Member Info for Hedgehog100

"C'mon people I know it is easy to get carried out by "Cambridge", "Quantum", "Gibson" ... " We're not being carried away by it, we're being legitimately impressed by it, which is different. And if we're impressed, then the City will be too. It's the combination of brilliant technical ability (Professor Arthur Gibson & co.) allied to shrewd business nous (Ilyas Khan & co.) which is so compelling here. 100-bagger Autonomy, another Cambridge Uni. software spinout, succeeded so well because it had a firm business focus, and that's precisely what CQCL has. CQCL has two employees focussed on business development. One is on a secondment from Stanhill Capital and the other located in USA. Check out this write-up on the latter: "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

Vfo21, "Why would Cambridge Quantum want GOS?" The real question is: why would CQCL want a public listing? Answers: to help its profile, business development, investment rating, and financing. Plus the bonus of perhaps being the world's first listed quantum computing company. "CQCL can be profitable but I would not at all fancy being in the position of a business developer justifying the quantum computing market to an investor." This supports the view that CQCL would seek a listing via an already listed company, rather than an IPO. And preferably one with other operational businesses at a more advanced stage (step in GOS Systems and Smart Desk Systems). If there is a placing to accompany a CQCL injection into TGL, then investors will be buying into THREE businesses: i.e. GOS, SDS, and CQCL. And these are very complementary, not just from a business activity viewpoint, but from an investment viewpoint too. GOS + SDS have the existing revenues and profit, whereas CQCL has the more 'blue sky' excitement of quantum computing. So combining these into one listed vehicle would be a stroke of genius. I've seen this sort of combination done elsewhere and the effect has been quite explosive, both in terms of attracting investors and the company's rating. It doesn't actually matter whether the subsidiary companies actually work together or not. Look at Halma (a thousand-bagger): "We are a market leader in specialist safety, health and environmental technologies." http://www.halma.com/ Essentially Halma is a large collection of separate but related businesses acquired over a lengthy period of time.

COMPANIES RELEVANT TO TGL: START-UPS, AND EX-ADMINISTRATION FLOATS 1. XIAOMI From "THE TIMES", Friday January 16 2015: "iPhone 6 rival you may Note — but not see Nic Fildes Last updated at 12:01AM, January 16 2015 "It’s the latest must-have smartphone to hit the market, but British users will probably never get their hands on one of the only phones to steal the iPhone’s thunder. The Xiaomi Mi Note is lighter, thinner and has a bigger screen than the supersized iPhone 6 Plus but it will be available only in China when it launches this month. It will soon hit the shelves in other markets, including India and Brazil, at a cost of less than £250. ... Founded in 2010, Xiaomi has earned itself the mantle of the biggest start-up in the world after a funding round valued it at $45 billion (£30 billion) last month. ... " <a href='http://www.thetimes.co.uk/tto/business/industries/technology/article4324914.ece' target='window'>http://www.thetimes.co.uk/tto/business/industries/technology/article4324914.ece</a> 2. GAME DIGITAL "By Ashley Armstrong, M&A Reporter 8:00PM GMT 03 Jan 2015 … The best performing float of the year was also one that came to the market with the most controversy. GAME Digital, which collapsed into administration just two years earlier, floated initially at the bottom of its price range due to investor nervousness, but since then it has quietly tracked higher and its shares are now almost 75pc higher than they were when listed in June. …" <a href='http://www.telegraph.co.uk/finance/markets/11322390/The-race-to-the-London-stock-market.html' target='window'>http://www.telegraph.co.uk/finance/markets/11322390/The-race-to-the-London-stock-market.html</a> Game Digital PLC (GMD) has a current market cap. of £425M., and it has been much higher. 3. BETTERWARE "... Andrew Cohen bought it from receivers in 1983 for £253,000 and moved it from Romford, Essex to Castle Vale, Birmingham.[2] It became a public company in 1986 and was one of the best performing shares on the stockmarket in the early 1990s when its share price rose from about 20p to more than 250p. Cohen sold his share of the company in 1997 by which time it was valued at £117 million.[3] ..." <a href='http://en.wikipedia.org/wiki/Betterware' target='window'>http://en.wikipedia.org/wiki/Betterware</a> BEARS BETTER BEWARE THIS POTENTIAL BETTERWARE!!!

