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I’m happy that it sounds to me like DL’s best chance of making a serious amount of cash is with ENET. He may well have been ok financially post BL but perhaps he might feel a tad disappointed making the serious cash for others.
Who knows, all conjecture, but I’m pleased that it sounds to me like his motivation here will be very strong indeed.
I think that even if he did get burned of course the 5 founders would have started with very little and ended up with some shares at $38 a pop. I don't think that he will have done so bad. He managed to start Ethernity and run it for years with no venture capital.
Inventing the GPON protocols really so far is his claim to fame.
David is clearly a very smart guy.
Many thanks for that article, it confirms what I wondered, basically sounds like DL got shafted and he’s going to use that experience to make sure it doesn’t happen again at ENET. It goes to show that you always need much more than just technical ability if you’re going to be a true success for yourself and your shareholders.
Hi uhlf article in Globes doesn't seem to think so -
"Levi says that Ethernity was founded and has operated without any investments by venture capital funds. Levi previously founded another company, BroadLight, acquired by Broadcom in 2012 for $230 million. Before that, however, the venture capital funds that invested in the company diluted the founders' holdings, and it looks like Levi was burned by the fund, and preferred to do things differently with Ethernity."
Just to be clear I wasn’t in any way suggesting that the warrant exercise wasn’t anything other than totally reasonable.The question was from the angle of did DL make a lot of money from BL.
I don't know Patt from Advfn. I am close to the company though. Israel is a vibrant ecosystem of tech. I found many who knew of Ethernity and wanted to talk about them. Not just employees but several from other R&D based companies who want to work there. Many are happy to discuss broadly where the tech is going, what is possible and how clever they are at being part of it.
Often one is flying blind or collecting snippets without knowing the significance. I keep extensive notes and then looking back I see the obvious. Inevitably from time to time I hear something that can't go on a public forum and can't be verified.
Occasionally you piece bits together that seems to make sense like Dish Dell Ethernity but it doesn't mean that it is the case. Dell may have been engaged but choose a different route (or router). I don't know. I do know that so far the story hangs together.
I don't fear the results from last year. They will be OK, are historic and will hopefully contain some info from the last 6 months. They may be a distraction but short term I am loaded with a 60p target but will modify if they move strongly. Mid to long I am still at £5-10.
Uhif I doubt that he had to sell. He just exchanged some 130p shares for 30p shares. Seems completely reasonable to me. David Levi and Shavit Baruch both exchanged their shares at the same time. David and Shavit has invested nearly every penny they have earned back into the company.
I am sure that they are both extremely careful with their investments and mindful that as founders it is extremely difficult to sell shares without negative consequences.
I think that you will find that they are personally wealthy and have a very high standard of living in Israel.
I think Tarana does derisk the existing business completely. I expect profit from Tarana and recurring revenue from known contracts to more than cover the entire costs for the structure of the business next year. That derisks and underwrites the company. So far they state just $1.2m orders from Tarana for 2022 but that will be based on existing clients with 6 months to go to add many more. I think $5m will be the low end expectation.
Can’t see any reason to be anxious…..
next week results. are you anxious?
I think £1-£2 is very achievable this year, especially if this w/ends discussions turn into reality. I would be happy with that, but that is not my target. We are heading inexorably towards a very bright future.
You have an admirer on a d v f n
I post his ( patt) message in full
If anybody has not read it then read the traceylied post on LSE yesterday at 22.06.
I am always VERY wary of posters who are close to the company but TL is the real deal. His/her insight aligns very closely to my research though his/her technical knowledge is much higher than mine.
I think I have found evidence of them testing the non-physical back haul back from 2017 when Dish obtained a licence to operate a remote signal from one of their US offices to a remote point testing antenna patterns. I read it but it did not make sense at the time. I am trying to find it again. Now it does.
Can somebody who posts on LSE send my regards and thanks to TL. Clearly an informed and involved researcher with excellent insight. Like on ITX it takes a team to illuminate in advance. Thanks
Agree with both of you . To put it in a crude way if enet is aligned with Tarana, then dish, then Dell, then VODAFONE then by god have you got the exposure we’ve been dreaming of for the last few years. Nothing wrong with a bit of hype. And when the hype is ripe…..
I don’t know if you know the answer to this, just a bit of background info that I’ve wondered about. 9 years ago Broadlight was sold to Broadcom for $200m. I understand that DL was one of the founders of BL. Do you know if DL make significant money from that deal? Given that recently DL had to sell shares to fund the warrant purchases I’ve assumed he’s not minted. Which I’m happy with as he has every incentive to make ENET succeed. But I do wonder what happened with BL.
Any info/view gratefully received.
I do not think tarana completely de risks enet. at lesst yet
If potential means full potential then it is quite realistic to assume that will never happen. Reality is that the market will never know what's happening behind the public face until it is delivered.
Sales will start small but the share price could comfortably wear £1-2 this year. That is with news that major contracts like Tarana are secured.
The Tarana deal has added arguably zero to the share price so far. On a crude level I understand why. In December we knew that a deal would produce $500k this year and we now know that it will be $740k. However we also know that to reach $6m they need extra income beyond recurring royalties and expected sales. So the 50% increase from Tarana is just absorbed in that.
Tarana is so much more because we know that it is Tarana, we know that there's huge demand, we know that a tower can hold up to 4 Ethernity units. What we don't know is the margin on each sale. Hence a zero response.
