Cml Microsystems Share Discussion Threads

[roddiemac2] 12/1/2021 11:46

bones Yes they might attract a bid.

[bones] 11/1/2021 11:08

Thanks, Roddiemac2, for the comments and information. You raise two areas where I did not emphasise advantage and that is (1) the income attraction, strong cash flow and dividends, and (2) asset backing. At current valuation, CML appears to be a sitting duck for any keen aggressor thinking of an outsized bid.

[roddiemac2] 11/1/2021 10:22

bones You have summed the situation up very well. "The board’s average age is well in the 60’s, so some must be thinking of retirement at some stage!"--- Several years ago, at the AGM, I did ask Chris Gurry If they were aiming to sell the business at some point. He said "not yet". "I have to assume that CML now has a war chest to expand M&A, as there has been no talk of returning the cash to shareholders."--- CML have returned cash to shareholders, by way of a special dividend,on several occasions in the past, but they do look to be getting all their ducks in a row for expansion now. As well as the considerable cash pile, they own their own premises and surrounding land ( Oval Park ). On occasion, when I have called in there , it has been evident that they have ample spare space if staffing levels were to be increased. They are in a strong position to exploit opportunities as they arise.

[bones] 08/1/2021 22:31

I feel certain that this will be a good investment at these levels. Market cap at £62M with an expected £36M (US$49M) cash due to come in from the sale of the Storage Division to Swissbit. At 30th September, there was £9M cash on the balance sheet. Let’s assume that balance is similar now and that’s potentially £45M of cash on board. So, ex-cash market cap is £17M on those assumptions. This is for a business that is now exclusively focussed on the Communications market, an area where CML sees considerable potential increasing its influence in the 5G and Internet-of-Things spaces. Communications had a relatively rough half year to 30/9/20 thanks to delayed demand resulting from Covid19 impacts on its customer markets plus they have not been helped in general by the fractures caused by the US/China trade spats. If, as we all hope, things slowly improve for the world economy from Covid19 vaccinations and possible improvements in trade relations once the new administration takes the reins in the US, things could look upwards for CML’s business. I have to assume that CML now has a war chest to expand M&A, as there has been no talk of returning the cash to shareholders. They acquired PRFI in March 2020 which adds more R&D and IP to the group. I guess it was a small purchase as the sum paid was not disclosed. So, perhaps the next acquisition will be a lot more juicy and earnings enhancing? Overall, I am excited by the outlook and for the market to attribute just £17M (excluding cash) to the Communications/5G/IoT activities, seems out of line! The board at CML is long serving and experienced, always conservative. That’s something I like. Question remains for me is how “racey” or “daring” will they be with the new streamlined arrangement and a pot of cash to hand? The board’s average age is well in the 60’s, so some must be thinking of retirement at some stage! Perhaps new blood will arrive with a future, major acquisition?

[ny boy] 07/1/2021 16:40

Onwards & upwards, breakout mode!

[roddiemac2] 17/12/2020 20:11

from memory ----tomorrow

[scepticalinvestor] 17/12/2020 07:50

when is divi pay day again?

[roddiemac2] 11/12/2020 17:46

I have held these in varying amounts for 19 years, sometimes top lopping , sometimes adding. The sale of Hyperstone puts them in a very strong position . One of the problems in the past was that they had a couple of customers that represented more than ten per cent each of the business. They now have a much wider customer base , and it is growing. They should be capable of growing the business from here. A little patience could prove very profitable .

[roddiemac2] 10/12/2020 20:43

Hyperstone was bought 3/7/2003 CML is initially acquiring 98.8% of the share capital for a cash consideration of €4.634 million and warrants totalling 77,325 Ordinary 5p Shares in CML (' Ordinary Shares') valued at €0.227 million. Additionally, CML will enable Hyperstone to repay shareholder loans of €2.344 million paying €1.419 million upon completion and the balance out of Hyperstone's future profits after tax. Following the Acquisition, employee share rights will convert to shares and CML has agreed to acquire these from employees for a cash consideration of €0.137 million and warrants totalling 39,687 Ordinary Shares valued at €0.116 million. All warrants issued as part of the transaction are convertible into Ordinary Shares between 2 January 2005 and 2 July 2006

[scepticalinvestor] 10/12/2020 09:39

been a superb day for me so far - up in CML and APGN

[scepticalinvestor] 10/12/2020 09:09

back to years high53% up after buying in at 228not bad for a few weeks work

[ny boy] 10/12/2020 08:34

A nice reaction on a dark, grey winters morning!

[chrisdgb] 10/12/2020 08:05

Fascinating how they must see the potential in the IOT side for communications...

[scepticalinvestor] 10/12/2020 08:02

awesomestill holding from the 220s

[ny boy] 10/12/2020 07:59

All aboard the under the radar express train, more good news out this morning to get us on our way, stay invested, patient and see healthy long term gains

[chrisdgb] 10/12/2020 07:14

Wow..................

[scepticalinvestor] 03/12/2020 18:42

back to pre covid lvls

[scepticalinvestor] 26/11/2020 16:40

indeed - this will do very well imo

[ny boy] 26/11/2020 15:02

Surprised not more investors in this recovery play! Onwards & upwards, I like under the radar stocks

[ny boy] 24/11/2020 22:43

Velly happy to hold here, US markets are cranking up again. Santa rally coming

[scepticalinvestor] 24/11/2020 13:28

Ticking up nicely!Good news abt divi

[scepticalinvestor] 24/11/2020 11:16

Agree300p strongly beckons

[chrisdgb] 24/11/2020 10:42

Nice volume ticking through......

[chrisdgb] 24/11/2020 08:04

Solid looking results, should be congratulated in this environment, we know China is flying and 2021 should see decent capex recovery.........