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sergi On the 16/04/21 I have noted that the Tarana products were being used in Aus/NZ by Horizon; MTN will use the Tarana units in Africa with SA first under the "Supersonic" label.
Sergi I think that the lack of interest and the void Ethernity are in suggests that they are not doing it right. The UEP update was vanilla at best. Again no details and nothing to project forwards with. No explanation, no detail and no interest.
I think that the market response says it all from what should have been a 20%+ RNS
Re agm, you’re entitled to your view. They have to put out a rns for the agm anyway, so why not add a bit of interest for investors to it at zero cost to ENET, many companies do this.
Largely agree with the second half of your post. Re VSA, they no longer follow ENET because they are no longer engaged and paid by ENET.
Easily available broker coverage is a must, imo. This needs to be rectified and soon.
source sustaining this speculation? The only thing I know for sure is that MTN committed to Open Ran and the telecom infra project. I asked to Silicom at the Cc about MTN and Vodafone, they still don't know who is going to supply... Or that's what they said.
I don't think an AGM statement was needed.
The UEP contract press release was good enough.
No problem here IMHO.
Just my feelings, but I am sure they want to improve and are trying to improve the IR aspect
Interims will be a good opportunity to explain the outlook, DUs, China, growth during H1, and licensing. Then we will need 2 adequate follow-ups between Sept and June. That + presentation + 1 analyst coverage is enough. I am not saying they are going to do this. I am saying what I would change.
That's not a problem of Ethernity only. That's a problem of most AIM companies, most microcaps that have 0 coverage, and especially for deep tech companies. As an investor, that's your edge. To have the ability to forecast or project earlier than others, and to better understand.
At this stage, they can not speak about everything they are doing and send RNS because there is regulation also. Like it or not, this is the case.
They could explain everything they do and reduce the cost of equity but then other risks would increase...
The focous should be to reduce their cost of equity without increasing other risks.
I agree the message has to be simple; and easy-to-understand investor presentation where they show the potential of the new business (complete solutions) vs the legacy segment, also their aspirations or something like that, and a little about their tech, just to have an idea of what's the company doing and trying to achieve. That would be helpful because new investors would be attracted. As roddel said, right now is very difficult to see the potential (it was difficult for me), and the presentation would help. One guy told me: "why are you watching Enet, saw your comment, looks like they are restructuring mode and not really having any revenue..."
Another thing is analysts' coverage. I don't know why VSA is no longer following them. One analyst properly following the name and posting (free) follow-up notes when we have an RNS would add a lot of value. Ethernity could add this research to its website.
Silicom has Needham. Napatech has Introduce.
Also, the strategy of letting the contracts speak is a good strategy. The UEP RNS was perfect IMHO.
I agree that 2 detailed updates (December and April) should be posted from Sept to June, because sometimes investors think they are hiding something.
Interesting to see that MTN is the key sponsor on the South African Rugby shirt. And guess who supplies MTN with their key ingredient...ENET! Can't be bad for our prospects. Just a pity about the result today.
Interims in 4-5 weeks so we can expect an update on current trading and cash burn. Then 9 months of nothing. That would be a great place for those scheduled quarterly updates
Thanks for the reply. If you’re getting the impression they want to improve things, great.
As you say, let’s see. They’ve had two recent opportunities with the UEP contract and the agm. They’ve not taken those last two opportunities so forgive me if I’m doubtful that we are going to see any changes.
They could have clearly spelt out the market for UEP, backed up the contract with interviews, broker notes etc.
Again at the agm, they passed on putting out a statement with the agm release re second half of the year etc.
Really this is all basic ir support and , as far as I can see, they simply are not grasping it and delivering what’s required.
Totally agree with the orders TL, I expect much bigger and valuable orders going forward. Be nice to hear of a few around Sept/Oct time, if contract announcement is regular and bigger then the SP will have to react. I'd say even 1 contract of any size with a named big Tech the SP would rocket because sentiment would change instantly imo.
Quality investors will come when Ethernity are profit making and dividend paying but right now they are in the pit with all the others and must fight for attention.
Assume that your audience know nothing and appeal to their values.
I don't care about Ethernity,David Levi or 5g. I just care about taking €1m from this.
That's the way it is.
The headline for that Information will be "Ethernity expects a substantial increase in revenue" That's absolutely the case so why not spread the message.
Sergi it is absolutely the problem. There's a real lack of quality investors on the AIM. The message needs to be basic. Not about the tech as there's lots of that. Simply about the level of engagement and the potential returns.
It takes years to cultivate business on the old model but that's not the case now with pressure to deploy and products with trial verification.
The message needs to be as simple as that, Ethernity are busy and contracts are likely to follow.
If you don't think that fills the void in what the market really needs to know then that's up to you. I can tell you that the people who contact me just want to know how much and when. They don't care how fast or how small something is.
Kitlow I don't think that the contracts have even started. Nothing from the DU which is the main mass deployment opportunity in the next 12 months. The others are strong in combination but the DU will be $10m-30m a year. $3-10m is nice if we get a few.
