With many, many thanks to the CEO’s from Zephyr Energy, Power Metal Resources, Scirocco Energy and SpectrumX who entertained and informed us at last night’s investor event. To see their video presentations view here.
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It's amazing the way enet stays under the radar. Some shares just go stratospheric for no obvious reason whilst some do nothing. There may be a light bulb moment at some point but I wouldn't like to predict when.
If tomorrow doesn't bring +20% this share is broken. The price is so far from anything that values the opportunity I guess that it must look to some too good to be true.
When a share fails to achieve fair value over a sustained period it's easy to think it never will.
Buy, hold and have faith that this can't stay hidden for much longer.
Sergi, just to confirm this guy is not an analyst, he is retired, runs a portfolio and has the twin petes weekly podcast in the uk, I occasionally listen on a walk as it's like a couple of guys chatting investments over a beer down the pub.
He is a bloke who clearly enjoys researching companies (a few hours a day) and running a portfolio is a hobby as well for monetary purposes. He is however focused on ftse 100/250 and was surprised he even gave a tweet on ENET, although clearly not from a position of knowledge even though he worked in Fujitsu in IT. Hopefully he will do so more research and talk about ENET on his podcast.
Thanks for the reply TL, appreciated
You’ve obviously studied well , yes I can see your background must help.
I’m pleased this forum has had the benefits of your undoubted skills, thank you.
My background is investigation both forensic and criminal. Skills learnt have really helped here. Actually some of what we see now I saw in January 2018 but not much. I have been ahead of the curve and now I can see round the last bend and right down the straight
It doesn't matter what the subject is if you study and find well placed people you can learn a lot.
You could well be right TL, I struggle to get my head around all the acronyms. Think it’s best if I stick to broad picture stuff, as anything more in depth and I’m struggling. I’m sure I’m not the only one. I do, however, grasp the scale of the opportunity here and ENET’s fantastic positioning to take advantage of it.
Out of interest, are you self taught in your knowledge of all things 5G/Networks etc , certainly you have a great ability to explain it to the less technically minded of us. Feel free to ignore, just curious.
I rarely look at advfn but there's definitely some confusion there.
Tarana and Ethernity has a wireless broadband product. It's currently aimed at the service providers in the domestic market. This is home Internet.
The UEP-60 and 300 in the Indian Contract is a virtual Cell Site Router on fpga to run on a server. This is 4g and 5g which gives a massive market as much of India is still 3g.
It means a Telco investing in 4g can step to 5g with the same kit although they may (will) need more density for 5g.
There's a suggestion that the two are in competition, absolutely not.
The bonded technology from the Ethernity patent has just started to deliver. I suspect that looking forward most of the data connections will be wireless. The ecosystem has many opportunities for wireless and each is a new Ethernity product. Back,mid and front haul. Indoor units (just announced), Tower to Tower, mobile Tower for events capacity. Satellite to Tower, Satellite backhaul.
Please feel free to add. Really I think that we'll see Ethernity bonded wireless in minimum 4 processes from data in to data out.
This one patent could keep a business in R&D for years. What's it worth? $100m, $200m.... currently valued maybe $5m.
The more product it generates the more it's worth. It's unique to Ethernity, the market is buying it and the timing is perfect.
Even with rubbish IR they will still be hugely successful.
I think that it demonstrates the versatility of this UEP product. Ideal for wireless backhaul here we have it adapted forward in the ecosystem.
It's very clear that actually there are very genuine Open providers. Ethernity are unencumbered and leading.
The share price disagrees with this but take my word for it Ethernity are way out ahead in UEP and DU. £2 now I wouldn't be selling and some losers are checking out for peanuts.
I didn't expect Ethernity to be involved in radios but here we are. More money more money more money.
I was expecting your comment Tracy haha.
Yes, I mean, is not DU/UPF or ACE NIC card
Sergi was that a typo. The contract "non 5g" this most definitely is a 5g product.
I agree that the margins will be high. Like Tarana this is an Ethernity invention, a product of a problem solving approach to deployment. They identify the bottlenecks and solve them. This is why they are unique. Both the DU and UEP go way beyond the boundaries of the product.
In the DU they house some of the CU challenges like IPsec. They are so smart with features like secure tunneling.
The UEP-60 is a product but here they have customised it of this indoor unit application. This is the giveaway as to why it's 5g. This is effectively a indoor radio set-up. So an airport, lots of barriers like walls, signs etc. Outside 5g won't penetrate. So rather than run fibre they set up say 50 radios and connect using this kit to multiple DU then they network to the CU off site then by fibre or wireless to the network.
The other significant deal for me is the Indian venture. Yes delayed a bit but they have a good head start.
I think that sort of comment re the tweet is typical and understandable from folks who’ve not looked at ENET in any depth. That’s their loss, although it’s fair to say the tech is not the easiest to understand and there are no current broker reports outlining the investment rationale and some forward numbers. I’ve had more or less the same response from other experienced investors, so something, imo, is missing in presentation/ir. In fact it has to be, otherwise we wouldn’t be sitting at this absurd m.cap.
