Member Info for Hedgehog100

"RNS Number : 3277Y Cambridge Quantum Computing Ltd 28 November 2014 ... Cambridge, 28 November 2014 - CQCL is pleased to confirm that Sir Nigel Broomfield KCMG has taken up the position of Chairman of the Board of Directors. Sir Nigel Broomfield commented: "The emergence of quantum computing as a reality in the coming years cannot be underestimated in terms of its impact on areas such as national security, secure communications, financial services and bio-technology. The contribution of new and innovative companies towards this important technology will be critical. I, and my colleagues at CQCL, think it is essential that British companies be at the forefront of these developments. I am therefore very pleased to take up this non-executive position at an important stage in the work of CQCL." ... " http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/12166699.html Interesting that the first two quantum computing areas mentioned by Sir Nigel are national security and secure communications: i.e. two areas that are absolutely key to the work of TGL's new acquisition GOS Systems.

A very useful post from ADVFN yesterday: godolphin 26 Nov'14 - 11:49 - 2595 of 2650 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=2595 Excellent work there by Godolphin. GOS Systems had to pay £400K. to the broker for their aborted 2013 IPO, but there must have been other costs as well. Then in 2014 they tried to come back again, but were scuppered again in bad market conditions, not 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., with some probably stemming from prior acquisitions and investment. That's 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. 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. The administration has been 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.

"... in the short term, the stock market behaves like a voting machine, but in the long term it acts like a weighing machine (i.e. its true value will in the long run be reflected in its stock price)." http://en.wikipedia.org/wiki/Benjamin_Graham "We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful." http://www.brainyquote.com/quotes/authors/w/warren_buffett.html

Our Prime Minister has just announced £130M. of additional funding for GOS's sector: "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 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. Talk about being in the right place at the right time. GOS's revenues are almost certain to soar in my opinion, and major new contract wins may be expected in the short-term, especially as GOS is now listed. GOS's track record of trust and reliability, allied to their impressive technology (13 families of patents), means that security agencies may have few, if any, other companies to turn for their work. The market hasn't yet picked up upon this quite explosive opportunity with TGL, but it will in due course, and the share price should explode upwards accordingly. Fair value must surely be upwards of a penny plus even before further developments. Anything less just looks so ludicrously undervalued. For GOS Systems alone, now it's debt-free, listed, and with cash backing, how can you possibly justify a valuation of less than two times revenues, minimum?

100%, Lambpostie. Without the debts, of course, which was stripped away by the administration. TGL now owns it, lock, stock, and barrel. And GOS Systems will benefit from TGL's cash, and public listing. It looks like the bargain of the century in my opinion!

It's also significant that IK's latest purchases are at significantly higher prices than his April ones. I also feel that there have been strategic considerations here which prompted the prior I.K. selling. What's clear is that the shares were hoovered up nicely, and that I.K. was only selling into strength. I.e. providing shares for those who wished to buy at about that price, while keeping a bit of a lid on the share price. In my experience this sort of selling is always a very positive sign.

Ilyas Khan has now recently bought back 10.7 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 And in 2014 Ilyas Khan has actually increased his holding of TGL shares by over twenty one million: 21,820,276 to be precise. In addition, I.K. may also have subscribed for TGL consolidated loan notes, which would have increased his investment into TGL this year still further.

Sorry, I meant 3.5 million, and 10.7 Million!!

3.3 million to be exact Morefocus (sorry to be a pedant!). And that makes 10.5 million TGL shares that Ilyas Khan has bought recently, in four separate tranches. Remember what happened with his last spate of buying in April: the TGL share price nearly trebled within a month ... and this time we're starting from a higher base. As Tom Winnifrith recently said: "Ilyas Khan is no fool"!!

Thanks Lambpostie!

Thanks Olderandwiser. As it was a collection of the best recent ADVFN posting by others, it is to them that the thanks and credit should really go.

TGL's last move to 1p was a spike based on hope. But its next move to 1p should be a re-rating based upon reality ... and a basis for a move to 2p+. Some investors may wish they had sold (more) on the spike, and so may compensate by selling out on the next move to 1p. That's understandable psychologically, but not logical: I would at the very least hang on to some.

