An old metal basher (engineeer) reinventing itself as a high tech company I would say. Rolling P/E of circa 13.

RFID is poised to replace barcodes and magnetic stripes and will be in every product imaginable. By 2007, the worldwide RFID market is projected to be worth up to 2.5bn and 6.5bn by 2012.

"The total value of this market, including systems and service, will rocket from $1.95 billion in 2005 to $26.9 billion in 2015."

http://www.foodproductiondaily.com/news/printNewsBis.asp?id=58176

"A British injection moulding company was grappling with the problem of improving the decoration on mobile phones. Motorola wanted its silver logo on the units, but when Carclo tried to print them using inkjet, the metallic particles were too big to flow freely through the printhead.

In overcoming this, Carclo came up with a way of printing pure metal at two metres per second. And by switching copper for silver, developed the means to print RFID (see panel) antenna inline at label and packaging production speeds.

It was a completely accidental, but very timely discovery. The last 12 months have been packed with milestones in the development of RFID, the new generation of barcodes that many people see as the merging of printing and electronics. By 2007, the worldwide RFID market is projected to be worth up to 2.5bn and 6.5bn by 2012.

It is revolutionising logistics and in packaging and converting has trickled down to single-case use. Forecasts are that by 2012, 57% of all labels will be RFID enabled.

http://www.dotprint.com/fpack/rfid_04.htm

Brewin Dolphin Securities 24-02-05

'05 pre-tax: 2.80M eps: 5.48 div: 1.30
'06 pre-tax: 3.90M eps: 6.11 div: 1.50

We certainly have had a break out today aswell.

I hope to find up to date Broker forecasts.

Please DYOR.

cheers GF.

Chart showing the breakout.

GF: this company has a serious pension issue. In their most recent figures, the pension deficit increased from 13.8m to 17.1m net. When this appears on next year's balance sheet under the new international accounting rules, this could be more than enough to erase distributable reserves and is the reason why the board is seeking approval for a reduction in capital. The net effect, in my opinion would be to weaken the balance sheet and increase the gearing, making it higher risk than the chart might suggest.

My other concern was the percentage of stock held by the directors.

Yes Priscilla Im aware of the pension deficit but I feel the company are taking steps to strengthen the balance sheet as the disposal of the textile Division and property in yorkshire shows. I am assured other developments are ongoing in this area. Any realisation in the RFID business this year could really ramp this one up and I am aware of interest from European manufacturers.

'I will take mi chances' as they say.

cheers GF.

Looking at the buy volume today it appears the Stanelco crowd are jumping aboard. There are similarities.

cheers GF.

The pension impact and the directors holdings ruled this one out for me some months back, GF but I wish you good fortune with it.

Cheers mate.

GF.

Dont no what to say here, but it appears all the Carclo employees know the crack. Big things going on I am told.


cheers GF.

Lookslike CityWire like this one, lifted from anothe board..............

The CFDealer: how to profit from the invention that will replace the barcode
Published: 0:12:10 Wednesday 29 June 2005

While these two subjects continue to be in vogue I would like to prod into another potentially very exciting subject, namely radio frequency identification devices or RFID as they more commonly known.

At some stage RFID is tipped to replace the bar-code technology that we see and use to buy everyday goods in our supermarkets. The smallest RFID commercial tag is just 0.4mm which is thinner than a sheet of paper and is practically invisible. Current usage of RFID tags is primarily for tracking purposes such as that used in libraries, packaging, airline baggage and other uses such as tollbooths and animal identification.

The worlds largest retailer Wal-Mart is expected to make annual savings of $620 million (343 million) as a result of employing RFID tags on the goods it sells. According to market researchers Frost & Sullivan, sales of RFID tags should soar from $1.6 billion last year to $5 billion by 2010.

A UK stock I believe may benefit from the sentiment towards RFID tags is Carclo (CAR), which you should be able to trade on 40% initial margin or better.

The specialised plastics company recently issued its preliminary results for the year ended 31 March 2005 showing earnings per share of 3.9p versus a loss of 8.4p a share for the previous year.

