Investment company which takes stakes in tech firms valued at £4mill.




11p to buy.

Is Tern PLC Heading To Zero? - By Motley Fool | Tue, 8th September 2015 - 12:57

Tern (LSE:TERN) invests in established, private software companies that operate in fast growing technology sectors and the company has become one of AIM's hottest stocks over the past few months.

Since the beginning of June Tern's share price has jumped by 170%, outperforming the wider FTSE AIM All-Share and AIM 100 indexes by more than 160%.

However, the company is shrouded in controversy, has a weak balance sheet and is still loss-making. What's more, according to my figures, after the company's recent placing Tern's book value or shareholder equity is around £1.5m, approximately 2.8p per share. So, the company is current trading at a price to book ratio of 7.9 -- a premium valuation for a loss-making company.

That being said, as an investment company, much of Tern's value is tied up in the company's investment portfolio.

Portfolio analysis
Tern's most significant investment is Cryptosoft. The company owns 100% of Cryptosoft, and this one investment accounts for 95% of Tern's potential portfolio return.

Tern's other investments are Flexian, Push Technology and Seal Software. The company owns between 1% and 0.5% of each of these businesses.

At the end of June, Tern valued its investment portfolio at £707k and since reporting this figure, the company has gone on to raise £720k before expenses through a placing of 6m new shares at 12p each. Management has stated that the cash will be used to provide additional finance for the existing portfolio, with the development of Cryptosoft being a top priority.

And according to Tern's press releases, Cryptosoft's product offering is already attracting significant interest. The company claims to be the only supplier with a peer-reviewed, market-proven software security product, for Internet of Things and Machine-to-Machine applications. Moreover, Cryptosoft is in the process of discussing major contract opportunities with potential UK and US customers.

However, Tern's management has warned that it may take several months before the first of these contracts is secured and revenues materialize.

Risky business
Even though Cryptosoft, Tern's largest investment, claims to have a one-of-a-kind product, there's nothing to stop competitors muscling in on the company's target market while it tries to secure contracts. The tech sector is notoriously competitive and firms need to have deep pockets to fend off the competition.

Unfortunately, Tern is strapped for cash. While the company may have just replenished its cash reserves via a placing, £720k before expenses is unlikely to be enough to help Cryptosoft repel larger competitors. With this being the case, I wouldn't rule out additional fundraisings and shareholder dilution in the near-future as Tern ploughs cash into its Cryptosoft subsidiary.

The bottom line
All in all, Tern should be viewed as a binary bet. If the company's Cryptosoft subsidiary makes it to the big time, the sky is the limit for Tern's shares. However, if Cryptosoft can't compete with its larger peers, Tern will struggle to survive

18.75p

Has reached bottom today with the intraday 17.25p, the retracement was a 61.8%, normally a bounce point, that so far has happened.


chart done yesterday

20.25p +1.125p

As expected has turn from red to BLUE

Have you notice on the trades front?
as it was moving higher the sell trades were less

since 12.44pm spread 18 v 18.75p

2 sell...........2 buys
3 sell...........5 buys
1 sell ..........7 buys
1 sell ..........5 buys
1 sell ..........9 buys
3 sells ........12 buys
at time 20.50 v 21p

Zac Mir has a 32p target.

Motley Fools have started to see the opportunity here.
Blue Sky Potential -- Saturday 19 September 2015

Tern invests in established, private software companies and its significant investment is Cryptosoft, the only supplier with a market-proven software security product, for Machine-to-Machine (M2M) applications.

According to Beecham Research, security is now the leading concern for users of M2M devices and the size of the market for security products is exploding. Based on the current rate of growth, the M2M security market will be worth $700m by 2018. Tern’s market cap is only £11m at time of writing, so even if Cryptosoft can grab only a tiny share of the M2M market, Tern could be set for the big time.

can-you-afford-to-buy-high-risk-plays-like-african-potash-ltd-tern-plc-gulf-keystone-petroleum-limited-and-lgo-energy-/

http://www.technewsworld.com/story/82522.html

"Existing security solutions were not designed to accommodate the massive scale of the Internet of Things," ZitoVault CEO Tim McElwee told the E-Commerce Times. "Moving forward, it becomes very important to create secure connections on the fly between IoT devices and cloud-based applications."

But Al Sisto will have been telling his audience that the Cryptosoft product is fully scalable.

18.50p +1p

is following yesterday's bounce from the lows with volume buying at that stage ( 150K )
a two days double bottom also @ 17.25p

TERN 18.125p +2.125p

a really turn around now
bouncing on reaching 14.50p support earlier low for some time

RNS out.

An article this morning about Intel directing its cash towards protecting the IOT. And here is Cisco doing the same. And of course IBM, GE, Microsoft, Google, Amazon etc.

If Cryptosoft have what we think they have then I can't see them last to year end. The big guys are splashing cash around trying to grab their slice of a very large cake.

bloomberg.com - cisco-bets-security-needs-of-connected-devices-will-fuel-growth

This morning reached a 78.6% retracement, should be the maximum retrace, mainly as at that price plenty of buying took place, now just up on the day wit level 2 of 1 v 2 @ 14.75 v 15.50p
also the price reached the lower Bollinger Band another bullish point

all in place now to go better from this point, there is once again interest on the shares, volume speaks over 670K, well over the recent take, is over the last 5 days and still 2 1/2 hours to go

Symantec introduces Secure One for security-focused partners
Oct 5 2015

HTTp://www.infotechlead.com/security/symantec-introduces-secure-one-for-security-focused-partners-34977

Tern updates on settlement of legal action

Tern Plc has succeeded in a claim that was outstanding prior to its reorganisation in August 2013. Tern has received payment of its claim in full of £37,500 and awaits finalisation and payment of the legal costs and expenses it incurred in prosecuting this recovery.