I totally agree Bampster. For someone of Professor Arthur Gibson's caliber to become a director of TGL, and with such explicit purpose, is hugely impressive, and a massive endorsement of the potential here. Exciting times ahead I feel!

TGL's acquisition of GOS Systems helps TGL greatly in the following ways: 1. It is very value-enhancing in its own right, which gives TGL's shares more weight in acquisitions. 2. It can help to attract complementary businesses who see something that they really want to be a part of. 3. It is indicative: of TGL's speed of action, value-enhancing deal-making ability, and of the fact that THIS is Stanhill's pre-eminent vehicle for its best technology acquisition opportunities. Professor Arthur Gobson's appointment underpins this. And this all feeds into points 1 and 2 above.

The speed with which TGL completed a "substantial transaction" just four months after becoming an investment company (at the company's 30.6.14 AGM) was faster than the norm by multiples. 30/06/2014 15:18 UKREG Touchstone Gold Limited Result of AGM http://uk.advfn.com/news/UKREG/2014/article/62746728 And coming immediately after Tom W'innifriths 'warning' that the company was a 'lifestyle shell' in my opinion showed great ignorance of the company, and left him with a lot of egg on his face. But it wasn't just the speed, but the quality and price as well. TGL have completed a company-making acquisition in a high-growth, high-tech sector, of a business with thirteen patent families, high barriers to entry, and providing essential, recurring, high-margin services. With turnover of millions of pounds, and profitable last year but for its debt (which the administration has now eradicated - leaving the company cash-rich in TGL). And they've done it with dilution to investors of just a fifth, a tiny fraction of what most shells incur. The debt was brought about by the debt built-up by acquisitions, and worsened by £400K. of aborted IPO fees due to market conditions. These are exceptional factors, so won't influence ongoing profitability. One thing TW did get right though was in his initial observation that "Ilyas Khan is no fool", and TGL's acquisition of GOS Systems certainly proves it ... as does IK's recent buying of 7.2 million TGL shares.

TGL's main potential share price catalysts over the coming weeks and months are: 1. RTO (reverse takeover). 2. GOS Systems contract wins, and trading update. 3. Tie-up with Cambridge Quantum Computing Ltd. 4. Name change. (TGL is currently seen by some as a gold mining explo. minnow - a sector so out of favour that many investors won't even look at it.) 5. Investment presentations and tips, e.g. by Small Company Share Watch (which tipped TRL), Techinvest, etc. Potentially the Concha of 2015 in my opinion. A very realistic scenario a year from now is this: multi-million pound turnover, hundreds of K. of earnings, quantum computing exposure, sky-high tech rating ... and a market cap. of £ tens of millons.

Sorry about the rushed grammar at the start of that last post!

TGL s.p. is artificially depressed at the moment, i.e. two related reasons: 1. Open short positions. 2. Campaign of smears and disinformation. Therefore TGL's move from being a shell to being an operational company, in a high growth, high tech area, is not yet reflected in the s.p. And that's a clear buy opportunity. As the truth comes out more fully, buyers should start piling in. And when the shorters start getting margins calls things will get really interesting ...

TGL's recent acquisition of GOS Systems is the key to unlocking the rest of the 'master plan' here, as indicated in TGL's recent acquisition announcement: GOS can help to attract complementary businesses who see something that they really want to be a part of. And GOS also helps to underpin TGL's current value, giving TGL's shares more weight in acquisitions. It's no coincidence that Professor Arthur Gibson has come on board here at about the same time (31st. October) that TGL was finalising the acquisition of GOS. His role is to lead in advanced technical assessment of potential acquisitions, to enable TGL to choose the best options. I would imagine that TGL has a short-list of competing candidates, as in the case of ADA: 17/09/2014 09:31 UKREG Adams PLC Final Results "...During the year the Board, in cooperation with shareholders and external advisers, reviewed a range of investment opportunities and I am pleased to inform you that a short list has been decided upon and is being advanced. We hope that the final choice will deliver substantial value to shareholders...."

Note the comparatively modest amount of money AERO have raised: just £650,000. GOS were trying to raise over ten times that amount: £8M. (£5M. of which was to acquire Deltenna, and most of the rest to ramp up expansion overseas). I'm sure that if GOS had tried for just £650,000, and at a modest valuation like AERO, then they could have IPOed with no problem.