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CML

December 2012

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • CML
  • Price:
  • 380p
 CML’s results for the six months to end September showed sales up by only 3% to £12.7m but pretax profit was up 20% to £2.41m. Eps was up 14% to 11.2p. Net cash position improved to £6.5m from £4.4m. Gross margin remained stable at 69%The swing factor, as has been the case in the recent past, was Hyperstone, which supplies semiconductor flash memory controllers into industrial solid state storage applications and grew by roughly 20% to £6.1m helped by price increases and volume gains; its future looks bright with the company issuing a trade release launching its fully compliant SATA family of serial flash controllers, which will benefit H2. The market opportunity is also 4x larger than the parallel interfaces. ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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