The reason for such a turn-a-round is based on a significant rationalisation program at the company over recent years, combined with good performance from its automotive division.

Additional to this, Carclo received an offer to sell its card clothing business for 8.6 million, which should offset some of the 26 million worth of debt.

However it is the award winning Conductive Inkjet Technology, which is a joint venture with inkjet specialist Xennia that provides most of the excitement for the company. This allows for direct printing of metals with high conductivity, such as copper and gold on to plastic. Carclo says the level of interest from major players in the RFID field is high and expects commercial ventures to be signed during the coming year.

Carclo trades on a forward multiple of 11.6, which is about par for the engineering and machinery sector.

cheers GF.

Your not on your own Goldfinger, I have held these for a few months now.

Potential for RFID enormous, long term hold imo.

capa

Nice little move up today

I have a small stake

Baza

Moving up again, not much but its better than down.

cheers GF.

Just a snippet taken from last months end of year results.....................

The development of water soluble capsules for drug delivery is ongoing with our
partner, Stanelco plc. We are concentrating on increasing the starch content of
the capsules to allow us both to reduce cost and, more importantly, to
facilitate the process of regulatory approval. We are in the process of
presenting the capsule technology to a number of drug development companiesends.

Sounds like we could get some news out fairly soon.

cheers GF

Recent speculation about a bid for the whole firm. A little birdy tells me the big boys from Europe are giving the company the once over.

Hi Gf
Been on my watchlist for a while
not bought as yet but agree looks
interesting, and the sp is on the move.
I think you have found another winner
all the best
HUSTLER

Cheers Hustler.

Its a case of when, the boys from Carclo say?

cheers GF..

Point taken Gf.
Think i will have to come on board soon,
in the morning perhaps, if the sp goes up.
Wishing well
HUSTLER

a million shares (buy) just went through right on the bell ?

Baza

Yup Baza big stock building over the last 2 weeks, looks like we could have a bid here although I would prefer Carclo to remain as it is.

People still look upon it as an old metal basher which just isnt true. It forward P/E of 14 is way too cheap. Im adding by the day.

cheers GF.

PS, please take a look at its site to see the new tech products, UNBELEIVABLE.

cheers GF.

Hi Gf
I'm still not a player yet but
had a good look today and must say impressed,
feel tomorrow will join you
market being willing, you are
on a winner
regards
HUSTLER

A nice tick up on low volumes. I have also been adding.

I know someone who is very senior in the company that regulates the bar codes - I thought you might like to read his response.

"The market for RFID is growing fast - but not as fast as their statement indicates.

The Grocery sector reckons it will 2010 to 2012 before bar codes are replaced on consumer items.

The cost of barcoding a loaf of bread or a tin of beans is miniscule whereas a RFID tag still costs min 20p (each), which would increase the cost of a loaf of bread by a third. The industry is looking to get tag prices down to 5 cents but that would still rule its use out for small low cost items.

The grocery sector is concentrating on tagging cases (the boxes that contain the n loaves of bread or 20 packets of shredded wheat) and pallets to improve tracking, shrinkage and speed in the movement of goods from manufacturer to the back of the store.

Obviously the more expensive the item (e.g. consumer electronics, white goods, DVD's) the better the ROI for tagging.
But there is still very little implementation of RFID by major retailers. At point of sale Tesco has piloted RFID on DVD's, Razor blades & electrical goods - but has now put back all further roll-outs (including back of store) until the technology, standards and regulations are properly in place.

I don't think any company in RFID is making loads of money yet - but it's keeping us busy!"

Baza

Top notch info Baza. Im sure were on a winner here. A big one at that.

cheers GF.

Finished the day nicely up. Lets hope for more to come.

cheers GF.

Moving up on modest buy volume this morning.

cheers GF.

Mentioned as a stock ready to take off in Shares Mag yesterday

Concluded that despite the recent rise the share price is inexpensive

capa

Punted in shares mag again this week, they seem to have i hopes of this share, i need to take a better look.

It still looks like a winner Kivver.
unfortunatly not in myself as yet Should have been a couple of
weeks ago, but i feel it's not to late.
Regards
HUSTLER

Get in guys before its too late.

cheers GF.