MrTGL, Re. your comment: "Also the RNS stating we are not going to announce every deal we do ..." The RNS concerned was actually only talking about new contracts and business developments for GOS, not acquisitions by TGL: 15/12/2014 07:00 RNSNON Touchstone Gold Limited Update on Investee Company GOS Systems "...It will not be our policy to announce contracts and business development that are considered to be in the ordinary course of activities...." http://uk.advfn.com/news/RNSNON/2014/article/64790828 Any acquisitions by TGL will of course be announced. With regard to a RTO (reverse takeover): an acquisition for shares by TGL doesn't have to be given a majority of the expanded equity, it can be given a minority. Though then of course it won't be called a RTO, which will make it simpler (e.g. no suspension). With TGL's value increased by the acquisition of GOS + Smart Desk Systems, it's now more likely that an acquisition will be of this nature. Any acquisition by TGL will be a high-growth technology company: there's no way that Ilyas Khan would want to create a 'dog's dinner' of a company by bringing in oil assets here. Any oil bargains he buys will go elsewhere. Finally, re. your comments: "it was a painful blow to take, but facts are facts." "But it's just a small blip..." I find these very strange comments. Vfo21's speculation is just an opinion (one I disagree with) not a fact. TGL is the natural home for CQCL, and injecting it here makes perfect sense.

Many of TGL's recent announcements have been issued on a Monday: Monday 22/12/2014 14:08 UKREG Touchstone Gold Limited Clarificatory Announcement Monday 15/12/2014 07:00 RNSNON Touchstone Gold Limited Update on Investee Company GOS Systems Monday 08/12/2014 07:00 UKREG Touchstone Gold Limited Appointment of New Director Monday 24/11/2014 13:59 UKREG Touchstone Gold Limited Holding(s) in Company Monday 10/11/2014 18:00 UKREG Touchstone Gold Limited Issue of Equity and Holdings in the Company Monday 03/11/2014 07:02 UKREG Touchstone Gold Limited Update on Possible Investment Maybe because these hard-working City types are putting in 'extra' hours over the weekend? Even the two most recent announcements were made on the first two days after the Christmas period ended on twelfth day: 08/01/2015 14:38 UKREG Touchstone Gold Limited Holding(s) in Company 07/01/2015 07:00 RNSNON Touchstone Gold Limited GOS Systems Investor Presentation Could therefore tomorrow (Friday 16th.) be the last day to buy in before news?

carbuthen 15 Jan'15 - 08:23 - 3723 of 3770 6 0 "It's quite simple to do the valuation here. GOS was valued @ £30m last year. TGL now own GOS outright. TGL mk cap is>> under £3m. (this morning) Since mid last year, the world has plunged into RED ALERT warnings across Europe especially. The whole world is now ON ALERT - HIGH ALERT.>>> This is effectively giving GOS a Silver Bullet of Solutions to Governments and Large Institutions and Multi National Companies who NOW really DO need to increase spending whatever the cost on Fortifying their defenses. In step GOS Systems. SO if anyone is thinking £30m back then is still the same. Then think again and think at least double that figure. Business will be going GANGBUSTERS >> I don't particularly see the need to post, until there is something different to say. I think I've highlighted effectively why this will be in 'double figures' plus in the v near term. The quality of management is key, the solutions are key, they have it all. No advice, only opinion." drinkscotch 15 Jan'15 - 12:52 - 3745 of 3770 3 0 "Volume has increased markedly recently, 1p easily insight. Then we're off. speculation is, word is getting around some Tech funds who are wanting IN. Happy to hold for a 18 month view." http://uk.advfn.com/cmn/fbb/thread.php3?id=32338320

Hi Mr. TGL. 0.45p is a good average to have: it's about half my own average, but I believe that will look like a pittance in due course. Remember also that Mr. Khan's quantum computing article was about the same time as the new presentation on TGL's website. On 7th. January TGL announced that it had published a new GOS Systems investor presentation on its website: 07/01/2015 07:00 RNSNON Touchstone Gold Limited GOS Systems Investor Presentation http://uk.advfn.com/news/RNSNON/2015/article/65009075 Then the very next day, Ilyas Khan published his article entitled "2015 - the year of Quantum Computing", i.e. Jan 8, 2015: https://www.linkedin.com/pulse/2015-year-quantum-computing-ilyas-khan Was this just a coincidence, or are they perhaps linked in some way (and perhaps even a signal?). Investors could be being given the low-down on GOS Systems AND quantum computing.