The settlement will be accounted for as an extraordinary credit in the accounts of Tern.

if £37.5k was indeed the full extent of the claim, what on earth was either side doing to allow it to get to court?
they must be absolutely bonkers!

steady rise since yesterday with good size buys today, so that will hold the bounce as is already the second day rising

ready to motor? VOLUME + UP = BULLISH

another rise this afternoon now 17.50p +1p after steady of small buys with no sells this morning

16.75p +0.50p
Cryptosoft announces new strategic partnership

Tern Plc, the AIM quoted technology investor specialising in the cloud and mobile sectors, is pleased to provide an update on its data security company Cryptosoft Ltd ("Cryptosoft").

Cryptosoft, a leader in policy driven data authentication and encryption services for connected Internet of Things ("IoT") and Machine-to-Machine ("M2M") devices, announces it has signed a strategic partnership with Device Authority Inc.

Cryptosoft will offer Device Authority's D-FACTOR(TM) M2M authentication to provide device-based security and device-derived cryptography for its IoT data security technology platform. This integration with Device Authority technology further strengthens Cryptosoft's offering of IoT native data centric security methods to the marketplace.

"Through this partnership we have a unique opportunity to offer a scalable, certificate-less, data centric approach to securing information assets at a data level within the IoT ecosystem. What truly sets us apart here is our ability to deliver this without the use of a traditional Public Key Infrastructure ("PKI").", says Jon Penney, Cryptosoft CTO and founder.

"We are very excited about our partnership with Cryptosoft. By using D-FACTOR(TM) device-authentication, Cryptosoft can deliver scalable, advanced security for its IoT data encryption service", said Talbot Harty, CEO of Device Authority.

The partnership with Cryptosoft advances Device Authority's market strategy to partner with leading IoT gateway and platform solution providers to provide device-driven trust and scalable security for the Internet of Things.

18.50p +2.25p

It seems a UN rns has got the share price moving after an earlier TERN RNS ..........

United Nations Partners with Tech Firms for Increased Internet Security in Developing Countries

Cryptosoft, a UK-based information security company, has announced a partnership with the International Telecommunications Union (ITU), a United Nations agency to establish increased global Internet security standards focused on the Internet of Things (IoT). The alliance with the ITU, will focus on education and training in countries with less resources.

Santiago, Chile, October 13, 2015 --(PR.com)-- Cryptosoft, a UK-based information security company, has announced a partnership with the International Telecommunications Union (ITU), a United Nations agency to establish increased global Internet security standards focused on the Internet of Things (IoT). The alliance with the ITU, will focus on education and training in countries with less resources.

“Developing countries are adopting IoT technologies at a very fast pace; securing these connections will help ensure improved global cyber security,” says Ryan Johnson, founder of Neo Globe Consulting, the technology consulting group facilitating the partnership.

Neo Globe will help jumpstart joint projects to equip global governments and telecom companies utilizing Cryptosoft’s security expertise. One possible project is the world’s most in-depth Internet of Things (IoT) cyber security profile and readiness survey. Another includes preparing cryptography-focused training labs for national cyber defense teams in developing countries.

“With the influx of Internet-connected devices impacting our daily lives, it’s crucial that security standards are put into practice,” says Al Sisto, the Chairman at Cryptosoft. “Users should feel at ease that their personal data is safe, no matter where in the world they live.”

Cryptosoft has joined the ITU as Associates, particularly to work with ITU-S, the organization that sets telecom standards, and ITU-D, to help find ways to use information and communications technologies (ICT) for social, economic and human development. Cryptosoft CTO, Jon Penney, will be representing the company at the ITU Internet of Things Forum on 19th October.

Cryptosoft focuses on creating trust in IoT transactions through safe connections between machines. This is called machine-to-machine, or M2M communication, and is the basis of how Internet-connected devices share information. Some examples of M2M might include a smart watch communicating health data to an insurance provider. Or a connected refrigerator might automatically order food through an online grocery store.

“All industries—from energy to banking to retail—are being impacted by the Internet of Things” says Johnson. “Privacy and security are major concerns, which is why partnerships like ITU and Cryptosoft are so critical.”

The ITU is a 150-year-old organization that helps set standards for telecommunications technologies and supports development of telecoms in underdeveloped countries. ITU, based in Geneva, Switzerland, is a member of the United Nations Development Group. ITU’s membership includes 193 Member States and around 700 public and private sector companies as well as international and regional telecommunication groups.

About Neo Globe: Neo Globe Consulting provides business development, qualitative market research, corporate development, market expansion, policy advisory and market intelligence consulting services, primarily serving the information technology and telecommunications industries. We rely on an extensive network of ad-hoc consultants in many fields and numerous countries to give the expertise our multi-national clients require for the strategic expansion of their business. Find out more at www.neoglobeconsulting.com.

About Cryptosoft: Cryptosoft is delivering trust in the Internet of Things and M2M by simplifying the processes that a company needs to go through to deliver a robust, scalable and easy to use encryption service. Through the Cryptosoft platform, we provide our customers with dramatic and disruptive capabilities to secure their most important asset: their data, as it moves from device to device.

HTTP://www.pr.com/press-release/641389