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ENET already know what they intend to sell in 2022, as they’ve already told us:
From Dec 14th
In addition, given the expected ongoing components shortages, the Company has purchased and secured sufficient critical components for its 2022 system solutions delivery (UEP and ACE-NIC100 products), and is in the process of securing all components for the mass production of our UEP products targeting innovative solutions for the existing wireless connectivity market, to safeguard against delays in 2022 deliveries.
So I don’t buy that nonsense that it’s difficult to forecast etc as they’ve already told us they have forecast for 2022 and purchased sufficient critical components on the back of their forecasts.
So how comes they won’t share their forecasts with their shareholders? (Via a brokers note, which is the only way to stay within the rules)
I’ve got a strong feeling if they do put out forecasts they will not be genuine, ie reflect what they’ve ordered. I suspect they will dumb down any forecasts , say a measly $10m or something like or less. First option will be to see how long they can maintain the status quo and get away with saying nowt.
I’m watching them like a hawk, and if they dare come out with ‘exponential’, transformational’ or ‘ will meet 2022 growth plans’ I will be onto them in a shot.
ENET, you have been warned!
ETH.
As someone who works in tech FP&A I do have some sympathy here.
- There are a lot of binary decisions
- A lot of reliance on partners and customers "getting on with it" like tarana seems to be doing, rather than signing and waiting around
- Even if ENET have their purchasing / operations well controlled, shortages elsewhere in the total solution may result in delays
- With what is hopefully "exponential" orders / revenue the start date is key to the level on a few quarters time and a particular full year
Hopefully as they build a portfolio of extensions, new contracts, on going support revenues, cash / revenue up front on design wins forecasting becomes much easier.
However if they state they guarantee they will hit objectives in 22 and 23 these need to be hard $ ones and not fluffy marketing stuff, and need to be communicated.
i do think we know something of their growth plan objectives.
the main objective is to sell complete solutions, from the tower to the core network.
i can understand their reticense to be too specific, they have had to reinvent themselves 2 times to be market competite , all of which cost money to restructure and tool up. If they are very specific about objectives and dont meet them, they will have been seen to slip up again.
GtheG
I prefer to contact the company direct on these matters rather than a BB and I have done so and my thoughts have been received and acknowledged. There is some indication they may act on some items, we will see.
I think it’s untenable and blatantly ridiculous to tell investors in the 14th December update that:
‘Ethernity will meet its growth plan objectives for 2022 and 2023 and is well positioned to become one of the key solutions providers in its marketplace’
Without letting us know what those ‘growth plan objectives are’.
If they don’t let us know, they are treating us with utter contempt. To put out statements like that with no explanation is a joke, quite frankly. My concerns are not limited to that, but I’ve no wish to write another marathon post. There’s plenty of companies out there that I can invest in that treat investors in the correct manner.
Clearly the IR policy is not working as the m.cap is a ridiculous £25m or so, what bigger indictment could you have?
Still, if investors hard are happy, then I’ve no wish to push a rock up a hill and if ENET won’t change I will simply move on to pastures new
atb
uhlf
@u
On the grounds ENET apparently sometimes read these boards - maybe create a new thread 'My Ideal ENET IR Strategy'
Give a very detailed list of what you would ideally like done - and maybe what you would be happy with.
That post will be at the top and visible. People can chip in with ideas.
Even if a new IR strategy is not IMHO not that important right now, I concede that moving forward out of the pandemic and into more orders that they should consider it if it makes some investors more comfortable.
skid35
Thank you for your efforts.
I would urge anyone else who has concerns re the poor IR, poor communications, no forecasts in the market to make their views known to the company.
Otherwise there’s little use complaining on here!
atb
uhlf
Capt Hindsight appears to be knowledgeable but in fact he is learning the on-the-fly and quite clearly does not have a background in the technology. Complete BS'er. Does anyone remember the conversation on ADVFN about spectrum and the number of mast units sharing that specific spectrum? I did actually check with Tarana, you only add one extra layer and it is in a different spectrum and is only max 2 per quadrant. So he was talking nonsense - I couldn't be bothered talking to Capt Hindsight about this any further because it is like talking to a braying donkey. He also doesn't seem to get how ENET own IP in the Tarana system - someone asked and he kludged the answer. The real world number of connections per unit? etc.....he got it all wrong. What he has done is done a reasonable job of memorising most the ENET website - that's it.
I think he added to the Tech conversation, but as always an investment decision needs to be owned.