Ilyas Khan published an article entitled "2015 - the year of Quantum Computing" on Jan 8, 2015: https://www.linkedin.com/pulse/2015-year-quantum-computing-ilyas-khan

Vfo21, There's a bit more detail here: "GOS Systems PLC Intention to Float RNS Number : 2722J GOS Systems PLC 15 July 2013" "· IPR and know-how GOS has 13 patent families across the Group, nine of which have at least one patent granted. These patents indicate the depth of know-how and experience in the field of wireless communications within the Group. While the patents are themselves valuable, it is the associated know-how of implementation built up by the key technical staff that is the real value and strength to the Group." http://www.investegate.co.uk/gos-systems-plc/rns/intention-to-float/201307150700092722J/

Before anyone considers taking TW's advice, they should read the following expose. There's a lot here, so here are just an extract: "To further lowlight his incredibly appalling record here are his predictions for 2013, quite astonishingly he managed to get 11 out of 11 wrong and they were mainly 50/50 calls. Just imagine how well your investments would be doing if you’d listerned to him at the end of 2012. 1 – EU governments will default on their debt They didn’t. 2 – The bond bubble will burst It didn’t 3 – Gold will trade between $1700 and $2000 It fell from $1600 to $1200 4 – Silver will do even better. It will trade at $35-$40. It fell from $30 to $19 5 – In Syria Assad will be replaced and oil will spike to $180 per barrel He wasn’t and oil traded steadily at around $110 6 – The EU will ditch the UK or some countries will split in two Wrong on both counts. 7 – The media bubble will burst It didn’t. 8 – The US balance will resemble Greece’s The USA was the first western economy to return to pre-crisis levels 9 – House prices will fall or tread water House prices accelerated and continue to do so 10 – Consumer spending will remain subdued A consumer led economic recovery gathered momentum. 11 – 2013 will be a bad year for equities – the FTSE will fall from 6000 to end the year at 5500 It rose throughout to 6800 Is Tom Winnifrith the biggest loser ever ? If you wish to contact us you can send a message through the about section at the top. Send your whole message and all the details through there, they don’t get published it’s just a way of contacting us. Everything is kept in complete confidence and anonymity. There are other ways to contact us which others know about. There is no copyright on this site but if possible please link directly to the site as it increases our search ratings." http://sharetipstersuncovered.wordpress.com/

We probably know more about GOS's current financial situation at the moment than with most listed companies: because we know that as at 4th. November it was entirely debt-free, and also has the £500K. of cash provided by TGL for GOS. And that GOS has recently been profitable but for its debt and increased investment ... debt which has now gone. In summary, TGL is cash-rich, it's new acquisition GOS Systems is profitable, and the acquisition RNS makes it very clear that finances are great.

Also compare GOS Systems to Falanx Group (FLX) in a related field of operation: Revenue of £4.436M. in the year ending 31.3.14 Market cap. £19.04M. at 36.5p http://uk.advfn.com/p.php?pid=quote&btn=s_ok&s_symbol_select=LSE%3ATGL&symbol=LSE%3AFLX&s_ok=OK&mid=1&period=5&dm=0 http://www.falanxgroup.com/ 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. http://www.gos-systems.com/ From page 9 of GOS's November 2014 investor presentation (see post by someuwin 18 Dec'14 - 11:05 - 2882 of 3556 2 0): "• Cellular is the 'hard to do' piece • Significant technology barriers to entry and hence few market players" GOS Systems is high growth and high margin, with recurring revenues, great intellectual property (13 families of patents), and providing essential services.

GOS Systems won £300K. of new contracts in just under one and a half months under TGL's ownership. 15/12/2014 07:00 RNSNON Touchstone Gold Limited Update on Investee Company GOS Systems http://uk.advfn.com/news/RNSNON/2014/article/64790828 If that rate of contract wins was kept up, it would equate to about £2.5M. of new contract wins p.a. Starting from a revenue base of a couple of million pounds or so p.a., that would equate to growth of over 100% p.a. And it could give GOS Systems annualised revenues of about £4.5M. p.a. by the latter part of this year. 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." Compare that to Tern's acquisition Cryptosoft, which has zero revenues.

Thanks Vfo21. The lion's share of GOS's debt was from aborted IPO costs, as revealed in this post from ADVFN: godolphin 26 Nov'14 - 11:49 - 2595 of 3553 2 0 "There's a "statement of administrators proposals" at companies house for Gos. Quite a lot in it. The business was valued and it seems they had two offers, one from an employee. The failed IPO costs are unimaginable (£1.8m)! lol. Only costs a quid." http://uk.advfn.com/cmn/fbb/thread.php3?id=32338320&from=2580 The rest probably stemmed from prior acquisitions and investment.

