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5 MMs on 16p now. I suspect that the price will be walked back up again once those Rollovers check out.
The AIM loves a winner, once 5G kicks off and Ethernity start securing mass deployment contracts Ethernity will be the angel of the AIM.
2 tiny buys and it's blue?!
Yes I think your comment about the mood of the market is spot on. For some reason sentiment is not our friend - the brief bit of attention we had from the twitter crowd has now passed .. frustratingly people like riddler have time horizons in the days rather than years so are already off chasing another rainbow. As you've also mentioned, AIM is a difficult market and can be tricky to access for foreigners. There are also too many companies imo..900 or so listings is too much for people to analyse. Anyway, rant over .. is anyone else signing up to attend the virtual AGM?
The value of the company and therefore the share price will determine the threshold for dividends, how much can they take off the balance sheet if the company is valued at 50m, probably 5m tops. . The share price is important to me but not because I ever intend to realise it. The market cap needs to increase significantly to facitate a worthwhile dividend.
I see Ethernity generating the most once 5G is deployed globally. That will be another 10 years. If I realise a share price of even £5 I will be selling it prematurely as dividend payments could achieve that over a couple of years.
As a measure the share price is all we currently have, it's what people on this board seem to judge the company by. Personally I don't get it but maybe it's a British thing. If the share price is low it is not a reflection of how the company are doing but it represents the mood of the market. A market that has nearly no understanding of the business Ethernity are in.
The share price is only important to me if it is low and I have funds to buy. When it comes off the bottom I'll leave the buying to others.
If you're bothered about the share price why do you keep mentioning it?
3:1 buy to sell ratio. PEEL dropped 16-15 which triggered a couple of nuts.
9.23am trade in red was a buy.
Alco there are some AIM investors but the majority are just gamblers looking for a 5%+ score. The market puts off many foreign investors and indeed it is very hard to buy on the AIM from abroad.
Yes nice find and Ethernity are from the 10 the best value by far. That is largely because it comes from a almost zero market position. You pay almost nothing today for the products, research and market position. It is crazy that it's valued like this but here we are. I am much more comfortable here than in a company with any future success priced in.
China 5G is gathering momentum, after China we will see the rest of the world follow over the next 10 years. I am happy to hold every share all the way through as dividends will be huge. Profits will come from 5G Telecom connection and from new markets created by 5G. It will replace many traditional markets.
Hi TL I'm A UK based AIM investor with a substantial holding. We do exist and some of us can see long term potential. Sometimes the AIM throws up amazing opportunities for those with a longer term view. I came across this in early 2018 and built my large holding then at 18p up - not easy with such a small free float but I was scanning the micro caps and this stood out like a sore thumb. You've pretty much been with me all the way and have provided great insight which has endorsed my own initial analysis. Despite recent all time lows I don't think we've ever been better positioned. I've recently been adding and will continue to do so with small nibbles here and there.
It won't take many at this price to substantially increase the price. I know 3 Israeli investors who have taken 150k each since 12p. I don't hold out much hope for the AIM investor but I believe that we'll see more new investors taking a position despite the AIM listing.
Ethernity can only make themselves as visible as possible now and wait for the wave.
Phew have had it with the heatwave , this UK man was not built for it so it makes me extra moany! A great post TL you certainly Instil a lot of confidence in me as an investor here. At least some of the herd must see what enet has to offer soon before it’s too late for them! Storms on their way
Yes I think it was about long term predictable contract secured revenue that will allow for long term dividends.
Another great summary TL, thanks. Looks like you got cut off mid flow at the end....
I guess that the main risks are in market share for Ethernity.
Just how much of the huge pie will they get?
Currently there is no pie so it's pointless looking at current income or current contract wins. That is simply a distraction right now, yes it provides some tick over funds but nothing else. The prize is in mass deployment.
Will there definitely be a pie?
Yes for sure, China are heading towards mass deployment driven by Covid 19 stagnation. This has accelerated government urgency and the industry is responding. The rest of the world will follow. Currently there are no commercial true 5G deployments. Despite a city block somewhere having 5G speeds it's not 5G just a sped up access to the network.
Will Ethernity be invited to the table when the pie is served? Yes absolutely, Ethernity products will form part of the standardisation of how globally 5G will look. Even American companies will be in this process, they cannot afford to be excluded.
Are Ethernity products unique or are there many to share this huge pie with.? There are other providers however none offer the performance and versatility of solutions base on the ACE-NIC100. ACE-NICs provide acceleration for essential network virtualization functions, improved performance, monitoring, load balancing, fault management, and security, all at a fraction of the CPU overhead. Router-on-NIC Layer 3 switch-routing functionality differentiates the ACE-NIC family from other SmartNICs, which only offload Layer 2 network functions.
When will this start?
Currently the pie is baking, it will need to cool then served. Telecom in China are currently evaluating how they will connect and add value to services for their clients. They will all go down the same road but may use in-house code or opt for a off the peg network platform. Certainly we'll see and have seen vendors invest heavily in developing their own products to work on ACEnic-100. So mass deployment is flagged for H2 2021, it will turn into a race to market and we can expect a feeding frenzy as crunch time looms.
So I think that it's given that the world will not change direction and 5G is on it's way now. So what are the risks now?
Ethernity raised a small amount of cash and linked more to warrants. The warrants at 20p triggered at 30p will definitely be needed. We can in my opinion expect to see that in the short term. The requirement for the second amount depends on timing but the trigger is set and live for 12 months. If in 12 months this share price is not several times the trigger price something has seriously gone wrong.
Looking further forward. 5G fixed and mobile access is a open door for Ethernity. It opens the edge products and all types of flow control products. With 5G Ethernity has a huge market to sell into. A very small amount will be direct most will be through regional tier 1 and 2 vendors. Ethernity IP will be mass produced by many vendors under licence with initial and ongoing royalties. This will sec