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Alco me too. I never dreamt that I would get the opportunity to hold so many. The only negative for me is the AIM and UK investors.
I am an investor in people normally but I saw this developing January 2018 and I have been researching ever since.
Very excited to see where we are at the end of 2021. Fully loaded and I'm in no rush. All the ducks are lined up for me.
Alca
I believe that they have a very realistic and tight grip on expenditure. Clearly if the don't make the warrant thresholds then something has gone very wrong. They have recurring revenue coming in and project 2m of additional income from existing avenues. That is a significant increase from the previous year.
In addition the last few lines here points to immediate opportunities.
"The increased drive from the Chinese markets, focused on building a 5G mobile network based on NFV, was the sign we have been waiting for over the last two years. It is based around the building of the edge compute virtualised network together with a need for extensive performance, for which Ethernity technology is the best fit, providing greater value added solutions that are appreciated and demanded by our customers. We have therefore taken the strategic decision to focus on porting the ENET flow processing features on the ACE-NIC100 to accelerate performance of the 5G UPF data plane. This has resulted in multiple engagements and design wins for our ACE-NIC100 during the first half of 2020 with the potential onward conversion to multiple delivery contracts during H2 2020 and into 2021"
Lets see how that goes
I think they've got the cash burn down pretty low .. how low we will have to see at the next financials. The small investor was actually fairly well treated in the recent raise I thought - I bought some at 12p and am hopeful I'll get to exercise my warrants as well. If they do have to do another raise next year I'm sure we will not be forgotten.
All discussion at present should be around cash burn. The product and the opportunity are irrelevant if cash runs out or if there is another placing and the small investor is sidelined.
To be clear my targets are well above 40p. I believe that we can see a dividend and share price value well over £10 as 5G ramps up. Again that is not the 5G network but the multiple services connecting to 5G. The network is the enabler both mobile and fixed. More compute will come to the edge, the landscape will change beyond recognition.
Fairview it's first 5G then edge. It is not about deploying 5G but about Telecom connecting to 5G. If you imagine 5G is a rail network 5G is the track and Telecom run the trains. Ethernity will allow the Telecom to track their trains, run the points, count the passengers and see in real time where all their trains are. Ethernity products are so efficient that they can have 80% less trains and carry the same amount of passengers.
Funding won't be a issue with the warrants triggered. Even with half the warrants they will be fine. If the share price doesn't exceed 40p in the next 12 months 5G will have been shelved and the world will have ended. Zero chance in my opinion.
Ethernity has produced an array of products for Edge. Saving, power space and speeding flow. It is clear that edge will become more important as 5G drives user cases.
We need to get away from the media view that 5G is all about download time and speed. It's so much more.
Settling fees due to an advisor . Mkay... let’s get them deals cooking now please enet . GLA
Also they don't need any more funds. The route to cash positive is very clear. Overheads are fixed and contained. The products are ready to go and easily customisable although the beauty of standardisation is there will be very little adaption. Just different billing counters and any local quirks. Ethernity won't have any tooling or production costs. In fact I see very little opportunity to increase headcount or costs. Many of these products are virtual and have a 100% margin.
Loss not liss obviously
Fairview
The reason the company hasn't raised more funds is that that the management and insiders have nearly 70% of the shares and do not want to be diluted to much lower levels by raising say £5m
from a big player(s).
It is a tightrope but the recent placing saw management stomp up enough cash to keep its
% holding intact which is a positive.
It's a classic risk reward investment in a tiny minnow...maybe 20 times gain or a big liss
You take you chances and ride the roller coaster or go somewhere else.
Not for the fainthearted but I am in big.
Appreciate the replies Tracylied and dallo.
So what I'm getting from this is that Ethernity have valuable tech but the funding situation is still very precarious. The fact that commercialization has been pushed back due to circumstances beyond their control means that they are now walking a financial tightrope. The question in my mind is why aren't investors with knowledge of this industry providing more funding? Are they really hoping the business runs out of cash so they can snap up the IP on the cheap?
Is the opportunity for Ethernity all about 5G? Having a hard time getting my head around some of this stuff as I'm no IT boffin.