Cml Microsystems Share Discussion Threads

[bones] 15/3/2021 11:00

Another from today......

[bamboo2] 13/3/2021 12:57

bones, Thanks. It will be interesting to see how it all works out over the next week.

[bones] 12/3/2021 08:57

Bamboo/Net, it’s a return of capital equal to 50p a share. They give you B shares, then take them off you for 50p cash and then cancel them. Your ISA or whatever will hold cash, not B shares, plus your existing CML shares will stay intact but should reduce in value by 50p. It’s a bit like receiving a dividend but (if not held in a tax free vehicle like a SIPP or ISA) it is treated like a capital disposal for tax purposes.

[netcurtains] 12/3/2021 07:48

That is the interesting bit. Will the B shares in the ISA or outside?
Obviously with a normal dividend all the money stays in the ISA.

I cant see why they cant simply give us a dividend.

What is with the whole B share thing?

[bamboo2] 12/3/2021 07:42

hi bones/anyone, this has been on my watchlist for a while and a possible turn in the price has showed up on my chart for today.

A few probably stupid questions!

Is this return of capital as simple as it sounds, assuming shares are held in an isa or sipp [no tax implications]?

Do we assume that the Share price will drop by 50p next Thursday, assuming all things being equal?

After the 18/3/2021, could shares be sold, but the seller keeps the return?

Tia

[bones] 11/3/2021 12:50

CML issued a trading update on 19th March last year. If it follows the pattern, we should hear something next week about progress post-Storage sale.

EDIT: There is a general meeting on 18th March to vote through the return of capital so I envisage that will be the time of the update.

[roddiemac2] 10/3/2021 16:56

R@D leading to many new products is the key to success here. They have the funds to allocate to R@D.

[bones] 10/3/2021 13:07

To reinforce that CML is correct to throw everything at their “communications” sector, the giant Apple is spending big in Europe:

“Building on its deep roots in the region, Apple is adding a new facility in Munich to focus on 5G and future wireless technologies

[bones] 08/3/2021 18:00

Useful read with regard to the different types of 5G (relevant to the markets being targeted by CML):

[bones] 04/3/2021 13:54

Casting around the industry gossip……….



“There is enormous opportunity in the 5G mmWave spectrum because of the overwhelming need for increased capacity and more bandwidth,”



”5G has emerged as a hot investment theme this year. While major U.S. carriers have been upgrading to the next-gen technology for over a year now, consumer adoption is also likely to pick up meaningfully as Apple has embraced the technology relatively early in the cycle, equipping its entire flagship iPhone 12 line-up with 5G radios.”

”As 5G adoption grows, it should have a positive impact on demand across a wide range of companies, ranging from semiconductor players, tower infrastructure companies, testing equipment manufacturers, and wireless carriers. Moreover, 5G technology is likely to find much broader applications beyond smartphones, potentially in areas such as industrial automation, driverless cars, healthcare, and smart cities.”



“We are pleased to join with leaders in a range of key tech, medical, automotive sectors, as well as broad business and manufacturing groups, to urge the president to prioritize investments in chip technology as part of the administration’s recovery and infrastructure proposal.”

Biden’s response to this about setting up a process to review the supply shortage was televised last week and he made reference to getting help from friendly allies outside of the US.

In my view, the above articles (all published in last two weeks) paint a picture of hot demand for the R&D and products that CML specialise in (RF semis, mmWave for 5G, etc), lending credence to the company’s strategy to offload its Storage Division (“Hyperstone”) for a chunky USD 49M, and concentrate fully on attacking the Communications Division aimed squarely at this semiconductor space which CML say they are excited about. The only question is how long will it take for the recovery and growth trajectory to kick in after the Covid and China related hiccups that curtailed business in 2020. They did however reference a late pick up in Communications orders towards the end of the last half to September 2020

”….order intake from Communications customers in the last weeks of the half was promising.”

[bones] 24/2/2021 21:51

President Biden just signing an executive order to review semiconductor supply chains and commenting about “reaching out” to trusted allies overseas to get them to ramp up production. Longer term, this sounds promising for CML which is a part of the complex chain.

[netcurtains] 23/2/2021 09:18

Computers! They are future!
One day we all will have a computer.

[roddiemac2] 22/2/2021 15:39

Government , companies , households , all have too much debt. What happens when the handouts dry up ? Against this background CML looks an interesting prospect : unique even.

[bones] 22/2/2021 13:10

Thanks for the update, roddiemac2. The markets should look ahead to these future benefits. I do expect a bit of a general market shake-about in the near future but most of the companies I am invested in now are heavily cashed up, either through disposals, recent placings or historic profitability. I think it is a good time to be free of debt, despite the largesse being handed out by governments.

[netcurtains] 22/2/2021 07:58

Blimy bones! that looks great news. Thanks! Good thing its in an ISA

[scepticalinvestor] 22/2/2021 07:41

excellent news

[bones] 22/2/2021 07:18

Return of 50p per share, looks to be about 20% of cash standing on balance sheet at the moment. Also mentions potential acquisitions in the pipeline.

Taken together with the inherent and quite severe shortage of semiconductors in the worldwide market, I think and hope this bodes well for an exciting future for CML.

[bones] 20/2/2021 19:54

Intriguing article here.



CML says it has many Tier 1 customers. It is likely a few of them are mentioned here. Might CML be experiencing strong demand for its product right now from these desperate OEM’s?

[bones] 19/2/2021 07:57

Perhaps at an appropriate stage, a key PRFI executive might be elevated onto the plc board or, if there is further significant M&A, someone from the new blood? I get the idea that, if they are to fulfil the ambitions laid out following the sale of Hyperstone to Swissbit, they need to freshen up the aged board and perhaps make a giant acquisition that resembles a reverse takeover and magnifies their reach into their targeted markets. For sure, “Communications” is a significantly growing area of technology.