Cml Microsystems Share Discussion Threads

[bones] 29/3/2021 14:38

I have now received my capital payment from CML via my AJ Bell ISA and SIPP. Gives the valuation a tidy boost :)

[bones] 26/3/2021 10:19

I'm not expecting it today, Net. The nominee shareholders for mine are my broker, AJ Bell. They might receive it today but they then have to allocate it across all their clients and transfer individual sums so that might take a day or two more, I expect. Still, I live in hope!

[netcurtains] 26/3/2021 09:22

Has anyone got their cash this morning? Mine has not arrived as yet. Hoping its today but you never know.

[bones] 22/3/2021 12:22

All good, Net. I agree, some will re-invest the capital payment back into CML.

[netcurtains] 22/3/2021 12:11

"breakeven" - "winnings wiped out" - same .
Yes I agree, I bought for the future not the present.
Thanks bones.
I suspect a significant percentage of people will reinvest
the money back into CML - touchwood!

AOR - yes you did well there. I did OK too - a profit is a profit.
I vaguely remember, at that time, I moved the money into TRD.
I kept buying and buying and buying... (I'm still buying)

[bones] 22/3/2021 12:08

Have you included the 50p refund? This is the equivalent of 385p today.

I am about breakeven on that basis but I don't really worry about that because this is all about their future strategy in 5G including the prospect of using some of their cash pile for (hopefully) shrewd acquisitions, not to mention the potential to be acquired.

Got to look long term at these slow burners. Net, don't make the same mistake you made with AOR/RUA? :)

[netcurtains] 22/3/2021 11:07

Well thats all my winnings wiped out.
Back to square one.

Any chance this might bounce back higher
or are we on the way down further?

Any views?

[netcurtains] 20/3/2021 13:02

thanks - I'll check

[bones] 20/3/2021 13:01

Net, my broker (AJ Bell) sent me messages at every stage of the process including the casting of my votes. I have an ISA and a SIPP with CML shares in each.

I am surprised they haven’t been in touch with you about it. Either way, you should automatically get the money as it’s been voted through.

[netcurtains] 20/3/2021 12:07

If shares are held in an ISA do I have to do anything? To I have to let my ISA provider know anything or does it happen automatically?

[bones] 20/3/2021 12:04

Bamboo2, as you bought last week, make sure your broker has you down for the 50p per share capital return. It went ex-cap on Friday.

[scepticalinvestor] 19/3/2021 11:05

exactly. And wont have to wait long for the payment either

[netcurtains] 19/3/2021 09:43

That is quite a big rise.
Looking good!

[bones] 19/3/2021 09:38

Thanks roddiemac. Also, as Sceptical Investor pointed out and I had forgotten to factor in, the shares are now ex-rights so the 50p drop is presumably factored in by the MM’s. Therefore, today’s move is “up 15p” as it stands. Funny that the drop in bare price seems to have flushed out a few sellers.

[roddiemac2] 19/3/2021 09:33

bones,

Inflationary pressure is likely to grow forcing interest rate rises at some point, so , yes, " there will be a tantrum of some size "

CML should be relatively immune to a market fall since the bulk of the market cap is represented by cash.The cash puts CML in a strong position to make an acquisition in the event of market falls, many companies having a debt problem.

[bones] 19/3/2021 09:12

We don’t have an earnings number to use for y/e Mar21. Just an indication of communications revenue. From my viewpoint, it’s the future performance that matters. There was no unexpected news here, but there was optimism. They have a tendency to couch comments in cautious terms but I’m happy with my investment here. We have potential acquisitions, future growth in a fast growing market, dividends, strong balance sheet.

The issue for me is whether the overall market holds up. If market interest rates continue to rise, there will be a tantrum of some size, and no share will be immune to that.

[scepticalinvestor] 19/3/2021 08:43

It is possible to calculate EPS yourself...Ex day has passed, correct?

[bones] 19/3/2021 08:10

I don’t see any reference to EPS. As I said above, the results for y/e March 21 will be a hotchpotch of gains, part periods and rough trading. That’s all old news. What matters is the improving outlook for the communications sector.

The MM’s are opening the traps and the short termers are wandering in. I already have a hatful of these but there may be more to be had soon :)

[netcurtains] 19/3/2021 07:56

looks good.

[scepticalinvestor] 19/3/2021 07:55

Not bad but looks as though eps forecasts were slightly missed

[bones] 19/3/2021 07:43

I am happy with the trading update. Given the company is not in the habit of broadcasting hyperbole, there are plenty of positives on show.

“...The Board is pleased to confirm that the order intake improvement seen during the final weeks of the first half period continued through the second half. On a constant currency basis, revenues slightly improved over the first half (H1 FY21: £6.17m), with new order intake markedly better.

Market intelligence suggests that conditions for voice applications should improve through the first half of the new financial year and, although the timing and extent of a full recovery is yet to be determined, the sentiment does give cause for cautious optimism....”

Hopefully, this signals the point when the aircraft has just taxied onto the runway after a tedious wait on the tarmac and the engines are now revving up. Not that CML would put it that way. The strategy to focus on the communications sector is now in play. I think it likely they are scanning the market for an appropriate acquisition or two.

As for the results to the year about to end, as they say, it will be a bit meaningless on the headline numbers as there will be a dirty great capital gain on the sale of Hyperstone which I think they paid less than US$10M for in 2003 and sold for $49M. There will also only be nine months of results from that division until sale in December (completed early Feb21). The communications division was the problem child in the first half although that is now improving.

[bamboo2] 18/3/2021 20:49

Not sure if any use to find applications, but Digikey supplies CML gear.

[bones] 18/3/2021 18:34

Came across a PDF from 2017 which makes reference to CML product used by BT. Random observation, no more than that but it does at least suggest BT is one of CML's customers (no surprise really).



"1.1 Brief Description

The CMX602A is a low power CMOS integrated circuit for the reception of the physical layer signals used in BT's Calling Line Identification Service (CLIP), Bellcore's Calling Identity Delivery System (CID), the Cable Communications Association's Caller Display Services (CDS), and similar evolving systems. It also meets the requirements of emerging Caller Identity with Call Waiting services (CIDCW)."

[bones] 18/3/2021 11:23

Data and voice semiconductors :)

I believe recent R&D is concerned with the narrower and lower ends of radio frequency / mmWave components. I am not an expert in this technology but I read that, as 5G rolls out, there will be a need for equipment to be placed pretty much on every street in the world so that the signals sending ultra high speed, huge volumes of data can reach the locals. You've got this trade off between ability to send massive data at high speed versus the distance it can travel.

I just don't have knowledge of whether that kind of component is needed by BT in its fibre laying but my instinct says that the equipment is likely to need some high tech bits in it!