Good thing is the current level of sp offers exceptional and relatively low risk returns, imo.
Itching to buy a few more, I need a round number and currently it’s a horrible number!
Hi Sergi, good post thanks for the update. I also saw that tweet you referred to - seems a very lazy thing for him to say. Clearly hasn't looked any further than the basic numbers, maybe he's not familiar with analysing tech companies..
Good PR from ENET yesterday. I personally congratulated the team.
This deal is important not only for the numbers by themselves, which are very significant but also because this deal plus Tarana are starting to de-risk the investment and showing execution, which is what can move the stock right now (trading at liquidation+premium and not EPS discounted back). Also, this is a non-5G deal which is the core of my investment thesis.
That particular deal is significant because it is a demonstration that the company is succeeding in their expansion to becoming a provider of advanced network solutions (hardware, FPGA code and licensing payment per software). I think that the margins here are significant and higher than Tarana probably.
And also I think that this PR will help to relax this chat, something that was needed.
Till now, Ethernity is delivering according to the plan, no doubt.
The results from Silicom were good and most of the 5G revenues are expected well into 2022 and 2023, so the same for Ethernity. SILC is growing mostly from the legacy segment and SD-WAN, where ENET has some business as well.
I hope the next 6months will be very interesting for us and with lots of updates here from Ethernity, both about China and US/Europe 5G businesses. Maybe, also from licensing. It is clear that H1 revenues jumped YoY and that will need to be explained at the interim report in September.
I still think that revenues for this year will be a miss and 3.5-4M due to the 5G demand showing at the next year + the components shortages.
No need to worry about the stock, I think the market is just in a consolidation phase and the next time we move ¿in a few months? we are going to double the price from here. 90% of the returns are obtained from the 10% of the time.
Just look this, analysts completely misunderstand Ethernity... what a joke. The reality is that Ethernity is now a better buy at 40p than a few months ago at 30p or 10p - less risk, significant and very clear upside. https://twitter.com/wheeliedealer/status/1421012638364995591?s=20
OK so I am surprised by the scale of the opportunity with the UEP. This contract is really using it in just one of several functions within a ecosystem.
There are multiple opportunities for wireless especially within private networks. The Ethernity solution really is another level of function that will not be matched without using the Ethernity patent. The radio vendor is doing just that with this secure indoor unit. Others will do the same.
We can expect this vendor to exceed stated volumes, Ethernity are very careful with forward looking statements.
Trying to identify who it may be leaves a handful of options. All have thousands of installed units. It's very likely that this radio vendor will launch immediately they have everything in place and sales will be rapid.
Indoor units are really one of the last pieces of the Jigsaw and the Achilles heel of 5g.
The Ethernity portfolio is exceptional. The market is waiting for these units.
We'll have the same scenario with DU the first of which will be ready for real deal trials in a few weeks.
18 months ago it was about UPF and aceNIC acceleration with 3 Chinese mobile providers. Now that's 5% of the opportunity.
UEP and DU are the stars right now but Tarana is still a huge deal
Re ‘exceed wildest dreams’, I can see that given the developments over the last year or so, UEP, DU products.
The market cap is so tiddly that anyone looking briefly at ENET would be forgiven for thinking there’s not much here.
A good end to the week, let’s hope next week is another good’un.
Website update - quite useful links to the parts mentioned in the story.
Anyone not holding as many of these that they possibly can is insane. It's so cheap, doesn't even value one early stage product. Ethernity has many in trials or production with big OEMs, vendors and service providers.
OEMs are global markets, vendors are either China or global. Service providers are in big builds, no small builds on the horizon.
I guess you either see the obvious or not. Some of us saw it two years ago and to be honest it exceeds my wildest dreams. They can be pretty wild.
So International Wireless vendor developing a hardened (secure and robust) micro/Milli product. Only really a free choices. No small names leading this game. Thousands of radios installed on each who can be offered this upgrade.
Like Tarana, and the Indian Contract Ethernity is the fairydust that makes their product the leader. We are talking each year maybe 400000 radios, wireless backhaul on many. Now we are looking at networks of radios on networks of DU. Networks of DU on networks of DU. This is an indoor unit in micro and Milli so we are taking short range, no penetration 5g enablers. Units could be 100's thousands a year.
Again small to start but 2022 $2m maybe beyond really it will explode.
1639 did the same. What a Muppet.
Who does that. TL? I mean seriously who does that??
How many times have we seen a modest response to an RNS on the day then several days of bigger rises.
This is a tiny piece of the Ethernity Jigsaw but next year will produce as much as the entire revenue last year.
This isn't jam tomorrow this initial order is today. All radio deployments will use this and we'll definitely see other radio technology vendors signed up. Like the DU Ethernity solution will be the industry standard.