Block Shield Share Discussion Threads

[britishbear] 20/5/2005 09:26

Been looking carefully at CAR - was tempted at low 50's but got caught today with the sell off of the clothing arm. Will wait for it to settle down again.

[sheeneqa] 20/5/2005 09:00

Good timing, bought a few on the low to try and bring my average down 120p, second largest holding on aim after AVG.....

CAR is another into RFID with their CIT technology.........

[britishbear] 20/5/2005 08:22

Good to see the share price reacting (at last) to the key patent wins. Along with a general bounce in small techs this should see BLS moving forward. What we need is more general acceptance of RFID and its future potential.

With INN off its highs there is still some way to go but happy to be in both companies at this early stage.

[britishbear] 18/5/2005 10:57

Some good RFID related news here - should help the share price. Good entry price as well. These, as the RNS states, are likely to be of major commercial value and shows the direction of the company.

---------------------------------------------------


Embargoed Release: 07:00hrs Wednesday 18 May 2005

BLOCK SHIELD CORPORATION PLC

(`the Company' or `Block Shield')

Block Shield grant of two new Patents

Block Shield Corporation plc (BLS.L) a leading provider of innovative
electromagnetic shielding products for radio frequency emissions, is pleased to
announce that it has received Notices of Allowance from the US Patent Office
for the issuance of two new Patents relating to equipment and methods for
producing metallized thermoformable EMI shielding material and EMI shielding
for electronic component packaging.

The granting of these two new patents brings the total number of patents
granted to Block Shield to ten.

The applications covered by the patents are of major commercial importance for
addressing, securing and protecting the higher volume markets of electronic
equipment and components respectively.

The first patent provides Intellectual Property coverage in industrial
processes in order to provide solutions for full volume automation in the
production of shields against electromagnetic interference (EMI). These
innovations are highly advantageous for applications in high throughput
production processes, which are typically required in the case of electronic
equipment manufactured for professional and consumer use, where the challenge
is profitable products within competitive prices.

The second patent covers solutions identified for EMI protection of integrated
circuits. The growth in the sophistication of processes for integrated circuits
has resulted in their being a major source of EMI. The increasingly compelling
and effective solution to this problem is to shield the whole integrated
circuit. The process covered by this patent is particularly suitable for the
purpose.

Dr. Pier Antoniucci, CEO of Block Shield, commented:

"The electro magnetic compatibility (EMC) solutions offered by Block Shield are
gradually expanding towards markets of large volume equipment with competitive
pricing. The challenge of the high volume profitability is met with
manufacturing automation and miniaturization.

These patents protect not merely our proprietary EMI components and integrated
circuit casings, but also the equipment and processes for the automated and
industrialized manufacturing of those items. As a result, our confidence in
being able to effectively satisfy the market requirements is significantly
increased".

The Company expects its preliminary results to be published on 15 June 2005.

[katylied] 09/5/2005 13:41

Printing v Metal deposition? I wonder if printing methods
are dependent on 'silver' inks, whereas metal deposition
might work well enough with 'aluminium'. If so, could be
a very significant cost difference. For example, 'silver'
loaded adhesives retail around ~£3 per gram. RFID tags
need to be priced in cents. Obviously, in quantity
everything gets cheaper, but the 'silver' price
would have to be a limiting factor...

[katylied] 09/5/2005 10:18

May have been posted before. Good overview,
but doesn't provide any RFID info....

[britishbear] 08/5/2005 11:45

Note that the last 75,000 sale on Thursday was a case of an excise at close to 15p and then an immediate sale into the market at around a £1.

Not good news to see "insiders" selling but it makes them a few quid for a house deposit.

[katylied] 06/5/2005 12:45

I guess the finals are due... now. Turnover for the 2nd half will be ~$1.4m to give over $2m for the year. Sales growth is therefore a healthy 100% over the previous year. Meanwhile, much investment for greater capacity has occured only recently and RFID doesn't figure in the historic sales at all. This time next year, annual sales should be not less than $4m and with RFID, perhaps consdiderably more. Balance sheet is not particularly strong, but as long as strong growth is maintained, not a huge issue. Current MktCap ~£26m. Hmmmmm...

PS... don't mind me, I am thinking aloud...

[katylied] 06/5/2005 11:16

"...The purchase price of $1.5 million will be satisfied by the issuance of non-interest bearing convertible notes redeemable by way of conversion into 755,857 ordinary shares of 1 pence each in Block Shield (at a price of £1.05 per share) at the election of the noteholder at any time during the twelve month period following the acquisition. The Company has retained the right to redeem all or part of the notes in cash , but any notes not redeemed or converted within twelve months will automatically convert on 17th December 2005..."

So, maximum issue is 755,857 shares. Mind, if the RFID side were to suddenly take off, turnover could rocket and they might buy back all of the notes...

[edit]

Also... from the Interims... "...Cloverleaf Holdings Ltd has made available a facility of $1 million to the Company. The facility is unsecured, carries interest at a rate of LIBOR plus 1% and is repayable on 31 December 2005..."

