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Uhlf
Probably not a like for like comparison with late stage pharma drug trials but the ENET trials are very important for the future of the company but not as terminal as a failed Phase 3 .
drug trial I must admit.
However now that ENET has announced these product trials the market will be keenly awaiting the outcome of same.
Spot on fairview. It’s frustrating but not much we can do about it. There is a roaring bull market in some sectors of the small cap universe. They say a rising tide lifts all ships and that seems to be happening ( apart from ENET!)
Latest craze seems to be SPACs. In my day they were called cash shells and sold at a discount to or slight premium to cash. Now the promise of IzzyWhizzy PLC hooking up with them is enough to warrant a market cap that’s crazy, imo. It will end in tears. Or a company that knows a mate than knows someone that’s heard of Bitcoin. Worth the market cap of ENET alone!
On a more serious note there is a danger that ENET misses out on this small cap bull market. But that’s beyond their control. So long as they do what they say and communicate that clearly I will be happy. I think their progress has been good and we should have a great 2021.
Yep I thought the same fairview. This also ticks quite a few boxes for the ramp crews (e.g low number of shares, tight free float, big skin in game from the board, etc) but they never seem to touch it .. not that I want it to spike 100% in a day as it never lasts, but you get what I mean. Everyone seems to be looking at these cash shells which can't even find an investment .. why not do some actual research and find a company involved in the biggest tech rollout in several years?!
interesting comparison dallo
Although I stopped investing in small pharma ages ago after mixed success. Long lead times, cash hungry and , generally, binary outcomes.
I hope that’s not a role model for ENET. I’m assuming the product (drug) works and what we’re looking at is how it works in a system with other components and how it fares against competition.
To be honest I’ve had enough of high stake gambling with small pharma and I sincerely hope ENET is not in the same bracket. For a start it has multiple opportunities to make an ingress into this market, a new drug generally gets one shot.
Hope you don’t think I’m being over critical, but just not that keen on the comparison and not sure it’s valid
ATB
The thing that annoys me is when I see absolute joke companies ten or twenty bag on the latest craze while a business with genuinely huge growth prospects like ENET is largely unnoticed. Hopefully one day soon that will change.
Could well be right TL, although I would prefer to see a little more activity on the share buying/trading front.
Im sure ENET run a tight ship, but with an extended supply chain someone always knows something and generally that something feeds back to the market. Not always the case, and even if someone knows something they are not necessarily in a position to do anything about it or know someone who is.
So not exactly the be all and end all but I would prefer to see a little more activity, right now could hardly be less!
Kit low
View Ethernity as you would a small Pharma whose drugs are in late stage clinical trials.
The testers are checking for efficacy and comparatives against existing drugs( replace with ENET products in trial).
As with Phase 3 clinical trials with Pharmas the market will explode on successful outcome of ENET products currently in trials.
However the converse is true also insofar as the SP will tank if trials fail or are unsuccessful .
Tracy.
Like most on this board not concerned at all by short term price movement.
Of more importance is newsflow, which I look forward to hopefully in March and q2.
First disclosure and it will jump to 50p in my opinion. Could be any day.
Revenue will flow through the OEMs and integrators using Ethernity products. The go to market strategy with TietoEVRY and FiberHome are separate opportunities. Sales will certainly be now. Starting small but will build quickly. Mass deployment will be starting now. Sales will come. Ethernity has leading products. The market is immature but it will develop quickly.
Yes, very true TL - this is where the frustration lays, it's hard to see where and when revenue is coming and from whom. Very unlike other shares I've been in where I have beaten most to predict a huge SP increase because I can see clearly where it's going. As long as they can satisfy share holders deals of some sort are being done, sentiment and future revenue will be priced in imo.
Kitlow this will be different. Ethernity are selling mainly through third parties. Until those third parties are engaged in mass deployment we won't see sales. What we will see in Asia is 5G and hotpots. Maybe private or Telecom field trials. Maybe a town, maybe a factory. When the third parties buy they buy and pay. Certainly Techtronics pay before their client. This is raw sale of cards. Code and virtual solutions will be ongoing royalties and design payments. However in some cases Ethernity may release that license in exchange for payment.
Bidnolid, have a look at Dev Clever - big contracts in the bag but I believe not yet cash positive. 2500% SP increase in 14 months so I think it's more contract sign ups, sentiment and future revenue than actual positive cash generative, although that will help significantly too. All imo.
The rate of deployment is the big unknown even more so than the income. If Ethernity weren't in full sprint now I would be concerned. Now is the start and Ethernity has to grab business now. The flip side is that costs initial investment in adaption and trials. Whilst Ethernity make income from design wins they also invest in the relationship which is a human and often tech investment.