In the end the contracts will do the talking but I don't think that they are at that stage yet. If they are then they need to tell the market they are.
are you joking Tracy? honestly.
This is the IR problem you see?
That's not a problem of the company, it is about your expectations.
Roddel was speaking about somewhat completely different imho.....
Going down the path of "let the contracts do the talking" will work in the longer run and truth always outs in the end (as long as the contracts keep coming which I'm 95% sure they will and we don't need imminent raise of cash).
It doesn't really bother be as I'm in for the long term and still accumulating but I don't personally think this is a very respectable way to go about things with regards to shareholders who have been invested for 2 or 3 years and have been extremely patient. For me this is a bit of a red flag (albeit a small one) and defo something to watch. I don't see any harm with the next contract announcement to lay out future plans and direction, surely a fairly easy thing to do imo.
The "let the contracts do the talking" line really is where the problem is in my opinion. Fine if you release 2 a month but we get 2 a year. If that's going to change then they need a ReachRNS saying that they are in pre contract discussion with multiple clients and whilst they may not all lead to sales we expect a substantial increase in production orders and sales.
They can specify the areas attracting most attention and why.
it is not fact based only impression based. I think they want to improve things... let's see
Is the re points well made, or re ENET hq or both!
I’m assuming it’s re ENET hq and if ENET are taking note of shareholders concerns re their ir performance, then we’ve yet to see any tangible evidence of that.
Perhaps you could clarify re ‘assessment is not correct’ and if indeed it is pertaining to the ir side, in what way is the assessment wrong, and if they are taking the concerns seriously, are they taking them seriously enough to actually do something about it?
ENET have got a fantastic story to tell, but unless they are going to gear up considerably on the ir front they are short changing every single shareholder.
uhlf. I think your assessment is not correct
Excellent post roddel, your points are well made.
It’s a shame no one at ENET hq seems to be taking any serious note of their shortcomings on the ir front.
I guess you got the CFA charter so congrats.
Thanks for that color, your explanation seems very interesting and I guess you have been following enet for a while.
If that's the case with the CEO maybe they could reconsider the position as a chairman or CTO? I agree David is amongst the best in the industry knowledge, but it is about the correct role.
Yeah, I agree they should make more clear what are their ambitions for the future. An easy-to-understand IR presentation would be a good step for that.
You say "The company can easily do more to engage with present and future shareholders", my question is, what do you propose for them to solve this problem?
Also if you want to share your prior research, we will learn for sure
CFA combined with work meant i had no life for precisely 21 months of my life so best of luck with the results- L2 was easily the hardest paper so thankfully you are past that Sergi!
WRT Ethernity, In the context of the modern day investor mindset, it is important for the company to keep reminding the market of where they are on their journey and where they potentially think that their journey can take them. I remember a few years ago David Levi piqued my interest by simply throwing out a statement “10s of millions of dollars” when asked a question on revenue guidance by a proactive presenter when the market cap was c.£10-£15m.
I also went to an event in London where ENET were presenting- Whilst David wasn’t a natural presenter (I see him as more of an entrepreneurial CTO) but he got to a point in the presentation (about 5 minutes after he had lost the entire audience of potential investors through use of a multitude of unexplained acronyms) where he was physically agitated with excitement at the opportunities ahead for the company. This made me feel like i was on to something special.
I am not typically a tech sector investor, however in 2018, on the basis of the decent exposure that the company were trying to facilitate, the future projections given, and the fact that David in that moment appeared the smartest man in the room I decided to then do follow up research and add more to subsequently build what for me was a decent position in the company.
I believe I represent the very investor that skid was referring to. Fast forward 3+ years, to Tracy’s point the company have not done enough to get the message across to encourage newer investors to commit to researching and investing. Not only that, my guess is that were it not for the very informed research from a few excellent posters here I might be doubting the validity of the investment case 3 years on and after what was a car crash fundraising and now a murky drawdown agreement which keeps the sp anchored.
The company can easily do more to engage with present and future shareholders- I was almost annoyed at the coincidence with which the UEP contract was announced on a Friday the business day prior to the AGM. It smacked of “well we have to give them something”. They currently produce newsletters, publish articles etc that require internal scrutiny but might not have the investor reach so I don’t buy the argument that they are full tilt with workloads and that is why they can’t provide more comprehensive and frequent updates to get the message out there.
I'm a longtime lurker, occasional poster, and semi-recent investor in enet.. I totally get that investing is a long-term activity, especially after making a few mistakes of my own in my early days. However I do get a feeling that a lot of the latest generation of retail investor believe that you put a tenner in on the Monday and walk out a millionaire by midweek, be that on crypto, shares, FX or whatever else. These are going to end up getting burned badly. No doubt a few have made a handsome amount of money out of it, and are very keen to let everyone know that, but there are going to be a lot of (mainly younger) people who are going to lose, and in some cases already have lost, a lot of money when the music stops.
thanks... tuesday cfa level iii exam results....