Nice to see the thread here now being picked up with very direct questions on advfn.
Agree with greg, he is a distraction and will soon have a little hissy fit on advfn.
I bit my tongue at the time on his very direct insults to me, now see that a bloke with a part share in a couple of burger vans and back street hairdressers shouldn't comment on international corporate management.
The thing that clouds the judgment with this particular poster is their seemingly impressive knowledge of the tech. I really hope they are clued up on that at least. Glad to have January done. Have Good weekend y’all
as per my previous comment .
Every single share with is augmented by comment that a contact in the company is known is the most bearish sign ive ever known. Every single share ive owned where a so called ‘leader’ , starts to say he has a contact in the company and he is getting information from that source , has tanked in value. I nearly lost everything by following such posts.
My thoughts are that Captain Hindsight is now a drag on the price.
BS'ers like that are a red flag to some new investors.
He is completely adrift from reality. He's also apparently sold at the top and bought back in much cheaper - it's very easy to do you know.. Listening to people like that is dangerous, he is apparently cruising the Med yet spends all day analysing the minute price movements and making up stories. He is the very reason why people write DYOR at the end of a comment!
Still keep an eye out on advfn for our old friend TL.
In the last month he has stated as fact ENET have at least two multi million $ new orders, including the server DU which I believe would double the share price on its own - if correct would both be rnss.
Now these haven't materialised as yet he now says new deals are irrelevant for h1, it's follow on orders that count.
It's the absence of consistent IR and communication which allows this to continue.
As I've said before I believe tarana underpins the current t market cap 100%.
Uhlf.
I have written to Mark, David and the chairman before after the cash raise and will write again - wasn't fantastically happy with the response.
The lack of an IR strategy prior to this year is a lack of an IR strategy, the lack of an IR strategy in 2022 is different as it represents a lack of news and progress to talk about in what should THE year.
Steve17
Not retiring but will take a back seat for a while now I’ve said my piece.
I have some serious thinking to do. The complete lack of IR strategy and no forecasts in the market give me something to think about.
atb
uhlf
Please don't retire ulhf, your posts are a value to BB information and morale.
Would be nice for ENET to eventually get a recommendation like Calnex was tipped recently by The Motley Fool. Im not invested in Calnex, but I always look at their RNS for any indication to general sector sentiment.
https://www.fool.co.uk/2022/01/24/3-top-metaverse-stocks-id-buy-today-for-2022-and-beyond/
Well, I’ve aired my views.
There doesn’t seem to be any real appetite for investors to take any coordinated action and that’s fine.
I will continue to make representations as and when and I urge others who have concerns to make their views known to the company.
Mark’s email is on the web site but here it is anyway.
mailto:MarkR@Ethernitynet.com
I will now retire gracefully!
GLA
uhlf
Cheers for your take GtheG.
I’m not selling, but my patience is not unlimited.
I think a lot of people are missing the main point re brokers note.
It is this.
ENET are not allowed to put forecasts into the market.
The only way to put forecasts into the market is to use a broker. Wether house broker or paid for research, it makes no difference, ultimately it’s all paid for.
Now we all know the brokers note is derived from discussions with the company, but the figures are always something the company is happy with, even if not their figures per se.
The last few years there have been fugues in the market to measure ENET against. This year, so far, nothing.
So when a company tells me their going to meet their growth objectives, I feel it’s perfectly reasonable to say what are those growth objectives?
There’s trust, blind trust, stupidity. It can be a fine line.
I’m afraid that , like it or lump it, ENET are a plc and hsve duties to discharge. They can do the bare minimum and if you’re happy with that, fine and dandy. But I would like them to embrace while heartedly with being a plc. Take your investors with you, we will all have a more pleasant journey, albeit there will still be bumps and twists along the way.
I’m not suggesting rigid quarterly reporting btw. I’m suggesting, as appropriate, reaching out to investors. It could be a virtual agm with q&a session. It could be after an important contract has landed a mind a web cast would be the ideal way to flesh out a rns and answer investors questions.
In the scheme of things, it shouldn’t take much in the way of resources and the regards, from a loyal and attentive investor base will in any case far outweigh any time and costs spent.
atb
uhlf
Hi
No, what I am suggesting is people should sell if they don't have any confidence in the management and the story coming good. The fact that I have 100% faith in the management does not mean that I think there is zero risk. I have done a lot of research very happy to take on the risk reward.
