Cml Microsystems Share Discussion Threads

[ntv] 03/10/2022 14:17

I notice the daily limit is only 1500 shares or so
so not really a lot of good if for instance the market suddenly drops

[z1co] 03/10/2022 08:28

Hopefully in excess of £4.60 before they issue interim results next month.

[ntv] 28/9/2022 13:07

Hopefully back to around 360 for a top up soon

[roddiemac2] 28/9/2022 11:39

CML are getting all their ducks in a row. It will be interesting to see if the plans submitted to Maldon District council gain approval.
we are now seeing the significant on going spend on research and development bearing fruit.

[ntv] 28/9/2022 10:32

Happy with the update
Share price even up at the moment despite terrible market

[viking24] 28/9/2022 08:10

Indeed, no debt and divi.Stock will test 450 soon

[scepticalinvestor] 28/9/2022 07:09

Great update

[hew] 06/7/2022 09:46

ST in IC piece says Buy.

"Exploiting a lowly rated technology growth stock. A semiconductor chip maker and designer has:

- beaten analyst earnings estimates

- is forecast to grow profits by 20 per cent in the new financial year

- but is only rated on a cash-adjusted PE ratio of 13."

(ST's words, my punctuation)

[hew] 05/7/2022 10:07

What a feeble presentation of the headline Results - Emphasise those increases!

Revenue: +29.5% £16.96m (£13.10m)

Gross profit: +35.3% £12.80m (£9.46m)

PBT: £1.74m (2021: £0.01m)

Net Cash: £25.04m (2021: £31.9m) after £9.0m dividend

[linton5] 05/7/2022 08:12

Super results once again from cml will purchase some on a tighter spread a spurge o buying and she can move on low stock

[bones] 21/6/2022 10:40

Unfortunately, when auditors haven’t finished their work on time and need another three weeks, it doesn’t help sentiment. What is taking them time to complete? Are they looking closely at stock valuations? Work in progress? We haven’t been told and markets (and investors) get jittery in bearish times like these.

The company did however reiterate their previous “slightly above market expectations” viewpoint, so we have to conclude that the delay is more administrative in nature. Let’s see! The woolly references to processes and procedures didn’t explain a lot.

I confess I reduced my holding (which was sizeable) on this delay simply because I like to hedge my position on this kind of thing in case there’s something that is concerning the auditors. I hope it is all a lot of nothing of course!

[linton5] 21/6/2022 09:11

The company were disappointed in delay of results which tells me they will be above expectations if spread wasn’t so cack 353,368 I’d buy a few

[bones] 12/5/2022 14:00

Read across from giant competitor STM (based in Europe, quoted in the US):



CML is in the right place here.

"....ST will leverage its early focus on three long-term enablers: smart mobility, power and energy management, and IoT & connectivity....."

[matthew palmer] 07/5/2022 15:32

Anyone on TECHINVEST, I am wanting to form a group of similar minded people to discuss its views etc and information.

Click my name and send a message.

[km18] 04/5/2022 16:39

CML Microsystems PLC comprises divisions providing designs and solutions across the semiconductor equipment industry. The firm is engaged in narrowband communications integrated circuits which are useful to construct wireless data, satellite communications and marine radio applications. Given the wide range of semiconductor solutions, the firm managed to perform ahead of market expectations with a robust net cash position of £25m, yielding future organic growth. This plausible market news was reflected on the solid EV/EBITDA of 15.02x, thus capturing intrinsic value.

[bones] 26/4/2022 15:45

That’s the buyback programme completed, with the customary CML efficiency! I guess there were known sellers and the partial liquidation of the JM Gurry estate already lined up. Keeps the share base tight.

[wiloughby2] 26/4/2022 08:03

Really quite handy for the company to step in and buy the family shares to facilitate its buy back agenda. Saves having some interfering new shareholder causing ructions in the boardroom ( and may pay out uninterested family members or HMRC's greedy IHT department )Either way good luck to the Gurry family- multi generational efforts

[linton5] 14/4/2022 11:09

Here we go mms will bring her lower I’m waiting guys

[metis20] 14/4/2022 10:07

150k at 355p yesterday

Daily average is only about 25k shares!

Share buyback programme announced yesterday

[sev22] 14/4/2022 08:10

'Tap into a lowly rated high growth technology play'

A Maldon-based semiconductor chip designer and manufacturer is outperforming and is well funded to accelerate growth in a market that is exhibiting secular growth mega trends.

It also offers hidden value.
April 13, 2022
By Simon Thompson

*Trading ahead of analysts’ annual pre-tax profit forecasts of £2mn, up from £1.1mn in 2020/21

*Net cash of £25mn (150p a share), up from £22.6mn at 30 September 2021

*Strong forward order book stretching beyond 12 months

Maldon-based semiconductor chip designer and manufacturer CML Microsystems (CML:380p) is reaping the benefits of the strong secular drivers in its end markets. Following the strategic disposal of its solid-state storage division, CML is a pure-play on the high growth industrial communications market. Specifically, it provides integrated circuits to distributors and system integrators (Cobra, Hytera, Icom, Kenwood, Orbcomm and Sepura are all clients).