I believe income and costs will rise substantially this year. I believe that income will overtake cost of sales in H2 but it will be close. One chunky engagement payment and they will be well clear in paper profit.
I am sure that this board would be critical if David sat back waiting for business to come to him. The market is huge but very specific. Ethernity has quite rightly chosen to be the best in a niche and to make it theirs. The downside is that we have to wait for that niche to become todays problem. Now it is and integrators are climbing all over it. We can expect sales really from now as the leaders commit to mass deployment.
Could they have been more specific about what the new funding will be focused on? I might email them for more info
I was wondering about that as well TL. So you reckon that now won't happen as they've have more of an outlay on components and other expenditures? Whether they go cash flow positive in the middle of this year or in Q1 2021 is not a big deal to me but I wonder if the market will think the same?
Ethernity did not repeat the cash positive but instead used an actual figure for income. They said that delivery and income will commence Q1. The various trials will be costing chunky cash as will the development of the DU solution. Even the cost of fpga and components are significant to a micro cap like Ethernity.
We can expect substantial engagement payments once the DU is completed and the server vendors commit to mass production.
The Southeast Asian National Telecom using ACEnic-100 in their solution will no doubt make substantial milestone payments and then fees and royalties for the cards and virtual router.
I guess that the costs are harder to pin down than the income.
I suspect that £5m H2 is likely
Ok, thanks dallo, appreciate your message.
With the benefit of hindsight I shouldn’t have re posted the a d v f n message.
Oh well, onwards and upwards, hopefully!
atb.
Apologies from me too. I was just ready for a type of different rns! Atb people
Uhlf
I was not referring to you just the post from Advn
All shareholders are "inside" even new investors
like 5G .
Ethernity when signing the Subscription Agreement cannot have given 5G any market inside information so 5G knew the risks and rewards but management did not want to give away the whole shop for buttons hence the prepayment structure.
Of course Ethernity is cash contrained and needs to go cash positive soon otherwise it will be bought out.
That's why next 6 months are critical and I expect management to deliver.
If not I think someone else will
No offence meant to you just response to ADVFN post.
dallo
Just to make it absolutely clear I have NOT accused anyone of insider trading.
I have suggested that , imo, there is no reason why 5G cannot be treated like any other potential investor and made inside, if the so wish. Having been made inside they can asses the information and decide whether they wish to accelerate the funding programme agreement they have with ENET. This would be sensible DD or their part and, unless you know to the contrary, I’m suggesting that is a reasonably hypothesis and totally legal, correct and within the rules in every way.
It is GtG who has questioned this aspect.
I trust that makes my position absolutely clear.
Insider trading is an offence and those who have received insider information that is market sensitive are liable to prosecution.
Management and Directors and connected parties are deemed insiders and cannot trade within closed periods.
Imparting inside information to 3rd parties or individual investors is a criminal offence.
Mark is a Chartered Accountant like myself and is above reproach so idiotic statements about insider trading are very dangerous and potentially libelous .
dallo
Re cash flow positive H2 2021
They said this in an update on 6th May last year:
‘On the basis of 5G deployment and the resultant increased use of NFV technologies in the telco cloud and Radio Access Network (RAN), the Company anticipates that positive cash flow generation will commence by from H2 2021.’
As far as I’m aware they’ve not chosen to repeat that, despite annual reports, interim reports, market updates etc.
It’s a very important parameter for investors, but, and I could be wrong, it seems to have slid off the table in terms of further confirmation. Perhaps they regretted saying it first time around, who knows.
Thanks for all your comments dallo and 01234.
Generally I made similar comments back to GtG on a d v f n.
Re they have ‘no insider knowledge’ . That is said with some certainty dallo. I invest in companies in placings and have often been made ‘inside’, I’m then released from those obligations, ie keep it to myself, no trading, once the investment is made and RNS issued re new shares.
I don’t know for sure, but can’t see any reason why a similar set of rules would not apply to 5G. They can be made inside, at that point they can’t trade the shares. They can subscribe for shares and at that point they are released from insider obligations. I’m not saying that’s exactly how it works, but I see no reason why something along those lines shouldn’t be the case.
The post from Greg the Grinch is idiotic and typical of uninformed investors.
Ethernity DID NOT issue shares to 5G at c33p today and totally dilute the shareholders.
Would it matter if 5G put the cash in at a SP of 40p with a future drawdown at 50p.
Until we see what 5G do we should be sanguine .
Ethernite needs funds now to drive forward and I am confident with the warrants and 5G cash it will be cash flow positive in H2.
DYOR