However we as shareholders have seen our investment derisk almost completely.
I agree with much of what you say but differ in a few areas.
I am a long term holder but I am very interested in the shirt/medium term share prices, if that makes sense.
Why, if I have no intention of selling my shares? Several reasons, the mechanism for 5G IF means a low share price has the potential to significantly dilute us, I don’t like that and wish to maintain a reasonable % holding in the company. Also I’m sure developments at ENET won’t go unnoticed in the industry. A low sp could mean a low ball opportunistic take out. That would be a crying shame. So it is incumbent upon ENET to properly explain and outline developments and future potential do that is reflected in the sp. Anything less and they are not doing the job and that has the potential to cost all of us a lot of money.
We need it all, the technical genius is the hard part, but they absolutely must get the message across, up the IR.
It’s absolutely vital, imo.
Tracy, as usual many thanks for your threads and knowledge.
One of the main points here is that there will not be one big bang order, it will be a contract and call off. Mark and ENET seem very conservative in their approach to IR and forecasts. I think this may follow David, who is not a natural salesman - as I have said before I am delighted we have a deeply, deeply technical genius at the helm rather than a bloke in an Armani suit.
Although not really that interested in short / medium term share price I cannot see the market valuing ENET at its potential until late '22 (when they adjust their guidance for the year) or early '23 on release of '22 and update on '23.
I will be here with my current holding until it is taken over. After some dark days I really am going to sit back, read the RNS / board contributions, try to understand the market and financial implications and enjoy the ride.
In the US a small group of Tech billionaires have cast their net wide to preempt challenges. Ethernity has understood the dynamic largely because they have been part of it since pre IPO when they started problem solving for Tarana.
Greg Wyler is on a mission to connect the world. Greg supported Tarana because compared to putting satellites into Low orbit the last mile connection is mission impossible.
So I feel sure that Tarana will play a part in distribution of the signal where trees and other obstacles create loss from low orbit.
Now look at Ethernity, they have just developed a wireless backhaul product and soon they will be releasing UEP-60.
I can't help but think that this is all linked. Why now for wireless backhaul. It uses principles for connecting as found in the Ethernity part of the Tarana solution. It can be used with wireless or satellite. It is about how the data is handled not the mode of transmission.
So the Dell Dish Ethernity story. Dish are working with Dell for server, edge and networking. Dell we know do server and edge as they have off the shelf products. Ethernity deal with Network. We know that Ethernity has engaged 3 Major Server manufacturers. We know those manufacturers have an ISP in train. Can you think of any others in North America big enough to energise a major player.
Dish has gone for ground up OpenRAN so it goes without saying that this is fpga and virtualisation. There will be ASICs components, largely limited function not so SmartNIC. Network cards will be needed to join functions but the magic will be virtual.
Dish or rather Dell will need a DU solution. They have already spoken of a unit at the cell tower and a unit connecting a network of towers. This is the DU. They also talk of the CU being remote from the DU. This is the same scenario as the Ethernity DU solution. Now that DU CU connection is probably going to be physical however with wireless backhaul it need not be.
I first thought wireless backhaul would be redundant capacity for a damaged cable or maintenance but now I think that it will be the network.
Imagine a scenario where most information is dealt with locally. A question raised at one tower does not need to go to the data center for an answer if the answer is at the edge. So the wireless backhaul could actually be a local network of edge servers. Now we don't have a simple router to multiple CU scenario but a DU with multiple CU and multiple edge server scenarios. Now the router needs to be programmable, agile and all at minimal latency.
I hope that I am right about this, it adds up to me at least.
If one from three is very exciting we would have to come up with a suitable hyperbole for a full house!
Hate (liar!) to think what the sp would be then, TL’s target could be under pressure in a good way!
ps , top up Monday coming up!
A great set of posts today TL, thank you.
I note your suggestions to dyor, and it’s all in your opinion etc. If it’s not along the lines you suggest then it’s still a damn fine read and given what we know in the public domain then surely just a question of swooping one major name for another.
I note this post from patt on the a d v f n thread
I love the Internet....you can join all the dots. OK...get some of this.
In mar 19 Echostar owned by Charlie Ergen put $60m into Tarana along with $88m by 1010 Holdings of Greg Wyler.
Dish is owned by Charlie Ergen.
Dish have given Dell its network contract.
This gives a direct connection between ENET and Dish with existing use of ENET technology. If Tarana use ENET then Dish will also use it.
I cannot do links as I am without my PC but search s&p global market intelligence 21 March 2019 one web founder company leads funding round for wireless provider Tarana.
I think one from three would be very exciting. We need to remember that Ethernity has a unique product with unique features and it will save huge investment in a massively expensive process.
I still expect the numbers will be small from the start but if they have multiple wins the numbers will escalate rapidly.
I know you’ve always said small numbers to begin with but if the prophecy is correct those names will bring so much hype it’s not true. Will be praying tonight and into Sunday lol
I see no reason why ASICs and fpga cannot coexist in a ecosystem. The ASIC part is obviously a factor that becomes common, unlimiting and with future proofing built in. The agility will come from the fpga but not all of the system needs to be programmable to be agile. Not all SmartNIC are actually smart. ACEnic-100 is an absolute leader.
Markets are opening up now for Ethernity.
I think that the 3 are Dish, Vodafone and Telefonica. Just saying.