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First thing is to determine if you want to follow the pack. The problem with following signals is that often by the time you see it the price has already started to move largely on the basis of a tip supported by nothing. Tail wagging the dog.
It's a pretty blunt tool to be fair. If you like technicals tradingview is ok - has all the main TA analysis although I don't really find TA that useful on penny shares. I used to subscribe to small company sharewatch but haven't renewed my subscription this year as I got a bit bored of the same names appearing. Quite good for ideas etc though if you're still quite new to it as the guy def knows his stuff in the smallcap space. You could also try a free trial on Research Tree which gives you access to the broker notes etc.
First time I have come across britishbulls looks like a interesting hub for research, as a novice investor myself I wondered if anyone could share what websites they have in their favorites as support tools to their trading?
Let's hope so. WINS are both sides of the market so it does seem like they're trying to edge the market back up to where they'll be in profit.
I don't hold it in very high regard but britishbulls has now confirmed a buy signal on ENET. Make of that what you will!
Now the seller has dried up the MMs holding stock want to sell it back at a profit. I expect it to float back to 50p.
Has someone had another nibble? MMs messing about with the ask again..
Likewise I’m just about back to my average as well. Maybe contract has been signed or WINS trying to drum up some buys?
@bid - no response yet but will take you up on your offer if I don’t hear back by Friday.
Thanks for the info gharri. Whether it's all down to you or not, this is now back above my average so I'm much happier now!
My buy this morning.
Can't help myself topping up when I can, but looking 2020 for a decent return.
Nice to see a steady climb today.
Cheers.
Seems odd to have a 10% up day on a trade of under 1k notional unless there's a buy yet to be printed?
I would rather the share price low at the moment as I remain a potential small time buyer on quiet days. If the revenue increases as they say and next year is profit who is going to complain
Yes it does make it very difficult, although that's part of the appeal for me as well - not many people will give it a second look but for those willing to persist there could be a lot of money to be made by joining the dots. From what David was saying at the AGM, the companies are the ones requesting anonymity and Ethernity are not really able to fight it as it's a total dealbreaker.
@super - if you don't get a response this week let me know as I can try asking the same question (I may get a faster response having been to the AGM the past 2 years running!)
Also, good to see a lift of the ask and a small trade at 33.85. Moving back in the right direction hopefully.
R&D costs will be much reduced in now the team is in place and the concepts proven. The field testing and appraisal process is costly but now it is about developing faster more flexible versions of what they have.
The whole disclosure and updating the market situation is unacceptable and is largely responsible for the current share price. How can investors make decisions based on no information. The products and the size of the market I am very comfortable with it's the quality and experience of the management that concerns me.
The shareholders that matter are not the institutions but the private investors. They are the ones that move the share price.
Thanks bid, I have emailed both Ethernity and Advantech, although the Advantech guy is out of office until 28th August. I will let you guys know if and when I get a response from Ethernity.
Hi Super, I don't know what happened with this either. Certainly been no updates on whether it's now producing a revenue stream. There's a contact for someone at Advantech on that article though as well as Lior at Ethernity. I've always had a response whenever I've emailed ENET (usually Mark or David) so would def be worth asking them.
On the website, there is a news story dated 20/09/2018 talking about a collaboration with a Taiwanese OEM under the title "Ethernity Networks and Advantech Collaborate on Accelerated vBRAS Platform". I can't see this is mentioned anywhere in the 2018 financial statement. It seems that Advantech were using Ethernity's FPGA Smart NICs in their high performance servers, specifically their SKY-8101 model:
https://www.advantech.com/resources/news/ethernity-networks-and-advantech-collaborate-on-accelerated-vbras-platform
Does anyone know anything about this as I don't recall anyone ever discussing it before.?Would be good to know if Advantech is still bundling these together and whether they actually sold any? I see Adantech they are now producing 2nd generations of these servers but cannot find any mentions of vBRAS or Eternity's FPGA inside anymore. Would be good to know what happened with this? Who is the best person to contact at Ethernity about this?
https://resources.advantech.com/products/high-performance-servers/sub_9fe67b0b-26e8-493e-9e73-2ab4eed2b38e
Yes longy, just hope the board is reading this so they can update us fully in the interims…
What I don’t get is the reluctance to name the customers. At the moment both the market and us shareholders have no clue who our customers are (except for FiberHome), despite these customers being large T1 vendors/OEMs. How does this benefit either the company or its shareholders? David already stated in the Proactive interview that we need to get the name/business known as it will lead to more sales, so what better way than letting the market know who these T1 customers are. Can anyone think of any other company in the tech field that announces its signed contracts without disclosing such basic information? It’s counterintuitive and the complete opposite of getting your name out there. Are they delivering innovative software/hardware solutions or top secret/classified tech! And let’s not forget that so far, these “confidentially agreements” have come at the cost of peanuts to the T1 vendors. Even regarding FiberHome, I believe the only reason this was disclosed was because of the joint presentation in Shanghai, otherwise I’m sure we wouldn’t have been told.
