them.” MrTGL - Sat 01:02 “Cambridge Quantum are exactly like you suggest and the numbers quoted for investment I saw last year just to carry on with the research was vast sums of money, huge amounts.” The above two points seem to be somewhat contradictory: using students would be cheap! And MrTGL's claim is completely unsourced. Here are a few observations of my own about the team at CQCL: 1. It is hugely impressive: the level of talent and achievements assembled here is quite extraordinary, and perfectly qualified for the field of quantum computing. 2. None of the team is an undergraduate, or a taught postgraduate. Andrew Simmons is completing his PhD in quantum technologies from Imperial College London (i.e. a research student), and he already has two degrees. 3. With just ten people in total it is nice and tight: focused, low-cost, and with the brightest and best staff only. http://www.cambridgequantum.com/index.php?page=team

Sausagedog, I'm glad you said that, not me!! I have to admit that I have a real problem with this Vfo21 comment: vfo21 - 7 Jan '15 "hedgehog, in principle I agree with TW. He should not have a position in TGL (as said on shareprophets web). I recall when TW mentioned TGL in Q4 of 2014 and I distantly recall that he was right what he presented there." Because in decades of investing, I don't recall a case where someone was shown to be so dramatically wrong as TW on TGL, and so quickly. TW started in latter October by basing a bear case against TGL on the following: 1. Saying that TGL must be a bad investment because Ilyas Khan had been selling shares, and suggesting that I.K. would sell his entire holding. 2. Dismissing TGL as a 'lifestyle shell', i.e. a vehicle for directors etc. to milk, rather than conducting a deal. Instead of which, Ilyas Khan has since recently bought back 15.7 million TGL shares, in five separate tranches, starting on 31st. October (announced on 6th. November). And on 4th. November TGL completed a substantial transaction just a few months after becoming an investment company, and one of the directors has since resigned (with two new directors coming on board). Compare that to a shell like SRO, which has gone years without a deal. TGL was the very anthesisis of a 'lifestyle shell'! In addition, the appearance of Vfo21 and MrTGL at the same time, with the latter supporting the former, seems very coincidental, especially considering the latter's lack of posting history (profile created 15th. January): "Member Info for MrTGL Member Since: Thu, 15th Jan 2015 Number of Share Chat Posts (all time): 4 Number of Share Chat Posts (last 30 days): 4 Last Posted: Sun 20:09"

And an 18.1.15 post from the TOUCHSTONE GOLD (LSE:TGL) board on iii: "Sun 13:49 Technicals sharksy1 1 UP 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 !" http://www.iii.co.uk/investment/detail/?rec=11515584&display=discussion&code=cotn:TGL.L

vfo21 Tue 23:48 "I do not buy their claim from November's 14' presentation." Why not, Vfo21? Providing secure cellular communications seems to me to be something that would be very hard to do, bearing in mind their nature. And to lie in a presentation like this would be fraud. Hardly likely, especially as people familiar with this management know that they are straight as a die. As regards 'competitors': "homeland security" encompasses many activities, among which secure cellular communications is a niche. From Wikipedia "The scope of homeland security includes: Emergency preparedness and response (for both terrorism and natural disasters), including volunteer medical, police, emergency management, and fire personnel; Domestic and International intelligence activities, largely today within the FBI; Critical infrastructure and perimeter protection; Investigation of people making and distributing child pornography; Border security, including both land, maritime and country borders; Transportation security, including aviation and maritime transportation; Biodefense; Detection of radioactive and radiological materials; Research on next-generation security technologies." http://en.wikipedia.org/wiki/Homeland_security

vfo21 Mon 21:25 "... (not only because there is a stiff competition). ... I would challenge them whether they can sell a single service or product in the US (an extremely important, high volume/value, security market)." Vfo21, All the information suggests that there is limited competition for GOS's contracts. Remember this part from the November 2014 presentation: "• Cellular is the 'hard to do' piece • Significant technology barriers to entry and hence few market players" And with regard to the US, remember that as a relatively small company GOS doesn't want to spread itself too thin. I'm sure there is plenty of business in Europe and Asia for GOS, and that it is well-placed to compete against the Americans here. From the January 2015 presentation: "Established customer base • Positioned as a ‘not-US’ supplier • Experienced international sales network" http://www.touchstonegold.com/i/pdf/presentation/GOS-Presentation-jan72015.pdf

vfo21 Mon 21:25 "By not announcing individual deals this will not aid visibility." Vfo21, I think that you're misunderstanding this comment from the 15th. December RNS: "It will not be our policy to announce contracts and business development that are considered to be in the ordinary course of activities." Because it also said: "A further update on the business plan and revenues beyond the next few months will be provided at the end of Q1 2015." I.e. it appears that smaller contract wins will be announced quarterly, but extra large ones will be announced when they are won. This seems to me to be a sensible approach. And any acquisition would certainly be announced.

vfo21 Sun 17:04 "I am not here as an investor or future investor." vfo21 Mon 22:05 "I will be happy to be invested if I learn more and decide that this is a worthy investment." Vfo21, I'm glad we're helping to change your mind!! GOS Systems was built up through three acquisitions: http://waterbridgecapital.com/gos-systems-intention-to-float-on-aim-gets-international-coverage/ So perhaps the patents are registered in the names of the companies acquired. All the information from TGL suggests that GOS (including its subsidiaries) OWN the patents, but I compliment you on the thoroughness of your research. I would thoroughly recommend that you contact TGL directly with your query: they are very friendly and accommodating, and I'm sure would be delighted to help.

Note that the 15th. December RNS also made this revealing comment: "It will not be our policy to announce contracts and business development that are considered to be in the ordinary course of activities." I.e. GOS regularly winning new business is expected to be so normal that TGL won't even bother announcing it separately! Instead, it looks like they will be revealed together quarterly: "A further update on the business plan and revenues beyond the next few months will be provided at the end of Q1 2015."

Hedgehog100 - 16 Dec '14 "Falanx looks to be more consultancy and cyber-focussed than GOS Systems, without GOS's cellular capabilities, and lacking GOS's range of intellectual property. This probably means that FLX has lower barriers to entry and margins than GOS, and a lower proportion of 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"

Vfo21, Ratings in the software sector are higher than in the hardware sector, so the fact that CQCL operates in the former rather than the latter is an advantage. With respect to quantum dots: you appear to be trying to split hairs and score points. I didn't say that NANO was a quantum computing company: I used the term "quantum field" in a broad sense.

I admit that we're a long way from quantum computing becoming mainstream, but 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 CQCL 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. http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/12166699.html 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. http://www.ft.com/cms/s/0/8b597142-543c-11e4-84c6-00144feab7de.html#axzz3PBwzqzEE NANO (Nanoco) is another listed uni. spinout (from Manchester Uni.), and has a current market cap. of £226.8M. at 104.75p. 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.