I am a bit late GF i know.
Looking at to much elsewere,
lots of others looking to undervalued as well
will have to make a move soon i know.
But this one is very high on my list.
all the best
HUSTLER

Carclo plc
28 July 2005




28 July 2005

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES OF
AMERICA, AUSTRALIA, CANADA OR JAPAN

Acquisition and Placing

Acquisition of additional 20% interest in Conductive Inkjet Technology Limited
and 3.1 million Placing

The Board of Carclo plc ('Carclo') is pleased to announce today that it has
entered into an agreement to increase its equity investment in Conductive Inkjet
Technology Limited ('CIT') from 50% to 70%.

In our recently published Report and Accounts for the year ended 31 March 2005,
we reported excellent progress with the conductive inkjet technology process,
which uses digital inkjet technology to print pure copper directly onto plastic
and non-porous surfaces for use in a wide range of printed electronics
applications. The pace of development of this technology and interest from
potential customers has continued to grow throughout 2005 and the products under
development are approaching commercial application.

CIT has been developed as a joint venture company owned equally by Carclo and
its partner, Xennia Technology Limited ('Xennia'). Both partners now recognise
that CIT has entered a critical period in its development and it is desirable
for one partner to increase its level of investment and exercise control in
order to exploit more effectively the significant commercial potential of the
conductive inkjet technology process.

The key initial application of the conductive inkjet technology process is to
manufacture antennae designed for Radio Frequency Identification ('RFID')
applications. The RFID market is expected to grow rapidly over the next few
years as major retailers apply the technology to streamline their logistics
operations. A key barrier to the growth of RFID has been the cost of RFID tags.
CIT's proprietary technology offers a potential breakthrough in the cost of
manufacturing tags. A demonstration line is nearing completion and has attracted
significant interest from major international players in this market. RFID is
only one of a rich array of applications for the conductive inkjet technology
process.

Carclo has reached agreement with Xennia to acquire an additional 20% of CIT's
equity for 1.6 million. This will increase Carclo's shareholding in CIT to 70%.
A new shareholders' agreement will be executed confirming Carclo's management
control of CIT. As a consequence of this new agreement, the terms of licences
which will be granted to Carclo in the field of technical plastics and to Xennia
in the field of decorative applications of the technology will be formalised.
Xennia has been granted a warrant to subscribe for an additional 10% of CIT
equity which will be exercisable at a subscription price equivalent to 1.0
million if CIT is listed or sold before 31 March 2007.

The 1.6 million consideration is being satisfied by a vendor placing by
Dresdner Kleinwort Wasserstein Securities Limited ('DrKW') of 1,975,309 new
ordinary shares of Carclo with institutional investors at a price of 81 pence
per share ('the Placing Price'). In addition a further 1.5 million is being
raised by Carclo, using the authority available to it under Section 89 of the
Companies Act 1985, by the issue to institutions of 1,851,851 new ordinary
shares at the Placing Price to finance the further development of the CIT
programme. The 3,827,160 new ordinary shares (the 'New Ordinary Shares') issued
represent approximately 7.4% of Carclo's existing issued share capital.

The New Ordinary Shares will be issued fully paid and will rank pari passu in
all respects with the existing ordinary shares and will therefore be entitled to
receive the final dividend of 0.8p payable on 8 September 2005 to shareholders
on the register as at 5 August 2005.

Application will be made to the UK Listing Authority (the 'UKLA') for the New
Ordinary Shares to be admitted to the Official List maintained by the UKLA and
to be admitted to trading by the London Stock Exchange plc on its main market
for listed securities ('Admission'). Admission of the New Ordinary Shares is
expected to take place on 2 August 2005.

The acquisition and the placing of New Ordinary Shares are conditional, inter
alia, upon the placing agreement entered into today between DrKW and the Company
(a) having become unconditional in all respects and not having been terminated
in accordance with its terms prior to Admission, and (b) Admission of the New
Ordinary Shares becoming effective by 2 August 2005, or such later date (not
being later than 31 August 2005) as the Company and DrKW may agree.