[britishbear] 06/5/2005 11:09

Good comments KL - I suppose it depends on how large the chunk of shares at £1.05 actually is. Good news and good results would certainly move it past that value and BLS have a strong incentive to move it past so that the debt holders have a good incentive to covert.

The removal of debt by BLZ is already quite impressive and the balance sheet is looking in reasonable shape.

Will hold off an additional purchase until the next RNS - still seems to be a largish seller about.

[katylied] 06/5/2005 10:04

The good news (for me) is that I have figured out what this company actually does, have had a look at the patents (except the 2 RFID applications, as they don't appear to be published yet) and have more or less seen where the company is coming from... and going to... On the whole I like what I see, but...

While actual current growth remains unknown, the share-price (or rather 105p) is in fact, the logical price for these shares. The chart shows why, but more to the point another chunk of shares at 105p are due to be listed by end of year (though not necessarily so - debt repayment/conversion). It seems that the shares are now likely to sit at this level, unless some good reason not to, arrives out of the blue...

So, while in the past, I have been indecisive about
such situations, this time I am not so sure... doh!

[katylied] 05/5/2005 17:00

Not really relevent to anything in particular, but this seems to be the kind
of sales pitch that brought BLS to AIM. Seems to make sense...



Hunter Wise and Dechert LLP... "Teather and Greenwood
as underwriter to U.S.- based Wavezero, Inc., in its
IPO on AIM through a new U.K. holding company renamed
as Block Shield Corporation plc"...

[britishbear] 05/5/2005 13:10

Apparently there was a DUC broker note on the 19th Jan 2005 with a buy recommendation (24 pages).

Anyone has access or seen this document?

[sheeneqa] 05/5/2005 11:21

COMPANY BACKGROUND

The Company was formed in 2000 to bring together a highly experienced management team from the United States electronics industry to introduce new technology into the global electronic shielding industry. At foundation the Group owned an existing decorative metallising business and acquired key patents for its technology.

Block Shield Corporation is a member of a group of companies of which it is the holding company. It has three wholly owned subsidiaries, WaveZero Inc, New WaveZero Inc and VPI Inc, all of which are incorporated in the Unites States. The activities of the Company are currently primarily in the United States where it has headquarters in Silicon Valley, California and production facilities in Wisconsin.

The Group is now in a mature stage of development and is beginning to commercially exploit its range of patented technological solutions. It listed on AIM on 27th April 2004. The Company chose to list on a stock market in London rather than in the United States as it has ambitions to be a global supplier.

The principal shareholder is Australian entrepreneur Michael Fitzgerald, who is a successful investor in and manager of technological and biotechnological companies.

[britishbear] 05/5/2005 10:53

Couple of points from the interims:

Good customers - working with such people has to be reflected in the market cap.

Second point refers to "legislation" - this could make BLS's patented technology a must have.

Excellent potential.

--------------------------

* Our customer market penetration has grown rapidly. During the reporting
period, the Group received production orders - or commenced working on
specific projects with - a number of important high volume business
customers. These include Bose (consumer electronic devices), Siemens
Medical and Watkins Johnson (medical electronic devices), Sun Microsystems
(personal computers) and Juniper/Celestica (data communications equipment).


-------------------------------
Future Prospects

As electronic devices become more complex and miniaturized, and importantly, as
traditional shielding methods become prohibitively threatened by onerous and
looming regulation, shielding requirements and constraints are becoming
elevated to a significant problem which needs to be addressed at the design
level.

[katylied] 05/5/2005 10:49

By the by, why did they list in London?
Are they also listed elsewhere?

TIA...

[katylied] 05/5/2005 10:31

Well I guess the key question is... does a MktCap of ~£26m
represent good value. Obviously, it is better value than
it was, but... frankly... I am still trying to get my
head around what the company does and how successful
it is (will be) at doing it...

[qmarikar] 05/5/2005 10:21

I hope you keep your fingers ! I would be very suprised and annoyed if the fall related to company specific information not being released to the market, especially so soon after the very positive trading statement. The more likely scenario is general selling exaggerating moves on BLS because of its thin market - notice how it moves up and down on almost straight lines in the past. Recent margin calls on CFDs have caused some traders to close whatever they can to fund their losses this may have impacted BLS too.

[britishbear] 05/5/2005 09:52

Post research I have taken a starter stake. These can bounce quite quickly so, although knife catching could take my fingers off, I think the potential for a 10-20% bounce is there plus the long term potential is there. Also hedges my INN holding instead of doubling up over there.

BLS seems massively oversold although volumes makes such chart analysis a dangerous game.

[britishbear] 05/5/2005 09:25

Question is "why" the determined seller. The market is down but not for RFID companies - so why has BLS been hammered. The issue is whether this is market related or firm specific. e.g. loss of a contract, high overheads, running out of cash etc.

Needs a little more research...