On the revenue side of things, the two contracts signed in 2018, whilst a good start, seem relatively small and combined do not come close to covering the costs of the business ($0.5m upfront plus $2m over three years plus $0.4m upfront plus undisclosed additional revenues). In the meantime, thery are churning through the cash pile at between $3-3.5m every half year. Agreed, we have the Korean OEM (all too quiet for me) and the FiberHome deals which could be game changers but even by David’s own admission, these will take time. That’s why I’m expecting a lot from these next two UEP deals, and hoping that the UEP40 one will be released before the interims. I’m definitely dreading seeing a cash position of $5m without substantial contract news beforehand!
Get the deal UEP40 done asap...
Couldn’t agree more with everything you have stated, completely spot on. We need answers to all the questions stated and it shouldn’t be difficult to provide them.
I would also prefer the new Tier 1 contract to be announced before the interims and that it includes at minimum a $2m upfront payment plus full details about significant volume deployment / revenues etc in the near term. I'll also be expecting a similar deal for the UEP200 and hope this is already far advanced and ready to be signed as soon as the product is released to market. The company spent $4m on R&D last year and I would expect as least the same annual spend in future years if not more. Added to the operational costs we need to start seeing some substantial revenues if the company is going to fulfil the goal of generating cash flow in the second half of 2020. It will also be interesting to see just how much cash is left in the interims.
We also need more details about the two Tier1 contracts signed last year. In the 2018 financial statement, it was mentioned that they were in discussions with the Telecoms T1 OEM to triple the royalty streams from $2m to $6m over the next three years. Has this been successfully concluded yet? What are the recurrent revenue streams for the Aviation T1 as this is not stated and how long will these run? We also need to know what is happening with the Korean OEM and when we are likely to generate revenue streams, how much will these be worth and for how long?
I hope we get this information in the interims. Like TL, I agree that the company has an obligation to the shareholders regarding disclosure. I think this is one of the reasons the share price remans depressed as it is difficult to price the value of any these contract in. If customers are requesting confidentiality agreements it should come at a price and have a huge company making contract attached. Apart from FiberHome, do we know who any of our customers are? Is it the case that all our customers request anonymity or more likely just the board’s preferred reporting style?
I think some certainly will hold margins close to 100% in the case of off the shelf bolt ons. It's money for old rope now the development is done. Just a matter of how many times they repeat it. After that it's how long it runs, and given that this is flexible it could be many years income from licensing with no physical input at all.
I really like this service model
Yes the 70%+ margins are going to be very helpful for a speedy ramp-up of revenue streams.
Receiving what is likely to be a million or so in H2 in addition to royalties from other deals will definitely help cover costs. Volume of royalty will be the gift that goes on giving.
I am surprised as they will have spent well on the staff outing. This really is a business where staff are key and they need to be looking after them. I have a friend with a loosely similar venture where I am and they have two staff jetski in the harbour, free gym membership and a lunch benefit that delivers to their desk.
Israel has many options for IT so they need to retain quality.
A local listing will not cost much compared to the reward it will deliver.
If I were in Israel I would not invest in the AIM or the UK.
Yes I keep forgetting we'll get some more news from them in September. Really needs to show that the direction is continuing with the recovery in revenues and either a maintained or improved target of cashflow breakeven. Would be great if they can get this US deal signed before the interims as I think a couple of pieces of good news in quick succession will really put a line under the recent SP weakness. I agree on the TLV listing, although I can't see it happening. Mark is extremely cost conscious and I'm not sure he'd see an ROI for it just yet. He was saying at the AGM he wouldn't even approve a new coffee machine for the office!
Interim results due very soon. 7th September last year. They will show increased revenue and a narrow loss. Hopefully a big of detail around pending contracts and deployments.
We have a substantial deal announcement pending which could be any day in the next few months.
We have at least one new product release in the pipeline.
It's understandable clients wanting non-disclosure arrangements but this company has a obligation to shareholders and a disclosure requirement under their listing.
I would be very interested to know if they are considering a dual listing because the AIM is holding this share price down. Tel Aviv would be most appropriate. With Brexit, the AIM rules and general poor investor quality the UK is not a great place to be listed to attract foreign interest.