At 30 April 2005, CIT had gross assets of 1.3 million and loans due to Carclo
of 1.4million. CIT made a loss of 63,000 in the year ended 30 April 2005 after
capitalising research and development expenditure of 1.1 million.

Trading at Carclo has continued to be satisfactory since the publication of the
Carclo Group's preliminary results statement on 13 June 2005 and the Board
remains confident in the prospects for the current financial year.

- Ends -

Good news. Carclo going from a metal basher to a new tech company.

cheers GF.

Well, a director buy today (7,500 at 88.5p)! I like it.

Cheers, Madison

When in doubt, ask!! I was a bit confused by an aspect of the Chairmans statement released in the RNS yesterday, so I wrote to the company and asked for some clarification.

Im very impressed at the speed, courtesy and usefulness of the reply which included copies of a couple of brokers notes issued after company briefings.

The most recent of these was from Brewin Dolphin and contained a number of interesting points:-

based on extremely conservative assumptions (as you would expect) they estimated a fair value for the current SP at 95p
this estimate included an assignment of 15p for CIT and the note says that this could easily be worth nearly double (29p) but they prefer to be conservative. NB this note was issued when CARs share of CIT was 50%
the valuation also used a notional tax charge of 30% giving an EPS of 4.5p for 2005/6 and 5.9p for 2006/7 (the real tax charge is expected to be 0% for 2005/6 and 20% for 2006/7 which would give an EPS of 6.5p and 6.7p in the respective years)
the valuation also specifically under-estimates the potential increase in profits provided by the new Technical Plastics manufacturing plants in Czech Republic (2) and China (1).
also deliberately under-estimated are the benefits from the automotive divisions new joint venture manufacturing facility in India which is on schedule to come on stream in October 2005 and could realistically cut costs by 20%

Ive looked back through the threads on a number of BBs but couldnt find mention of this broker note. So although it is July news, I dont think it is widely known and has not impacted the market (IMHO).

I think its extremely interesting that Brewin thought a conservative valuation was 95p including 15p for Carclos 50% of CIT. Of course Carclo now own 70% of CIT and therefore even conservatively that would be worth 21p and give a fair market value of 101p.

If we wanted to be less conservative but still not OTT, then the CIT value could be nearly doubled to 40p and that would give a fair value of 120p.

And of course the broker calculations used operating profit margins of 4.6% for 2005/6 and 5.9% for 2006/7 when the management target is to achieve 9%. And the also used EPS of 4.5p and 5.9p for 2005/6 and 2006/7 when even conservatively the realistic figures should be 6.5p and 6.7p for those years. I refuse to even write down what kind of fair market value those figures would lead to as Id be accused of blatant ramping.

What I will say is that it aint really surprising that in July there were 5 director buys at around 85p. After all they could justify such purchases purely on the basis of the information in the public domain.

Current mid-price 80p, conservative fair market value 101p to 120p - Im happy to be holding in this company and look forward to the market waking up to the extent of todays major under-valuation.

BWDIK, PDYOR.

camlad

Thanks for that camiladasi - very good observations. Re your "conservatively realistic" EPS figures perhaps they are cautious; Squaregain gives estimated EPS for 2006 as 8.23p.

Two things of potential interest to investors about this company's shares:

1) You can put them in an ISA
2) There is a dividend: 1.59% yield only at present, but could be 3.05% next year.
Besides the divi being useful in its own right, the fact that there is one at all may be taken as a reassuring sign.

I didn't even know about the divi when I bought these, so for me it's just a nice bonus.

Cheers, Madison

Hi Madison,

got my divi today - not a lot but every bit helps and as you said it is a sign of company confidence.

I've noticed some increased share movmenet on the stock this week, but unfortunately the price has dropped a few pence. Can't see why this should happen - the fundamentals are as good as ever.

Maybe the problem is lack of news flow from the company. Nowadays it seems that RNS or even better the run-up to an RNS causes an upsurge in interest. Whereas a company doing well and making profits is basically ignored on a day-to-day basis.