[qmarikar] 04/5/2005 18:24

possibly a function of a thin market and a determined seller

[sheeneqa] 04/5/2005 17:00

Embargoed Release: 07:00hrs Thursday 24 March 2005

BLOCK SHIELD CORPORATION Plc

(`Block Shield' the `company' or the `Group')

Trading update

Introduction

Block Shield Corporation PLC, a leading provider of electronic passive
components for electro magnetic compatibility (`EMC') and radio frequency
identification (`RFID') applications, today provides a trading update for the
second half (`Second Half') of the year ended February 28, 2005 (the `Fiscal
Year').

Pier Antoniucci, CEO, comments:

"Since joining the Group last June as CEO I have been delighted with both the
rate at which the company continues to progress its technological offering as
well as the success with which we have been able to address new and rapidly
growing market sectors with our technology.

Throughout the second-half of this year we have seen the Group grow from
strength to strength, making substantial progress in both commercialising our
product offering and expanding our industrial operations and Intellectual
Property portfolio. I would like to take this opportunity to welcome Jose
Verger to the Group who joins us as VP of Global Sales and I look forward to
reporting on both his and the Group's future successes"

Business progress summary

Revenues for the Fiscal Year have more than doubled over the previous year and
trebled over the Second Half as compared to the preceding six-month period.

Overall, the Group has experienced a substantial increase in the rate of its
development that has seen it achieve a number of strategic goals across all
areas of its business divisions. Of particular importance has been the progress
achieved in expanding both its industrial capabilities and its business
relationships which have led to a strong growth in commercial sales and the
development of numerous, previously unforeseen, business opportunities.

Highlights

Of particular importance, the Company is pleased to highlight:

Industrial Acquisition and Disposal

The acquisition of Deep Coat in December 2004 has provided the Group with
sufficient capacity to meet planned revenues throughout 2007 and has added
further valuable and complementary Intellectual Property (`IP') to the Group's
current portfolio. Without requiring additional investment, the additional
capacity and IP from Deep Coat will be of immediate application to the Group's
intended penetration into the RFID sector.

As a consequence of the acquisition of Deep Coat, the Group disposed of most
the assets and business of its subsidiary, VPI, effective February 28th, 2005.
The Group retained all relevant IP and certain freehold properties as part of
the transaction.

While the disposal is not material from a revenue perspective, it permits the
Group to focus its production and management attention on its Deep Coat
acquisition and the numerous commercial opportunities that it believes exists
within the emerging RFID sector.

Future Business Opportunities

During the Second Half, the Group has been increasingly solicited by several
sectors of the RFID industry to extrapolate its technological, engineering and
industrial know-how in pursuit of a fundamental product of the RFID structures:
the electronic tag.

"Initial business and engineering development approaches have confirmed the
likelihood of the prime role that Block Shield will play in the progression
towards the commercial viability of RFID technology in what is a fast growing
and hugely important industry," commented Mr. Michael Fitzgerald, Chairman of
the Board of Directors.

The Group continued Market and Sales expansion

Two initial agreements were concluded in Asia in the Second Half: one for the
exploitation of the dispensed electro-conductive adhesive Technology (`DECA')
for applications in the Greater China market and for the creation of the first
metal deposition production line with a pilot installation in Hong Kong. Both
agreements brought immediate revenues and include future royalties. Other
initiatives are ongoing with potential partners in Asia.

In the meantime multiple repeat orders of EMC products have been increasingly
flowing in. In view of the rapid expansion of the Group's product offering and
penetration into new markets a Vice President of Global Sales, Jose Verger, was
added to the management team. Mr. Verger will be primarily responsible for
driving sales expansion of the EMC products and strategically positioning RFID
products for the best business exploitation.

Engineering achievements

In the Second Half, the design of the first automated machine for the DECA
attachment has been completed and the first 12 machines have been manufactured.
Three machines have already been sold and delivered and several more have been
assigned to partners or potential customers.

"The DECA Technology is a corner stone in the sales potential of Block Shield
because it provides competitive innovative industrial solutions both in the EMC
and in the RFID business applications," commented Dr. Antoniucci.



The growing endowment of Intellectual Property

In addition to the business achievement from additional DECA Technology
developments mentioned above, Deep Coat has brought to Block Shield a
considerable additional endowment of technology in the core strategic area of
metal deposition over polymer structures and substrates.

Finances

Funds received from revenue, together with existing committed loans are
sufficient to bring the company to profitability.

Preliminary Results

The Company's preliminary results for the year to 28 February 2005 will be
announced not later than the 24th May 2005.

Posted this back up to refresh my mind why I bought into this company...

Bullish or what, still the share price has been relentlessly pounded in the run up to the results...

[britishbear] 04/5/2005 16:52

what has changed though Sheeneqa? Surely the low PE and growth prospects are in the price? Is this fall over and above the general small tech sell off?

Looking attractive at these prices.

[sheeneqa] 04/5/2005 15:59

Not looking good here, overheads will be high........