A few AIM IPOs were cancelled summer 2013 due to market conditions. GOS Systems doubtless intended to come back this year, but then the tech sector suffered a severe correction, and they were left stranded. Many IPOs have been pulled this Autumn in view of the market correction, including large and prestigious companies, so it's no surprise that GOS Systems wasn't able to arrange a last-minute IPO: that doesn't reflect upon its quality. And GOS won't have been helped by the level of the accumulated debt. Total debt must have been well over £2M. I would think, and possibly as high as £3M., from aborted IPO costs, and with some probably stemming from prior acquisitions and investment. GOS Systems provides essential services on an ongoing basis (recurring revenues), as opposed to on-off sales. And its technology is very 'sticky': i.e. once organisations have subscribed, they really do tend to stay with the provider, as long as the technology and the network are not disrupted. The administration has seen no impact upon GOS's clients, and the period of administration was negligible. GOS's customers will actually feel more confident about it now, because of it now being publicly listed, and being on a much firmer financial footing. I would add that GOS's debt of up to £3M. was a relative mountain for a company that size, and would have become increasingly difficult to service and refinance as the debt grew. So it's no surprise that GOS went into administration, and that was no reflection upon the quality of its business. But the good news is that with all that debt now stripped away by the administration, and the company instead benefiting from TGL's cash and public listing, GOS is now an ENTIRELY different prospect: the situation is a different as chalk and cheese. And not just financially: because management and staff time and stress in dealing with all that debt, and trying to float, is now removed, so GOS's people can concentrate on what they do best: which is growing the company. This is a sector that is ripe for consolidation, and a UK-led leader in the field has yet to emerge.

Vfo21, TW has now attacked TGL on SIX separate occasion since late last October. A brief summary of TW's main TGL-bashing record: He started by saying that TGL must be a bad investment because Ilyas Khan had been selling shares, and suggested that I.K. would sell his entire holding. Instead of which, Ilyas Khan has since recently bought back 15.7 million TGL shares, in five separate trnaches. And he dismissed TGL as a 'lifestyle shell', i.e. a vehicle for directors etc. to milk, rather than conducting a deal. Almost immediately TGL then completed a substantial transaction just a few months after becoming an investment company, and one of the directors has 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'! After TGL acquired GOS Systems, TW then argued for two directly contradictory angles: 1. It was a bad investment because it needed so much money. 2. It was such a good investment that the administrator had acted improperly by selling it so cheaply! And TW has also accused TGL of greed and lies, when there has been no greed, and no lies. (At least not from TGL.) "Greed": what company can run without directors? Ilyas Khan has taken advantage of his excellent network of contacts to get some excellent people in, quickly, to run TGL and do an excellent job. What exactly is the problem with that? If they were really greedy then they wouldn't have pulled off a deal so fast, which was likely in due course to result in some of them at least stepping down as TGL moves from being a shell into an operational company. And so what if it pays a bit to Stanhill: how much does any company pay for rent etc.? The amount paid looks good value to me. "Lies": there's no reason to disbelieve the figures in TGL's RNS, which I'm sure have been carefully worked out, as I believe that the GOS deal had been brewing for months. GOS Systems isn't a company that was hemorrhaging vast amounts of cash: on the contrary, it had EBITDA of £0.3m in 2012, and was expecting to return to profitability the following year. Debt-free, the interest and loan amortisation parts of EBITDA will no longer weigh on cashflow, and tax will only be an issue if the company is profitable.

Ilyas Khan has now recently bought back 15.7 million TGL shares: 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 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 Since the start of 2014 Ilyas Khan has actually increased his holding of TGL shares by over twenty six million: 26,820,276 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.

RB-Heath, Traders can easily get caught out by try to trade a share that just keeps going up: e.g. Fitbug 50-bagging last Autumn to name a recent example. (They tend not to tell you about those though!) TGL has been working on its RTO since last April so news should be imminent, and if there is a brief suspension you could be locked out of the opportunity to buy back in advance. Why risk missing out on the really big money for a comparative pittance?

A RTO (reverse takeover) into TGL may or may not be accompanied by a placing, but either way it would be a very positive event. BOOM (formerly ONE) had a placing at 1.5p in mid March to accompany its RTO. 1.5p was the approximate share price at the time, having just doubled from 0.75p. And after a brief suspension, the shares then resumed trading at more than double that level. And within months BOOM has more than quadrupled from that elevated level, making it a 2014 20-bagger. Looking at GOS's updated investor presentation, and you can see that the City would be all over this if there is a placing, especially at the current lowly valuation. Chances are that it would be oversubscribed, which makes for a healthy share price, and vibrant demand afterwards. Personally I would see such a placing as a very positive event, and bringing on board some more new institutional investors will help to raise awareness of the company in the city afterwards. Any really big money though to accelerate expansion would probably only be raised later, at a much higher level, which is the usual pattern with RTOs.

" ... a possible placing ... " I think you could say that about the majority of shares on the stock exchange. I.e. a placing is POSSIBLE ... TW seems to have got just about everything else wrong about TGL, so I find it amazing that anyone is still listening to him! He's been thoroughly discredited in my opinion. He's now well under water with his TGL short, as are those fools who followed him!!