On the other hand when the real trading position comes to the market's attention, it should result in a significant SP increase. I'll just wait patiently on this one - I believe that it will happen.

WDIK, PDYOR.

camlad

No news flag coming up on the stockwatch despite this morning's news about a development in conjunction with SEO.

Cheers, Madison

LONDON (AFX) - Stanelco PLC and its partner Carclo PLC have successfully developed an edible, starch-based hardshell capsule for edible applications including dietary supplements and pharmaceutical uses.

Stanelco said it has been working with Carclo for over 5 years with the objective of producing an economically viable alternative to two-piece hard shell capsules made from gelatine.

Carclo Technical Plastics has now successfully manufactured capsules using a new polymer blend developed by Stanelco's subsidiary Adept Polymers Ltd working in conjunction with the recently acquired Biotec Holding GmbH group.

Work is ongoing to bring this new hard-shell capsule technology to market and Stanelco and Carclo are now seeking to work with third parties to optimise formulations, ensure regulatory approval for human and animal consumption and develop the route to market. Stanelco said this process is expected to take a reasonable time to achieve.

newsdesk@afxnews.com

Flag arrived!

Hi All,

Here's the bits from my website ....

-----------
Carclo and Aquasol jointly own a patent for drug capsules

Page 1, Annual Report, 31 March 2004, Carclo plc, Registered Office: Ploughland House PO Box 14, 62 George Street Wakefield WF1 1ZF T +44 (0) 1924 330500 F +44 (0) 1924 339900 W www.carclo-plc.com Einvestorrelations@carclo-plc.com .... For a number of years Carclos medical operation has been pioneering the use of water soluble polymers in fine tolerance injection moulded applications. Since 1999 we have been working with Aquasol Ltd, an intellectual property company specialising in water soluble polymers and recently acquired by Stanelco plc. Carclo and Aquasol jointly own a patent for drug capsules manufactured by injection moulding from water soluble polymers. The capsule has unique features which provide improved control over the release of drugs and tamper evident protection. In collaboration with Stanelco plc we now plan to increase our market and business development resources on this important innovation.

See the Capsule details here, with pictures, in Adobe Acrobat(PDF) format
http://www.aquasol-ltd.com/seminar%20articles.pdf

Cheers,
PM
http://www.stanelco.devisland.net/

Still very much keeping this one warm. Could be big news out this winter , even earlier I am reliably informed.

cheers Gf.

Recent news article from Fat Prophets web site.........

http://www.fatprophets.co.uk/content.aspx?page=Greyhound%2c+Fat+100

GF,

A lot of RFID competitors announcing tag price drops in the last few weeks, but the actual tag price is only one component of the eventual success of RFID. Effective software development and strategic vision by companies seem to be prerequisites of any mass adoption.

RFID Conference in Amsterdam next week.

Seems to me that the widespread roll-out of RFID tagging is inevitable and could start picking up pace in about a year.

Cheers, Madison

Thanks for that news Madders. Im led to beleive that Carclos tags are one tenth the price of any competitors so they must have really dropped the price to get anywhere near and what effect will that have on competitors margins. I also agree with your technical point.

Ill try and get some news from my man in the know over at carclo, my neighbour, I think hes in the pub thursday night.

cheers GF.

Ps , if you get any news on the conference would you please kindly post it.

Well this one as pulled back with the rest of the market but not to worry.

Ive heard management are meeting Unions next week at the older textile plant in West Yorkshire. Looks like the Belgians have again been in for another purchase.

cheers GF.

Happening on thursday.

Cheers Gf.

Looks cheap at the present price. Think I will have a few more, looks like previous selling bout is over.

cheers GF.

'Carclo PLC (CAR) said first-half pretax profit was 773,000 stg compared to 2.19 mln stg a year earlier.
For the six months to Sept 30, sales were 45.2 mln stg against 54.3 mln stg last year and the plastics and wire products company will pay an unchanged interim dividend of 0.4p per share.
Looking ahead, the company said that it continues to see difficult and uncertain markets in automotive components, both in the UK and the USA and will manage its cost base and capacity according to demand.'