Broker notes: in my experience these are often works of fiction and following them is an easy way to lose money. Of course there are exceptions. But, when the company has to stump up to get them written there will always be the question of impartiality.
Having said that, and reflecting on what I said overnight, I personally wouldn't change the IR strategy.
The problem is we are in the middle/end of a pandemic, so if we did have quarterly statements about what orders actually came in or not, then any delay would spook some people into selling. As far as I'm concerned we already have sellers that have bottled it based on delays that are nothing to do with ENET - yet still want to hold them accountable. I think some sellers are caught in a pre-pandemic mindset and have not adjusted their risk reward analysis accordingly. So why update when you know some investors will sell/gripe for arguably no good reason? Personall I don't think DL is too bothered about where the SP is right now - why should he - it is all about where the SP is in the next couple of years.
Ultimately, if I was DL I would be focused on the investors that have the most trust - those investors don't need the constant updates - they believe the story and they're going to wait it out - so why do a lot more IR? Therefore, more IR possibly not particularly high on DL's to-do list when his focus is on making cash?
Hey, I'm just one person. It seems opinions on the matter are equally divided. Certainly not against any of the suggestions.
If there were updates and more people sold, or for that matter bought, then great. But, ultimately it makes no difference because I'm holding for a number years and the only thing that is going to get the price up are the hard facts of breakeven followed by fat profits.
I am confident that will happen.
I think there may also be an element of what people are used to. Personally, my last x10 bagger was achieved with a company that had an IR strategy that makes ENET'S feel like an hourly bulletin. Other companies are more active, so I do understand why some people would like a more structured approach.
What is actually missing? Slide 8/10 is a forecast? And the RNS updates have included revenue forecasts/updates. And some people have made ENET accountable?
Having said all this... people are different... I am not against the idea of more IR if it makes others happy.
GLA - I really must dash.
GtheG
Just a quick point. I like your posts and we might have to agree to disagree.
But your suggestion seems to be that rather than try to improve the quality and overall competence of the IR side of things that one should just sell the shares. Now that’s an option all of us if we come to the conclusion that company has too many traits we don’t like. But I much prefer to see if the company will do the things that are asked instead of just walking away, that seems a bit defeatist to me.
atb
Thanks for your comments.
Just a couple of quick points
Re broker, I’m suggesting getting a suitably qualified person to do the job, and more than one note. The main reason for the note is so forecasts can be put out into the market, otherwise there is no way to marry up ENET’s managements growth plans that are ‘transformational and exponential’. They need to be held to account, no ifs, buts, excuses.
Second point, in no way am I suggesting fluffy news, broadcasts every 5 mins, hand holding etc. What I am suggesting is a joined up IR policy that includes, for example, quarterly web casts with Q&A at the end. Other companies do this very successfully. I can’t see why ENET can’t do it.
I agree they can’t issue mega $m news till they have it, but they can do a helluva lot more to prepare the ground, to tell us what their expectations are, to inform us about contracts landed, etc etc.
If folks are happy, fine, but I think their performance is very poor and we deserve a lot better.
01234 does he??
Researching is not being all the day writing here and saying the company can do unrealistic numbers in sales, given that they have $1m in inventory, $5m cash, and low manufacturing capabilities.
Research is going at the ground, speaking to people, employees, customers, competition... mgmt... And try to see things before others
I still watch eneto on the dark just bc I have warrants and will be interesting to see what they execute in 2022! Lots of promises were made...!
Cheers
Fantastic effort there uhlf thanks for that. It’s funny I imagine TL has done a lot of research in his time Sergio. Doesn’t stop him from being a multi account wielding lying lunatic though . Atb
Well done uhlf. If you had done that when the update was out you would have saved 10p per share.
Keep researching, researching, researchiiiing!
Greg.
Whilst I have confidence to say "total trust" is foolish. Confidence is based on the experience of the management team and what they have achieved before, an understanding of the proposition and a strategic understanding of the impressive orders they have won.
Yes, I do read everything and have my own spreadsheet modelling all the info. But they need to follow with hard $ orders so they show they are on track.
Do not agree with uhlf on broker, some spotty wet behind the ears twenty two year old doesn't really add anything to what the company can provide.
Key is enet telling us their RNS strategy is - what is it is not released (e.g. Value of follow on orders released), consistently timed investor meets, non investor technical zooms and c###s on blocks stating their 2022/3 targets which they state they are 100% certain of hitting.