CML is not only leveraging its standing as a key supplier to many of the world's Tier 1 equipment manufacturers, but is well funded to accelerate growth in a market that is exhibiting secular growth mega trends. Key drivers are increasing demand for data to be transmitted faster and more securely, the upgrading of telecoms infrastructure, and the growing prevalence of private commercial wireless networks for voice and data communications linked to the industrial internet of things (IIoT). In data-centric markets, higher data throughput from terrestrial and satellite communications applications are required to meet the needs of the growing machine-to-machine (M2M) and IIoT market segments.

CML’s addressable market is worth $1bn (£768bn) and includes a number of key growth areas in the coming years: critical infrastructure (public utilities, smart grid, RF identification (RFID)); 5G (repeaters, small/pico cells, fixed wireless access, distributed antenna systems, smart meters); and satellite communications (terminals, broadband access).

To address these multiple growth markets, CML has been expanding its semiconductor product portfolio by adding narrowband applications operating at the lower end of the radio spectrum. As opposed to broadband, these applications use short-range fixed-location wireless applications such as RFID, commercial vehicle remote keyless entry devices or narrowband-IoT focused on indoor coverage, low cost, long battery life and high connection density. The acquisition of a third-party design house, PRFI, has been instrumental in widening the product offering and addressable markets.

PRFI is an approved third-party design house for several leading global semiconductor companies and boasts an impressive client roster that includes BAE Systems, Huawei, Inmarsat, National Semiconductor, QinetiQ, Samsung, Sony Semiconductor and Thales. PRFI was acquired not only for its expertise in microwave and millimetre-wave frequencies, including wide band applications for high data rate applications, but to speed up the time-to-market for new products. It’s doing just that, launching a new SµRF range of high frequency, high bandwidth integrated circuits targeting RF and millimetre-wave frequencies in emerging markets such as 5G, satellite and IoT. First orders have already been received from early-stage adopters within vehicle tracking and smart grid applications.

Importantly, CML’s diverse, blue-chip client base includes some of the world's leading commercial and industrial product manufacturers, and the spread of its customers and diversity of the product range help protect the business from the cyclicality usually associated with the semiconductor industry. Moreover, CML’s proprietary IP, reputation for quality and reliability, and single-source supplier status means that once its chips are designed in a client’s product then it rarely loses a contract given the significant product redesign required for the client to take its business elsewhere.

Furthermore, CML works closely with clients through the product development cycle, to reduce the time-to-market and de-risk the future sales cycle. Effectively, this ‘one-stop shop’ offering is an extension of the customer’s own engineering team. CML utilises a combination of outsourced manufacturing and in-house testing, employing 147 staff, of which 40 per cent are engineers, across operations in the UK, Asia and the US.

Currently, a high proportion of sales are derived from Professional Mobile Radios (the network of choice for the police, ambulance service, military and other critical infrastructure markets), and data-centric wireless applications (critical infrastructure, public utilities, smart grid). 5G infrastructure (base stations, small cells, distributed antenna systems) and satellite communications are a smaller part of the mix, but their contribution is forecast to ramp up in the coming years.

The secular growth drivers are driving revenue and profits upwards. CML has outperformed house broker Shore Capital’s previously upgraded full-year earnings estimates and is well set to lift pre-tax profit by 25 per cent to £2.5mn on 11 per cent higher revenue of £17.6mn in the new financial year. On this basis, the shares are rated on an attractive cash-adjusted forward price/earnings (PE) ratio of 15 and offer a prospective dividend yield of 2.8 per cent. A recently announced earnings accertive £3mn share buy-back programme is another bull point.

CML has hidden value in its balance sheet, too, owning valuable unencumbered investment property near Chelmsford as well as the old Microsense facility at Portsmouth which is let to a third party. These properties were last valued at £3.78mn, a valuation well underpinned by rental income of £0.34mn. In addition, the unencumbered property and 29 acres of surplus land at the Maldon headquarters has a £4.5mn carrying value, or less than half its estimated open market value.

I initiated coverage, at 400p, earlier this year (Alpha Report: ‘Profit from semiconductor megatrends’, 4 February 2022), and see potential for almost 50 per cent share price upside to my 550p target price. BUY.

[hew] 14/4/2022 08:06

"see potential for almost 50 per cent share price upside to my 550p target price. Buy."

[c3479z] 13/4/2022 20:42

ST has recommended cml again.

[linton5] 13/4/2022 15:12

Yes totally agree fantastic long term stock for the patient this one, keeping something back for mm games

[bones] 13/4/2022 14:52

Looks like they are finding ready sellers at 350p. It’s been clear ever since the volume that appeared after the Simon Thompson analysis (target price 550p) in February that there has been a large seller. Maybe the company is aware of one of the institutions wanting out and is helping them along at this level.