Clearspeed Technology Share Discussion Threads

[hugepants] 17/6/2008 19:29

some comment on the new processor

[hugepants] 17/6/2008 08:13

New processor launched

[hugepants] 04/6/2008 13:34

See the final results outlook statement.

"...The Board is confident that the Group will see significant growth in revenues, with the strongest growth coming in the second half of the financial year...."

[monis] 04/6/2008 11:35

where does it say significant increase?

[hugepants] 03/6/2008 15:05

I definetly dont see this as a cash return scenario. Either a takeover or a turnaround in the business. They are predicting a "significant" increase in revenues this year and they've already lopped £4M off the running costs.

[supernumerary] 03/6/2008 14:20

Mmmmm ... normal service resumed I see.

Anybody thinking they can get their hands on the cash might do well to have a quick browse through the Adamind thread. Not always as easy as it looks...

[judgement] 13/5/2008 16:31

HP, I think that's exactly right. I just closed what was left of my short, and opened a small long position. The MMs seem to be trying to clear some stock. If that gets cleared, it could rise quite quickly to the cash value. The only route I see value coming is corporate action, but that will need to be near term.

[hugepants] 13/5/2008 15:32

It looks like Mr Market Maker is trying to slowly walk the share price back up. I dont think this small rise is being driven by buying volume.

When CSD floated in July 2004 they had already raised £41M See placing document (
Since floatation they've raised another £50M. Theyve only 20M left but there surely has to be value in the intellectual property.

[judgement] 12/5/2008 08:27

Currently hold a very small short from quite a long time back. Now thinking if it is time to buy. Given that there is no RSP bid, I agree that it is not the time.

[supernumerary] 12/5/2008 00:58

HP - 17p - not a good call, I don't think. Be astonished if it doesn't hit 12p offer within a month, and rather surprised if the 10p isn't reached. I've been watching for a very long time, but I'm not buying dearer than Farleigh - he knows more than me, lol.

[hugepants] 11/5/2008 23:42

FYI I got 100,000 last week at average 17p. I still think very possibly going lower near term though.

[supernumerary] 11/5/2008 23:02

Judgement - no need to be sorry, I've got nothing at stake here. Just find it amusing that it was an obvious and superb short at 250, but the vultures only start to circle at 16, lol.

I wonder who bought the 250K Late trade on Friday?

[judgement] 11/5/2008 22:02

sn, sorry about the negativity. Possibly a bit tactless given the share price performance!

HP, you're probably right about there being no winding-up. I guess a buyer could be found if the price was right for the staff and assets. However I think it would need to happen sooner rather than later, as they have a capability to burn through cash a fair rate.

[supernumerary] 11/5/2008 20:39

Oh dear, and this used to be such a nice board...

[hugepants] 11/5/2008 20:13

Judgement
I doubt a winding up is on the cards although Id bet their cash raising days are well and truly over unless they can show serious revenue growth.
They had record revenues for the last 6 months (OK it was only £1.2M) and they state "significant revenue growth" expected this year. Id bet they've said that before though (the large seller has obviously had enough).
The last results mention embedded processing as having potential (satellite systems sales).

[judgement] 11/5/2008 19:33

HP, it's no Indigovision, so I guess it's the latter!

Small companies can often survive, and even prosper in niche areas, but they generally can't survive in the mainstream of such a competitive market.

I looked at using their product several years ago, but a minimum of investigation revealed that it wasn't in the least interesting. The high level parallelism is difficult to make use of effectively, especially when the functionality is so restricted. So with negligible potential applications, and product that is never going to be cost competitive with those from Intel,AMD,etc they are really onto a loser.

From an investment point of view, the question is whether there is value. I can really only see it in a return of cash. There's probably not much worthwhile in the IP, so say they wind-up, I can't see too much being left after costs. If there is to be any upside from the current price something would need to be done now.

[hugepants] 11/5/2008 19:16

World leaders yet had total revenues of £1.2M last year?
I dont think the market has quite matured yet.

[supernumerary] 11/5/2008 00:43

I expect you're right - that would mean it would have to be transferred as a going concern: I can think of ways in which that might be arranged, but my imagination far outstrips my knowledge in this area. I'm sure some bright spark in private equity could dream up a way of benefiting from the situation, especially now when people are scrabbling around for every bit of hard cash they can find.

On the other hand, I doubt if anything at all is going to happen for a little while - look a bit funny if the chairman picks up 1/2M cheap shares then immediately signs a contract or does a reorganisation. Give it a month or two - if they've got nothing to report for the interims I would hope pointed questions will be asked.

[judgement] 10/5/2008 22:21

I don't really have much knowledge in the area of tax loss transfer, but I seem to recall a couple of years ago that the IR tightened up the rules to such that the losses could only be recouped by effectively the same business. I would guess in this case that would mean setting the losses against future profits from their parallel processor development. If that is the case, I would not rely on being able to make any use of them. Perhaps someone else who knows what they are talking about could offer an opinion :-)

[supernumerary] 10/5/2008 18:28

Judgement - no idea - good question - I simply assumed, always dangerous.

After a minute or two's googling it looks as though in, for instance, a reverse takeover, the value of the tax losses would only be carried forward in proportion to the value of the 'reversed-into' company in the whole, ie not very much. Is this your understanding?

Presumably if csd were sold as a going concern to eg BAE, the tax losses could be used by the purchasing company?

[judgement] 10/5/2008 16:11

sn, isn't it almost impossible to sell tax losses these days?

[hugepants] 10/5/2008 15:10

Supernumerary,

Shares in issue according to the last results is 62.6M. If you use the last RNS;

"Richard Farleigh now holds 8,583,045 ordinary shares representing 13.62 per cent. of the issued share capital"

you get 63M shares.

So 31p-32p net cash at end 2007. Say 27p now. So a pretty substantial discount currently.

Do the management hold enough shares to go for a management buyout? The rest of the directors (excluding Farleigh) hold 0.5M.

[supernumerary] 10/5/2008 12:13

HugePants - accounts say 'At the end of the financial year [ie end-Dec 2007], the Group held cash reserves of £19.6m.' With 10M shares in issue that equates to 20p/share, of which they've probably lost 4p? by now, so I'm not sure where you get your figures from.

I'm still wondering why Farleigh moved his 8M shares out of the trust they'd been held in and exposed them to public view. With his additional purchase of 500K it looks suspiciously like a management buyout forming to me.

Offer at a modest discount to cash, flog off the IP to a candidate probably already lined up, sell the shell and its £40M tax losses to a new AIM entrant, pocket the difference. The least you can say is that it must be tempting...