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Agree 100%
Yes my point entirely. A start and we are at the start. It's not even IPO and it went much higher than that on nothing. Yes some dilution since but much progress and a portfolio of products.
Agreed, £1 is nothing but it’s at least a decent start!
One pound is nothing and I don't think that it will take much to reach it. Just half a dozen decent new investors can double the price.
Tend to agree with TL re sp being ****ed. Totally and utterly. In many ways I do like these sort of opportunities, had them before. Co floats on a wave of optimism, delays for whatever reason, sp heads down, grinds down as reality hits. Shareholders throw in the towel. But the original idea/tech was sound, the listing almost or quite possibly works against the company. More funds means more dilution at low prices. If ENET floated tomorrow chances are the m.cap wouldn’t be any less than the 2017 float.
imo, £1 is fully justified right now.
But sergi could be right, the market may well want to see something more tangible first. Then watch it re-rate!
Exciting times ahead, I think.
GLA
TL I think that current undervaluation is because the company went to the IPO saying something that did not happen then (you know what happened to the sector, look at NAPA or SILC charts from 2017 to 2019). Management execution in terms of doing what they said (revenues, cash) is 0. But this is going to change I hope very soon
So the market does not believe what they say due to this situation. But this is what always happens. Market is myopic
Also, the risk right now is significant (less than two weeks ago though :) )
If happens what I said on the previous comment, all of this is going to be cleared
I think that it will want to see orders flowing from China. I think in three months we'll see that. There is actually plenty known already for the share price to be above £1. All that is missing is exposure and investors. I believe that we are seeing new investors arriving now.
TL maybe, who knows.
But for the share price to reach 100p, I think the market wants to see on the table:
-licensing & legacy deals ramping up after 3 years of delays
-more news on the 5G/DU/ACE business
imho
time will tell
A year. I very much doubt that. I think less than 3 months. The share price is so ******ed that any rerating will be excessively almost unsustainably rapid. In a year this company will be in a cash profit position with potentially 8-10 revenue streams.
5G mass deployment will gain momentum over the next few months into H2 and many will see the immediate growth potential of the sector.
1)
After yesterday's volume, it was clear to me that something was going to happen. If everything goes okay, we should close at 37-38p level and consolidate here a few days. I think Tarana news were excellent and should justify a current valuation of 50p, but nano-caps are low to react. Moreover, Ethernity is a complex security.
While news flow on the licensing/5G segment, that valuation should rise to 100p - maybe in a year from now.
2)
They have always released the audited report in late June. This year is not going to be different. Of course, the annual report is complete and has a lot of information, like the CEO/Chairman report, so it needs time. But yes, ENET is taking more time than other companies.
3)
I think we have not had an update yet because H1 is typically the softest half year, and everything is starting now, this year: the 5G/NFV deployments. Maybe the H1 results (revs) are not outstanding but are in line with mgmt expectations (as set up in the Dec update), so there is nothing to say that has not been said already. Progress is being made, but not enough progress to update on a business perspective. Yes, progress is being made in individual projects like Tarana. I hope the next ones are the licensing deals.
Hear what you are saying but I just don’t buy that at all PR.
There’s , imo, no way that ENET’s accounts are so complicated that it takes nearly 6 months to sort them out.
I would like to think there’s a rational explanation but can’t for the life of me think what it is. Other co’s I’ve been invested in , including Israeli firms listed on aim, cos with multiple revenue streams, royalties, licensing etc in multiple countries have no problems furnishing their shareholders with timely results.
There is no excuse. Imo.
I will stop there, as it does annoy the hell out of me!
GLA
When you consider that unaudited half year results are typically issued with a 8 to 10 week lag in Sept, it's not too surprising that audited FY numbers require much more time.
IMV, it's more a sign of the underlying complexity of multiple income streams (licensing, royalties, design wins flowing in upfront and recurring payments) coming from multiple regions rather than laziness or reluctance.
I imagine you need either a really simple business or a very large accounts team to get audited number out faster.
Just my 2-pence as a layman with zero accounting skills!
Hi bid
Personally I think it’s incumbent upon management to issue the results to owners, ie us, as soon as reasonably practical. Imo there is no excuse for issuing last years results in June, it’s just very poor. I hope ENET is an exception, but it can be symptomatic of a poorly run company. If they wish to update on H1 they could do it via a TU, or if they left it just a few weeks later they could do a H1 post close update.
Really there is no excuse to issue yearly results almost 6 months after the event. I can’t see that the structure or accounting is in any way complicated. I guess audits etc may mean delays due to CV19, but they were issuing them last minute before cv19 came along.
The company seems well run so why they persist in this frankly bizarre practice is beyond me and it’s a black mark
against them from me. ENET, if you read this, please get your results out in a timely manner. You owe that to shareholders, thank you.
Nice tight bid/offer, always good to see.
Cheers
Skid I wonder if they push the results out as far as possible to give them (and us) more visibility and a better chance to say something more bullish? Mark is an experienced CFO and could knock results out easily should he want, so it must be a choice to leave it to the last imo. H2 21 is arguably the most important period in the companies history - they are due to be cash flow positive and there should be more progress and info on field trials and wider 5g deployment news. Just my thoughts anyway.. lovely to see some blue today and plenty of buying. I even managed to ramp another couple of mates into it this week!
Managed to squeeze a few more in, trade not showing yet
25k @ 33.9p, if delayed probably show up as a sale.
Apologies, just getting a bit excited after yesterday’s buying and no movement.
Wonder how I’ll cope when we head north by 10p, 20p or more in a day, I’d like to find out!
GLA
There she blows!
Peels on 33p have max 2000 by phone.
Move up looks imminent
Please don't mistake share price with value. The share price is totally disconnected from the share price. The figures are very real and if the share price were £1.50 now it would not reflect the opportunity looming immediately ahead. A few are seeing it now, many more will soon and many will be too late.
Whilst I don't disagree with your sentiment TL, the initial statement hasn't moved the share price and the numbers you quote may or may not be accurate. Ultimately, any confirmation of the volumes involved in this particular arrangement will begin to appear in the accounts for 2021 which will be released in June of 2022 I suspect. Clearly, there will have been developments in what the business is doing and how the various projects have progressed or otherwise, all of which gives shareholders an indication as to the short/medium term prognosis for cashflow and profitability. For the avoidance of doubt, I am not questioning the future of this company but I am absolutely, as a shareholder in excess of 1%, wanting a progress update which I genuinely don't consider to be inappropriate. It has, after all, been well over a quarter since the last one. Just saying is all. GLA LTH.
The DU process is Ethernity driven. It will take 6-12 months but I would expect a definitive contract sooner rather than later.
It was a lot more than ratification. In December the expectation was $500k 2021 and $1 2022. This is a major escalation in the deployment. We can expect minimum $1.2m 2021 and $2.5m 2022. It was the naming of a huge partner which means we can now see a long term global market. It was huge news for a tiny company. It is like a non league club signing a Premiership player. It was worth 20p+ on the cap.
As welcome as last weeks RNS was/is, ultimately it is simply ratification and detail on something that was contained in the December 2nd RNS projections of revenue uplift (accelerated or otherwise). Given that the BU RNS was issued over four months ago now, in what is generally accepted as a fast moving arena and a rapidly developing business, I would like to see a business development update sooner rather than later. As I have said previously, I would expect the board to have management information on how things are progressing or otherwise on the various fronts being pursued and I don't consider this to be an unrealistic expectation. Granted, they may want to get Thursday (remuneration EGM if memory serves) out of the way and, yes, we can speculate that they may be holding off for something major, but in my experience that is rare in the extreme. Happy to be proven wrong though! All IMO and time will tell. GLA LTH.
We already know 2020 wasn't super for Ethernity. H2 better than H1. I see it as a distraction and don't want any update to be lost in the headline.