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Would a new production facility not involve a lot more of something enet has been slightly short of if you know what I mean?
Crikey so that’s the tea lady and the janitor !? TL stock up on those Vape refills and keep the info coming ! GLA
Yes absolutely. I am told that Ethernity learnt of the scale of the first deployment a couple of months ago. That resulted in the extra cash call on "recent progress by Ethernity in executing its growth plans" which left us scratching our heads. Then the patent reach RNS for a patent issued in August. As I said at the time something is up. More head scratching.
Ethernity had to do some major catch up to deliver this first order and I expect to see major investment in a permanent production facility. I am guessing in India near Pune but that's a guess.
I am being fed very specific information which I now realise was all about this contract. In fact it is all about understanding this deal and explaining links.
It is definitely not from the management but it is from two people with knowledge and an agenda to feed information.
I am very careful about what I post publicly and say privately now until I get to the bottom of who and why.
Re the quote a year ago, even better!
The usual sort of news release is it’s going to happen in x years time, watch this space etc.
Here with ENET’s news release it’s a case of announce today, ship tomorrow. Mass roll out the day after. Well, almost.
What a little gem to keep up your sleeve!
That quote was nearly a year ago. Now the trials are complete and they are commercially deploying this solution into early orders from the trial participants. Others are joining with trial installations. These maybe trials but actually they are installation exercises, tooling, training and optimising.
The important information is that this is not one user ramping up but many. Once Continents join in this the demand will be huge. 5000 units is just up to 2.5 million households. I am sure that this just accounts for the US.
Interesting when you look at the costs against fiber in a suburban installation in the US. There is a typical 90% reduction in cost of deployment. The US market is around 100 million households. Globally guessing billions.
In the US there's funding for rural and suburban connections also in Africa. This tech fits into that perfectly.
Excited.... Just a bit.
Certainly going to be worthwhile keeping an eye on Tarana news:
‘We’re putting the finishing touches on G1 now and have started commercial trials. We are deeply engaged with tier 1 service providers on multiple continents, but that’s all exciting news to come. Stay tuned . . .’
Exciting stuff!
GLA
Tarana are engaged in multiple trials in the US and Canada where there is a huge rural market. Funding is in place for rural areas. Globally Africa has a fund for affordable access and Tarana are well represented by MTN who have many installations to work off.
I believe that the requirement from Ethernity will escalate at an alarming rate. I can see the $500k expectation topping $2m and next year really multiples of that.
Also not sure it’s of any worth(soccernurds!?) but Tarana nestled in with the biggest of the big boys in this market outlook.
https://soccernurds.com/science/3375749/5g-infrastructure-market-outlook-to-2028-affirmed-networks-inc-analog-devices-inc-att-inc-china-mobile-ltd-fujitsu-limited-hewlett-packard-enterprise/
Tarana being tested for Cali rollout
https://www.lightreading.com/5g/geolinks-to-test-taranas-fixed-wireless-tech/d/d-id/768373
Dallo
Sounds good to me.
The delivery bit that is, not the dilution bit!
GLA
Uhlf
Agree market cap at 50p is £25m but placing would be to dilutive and maybe drop it back to £20m.
Semantics I admit but the next few weeks will tell a tale.
Time for action from management and I fully expect them to deliver.
I hope you are correct TL.
Perhaps this is an issue, and a vital one to investors, that ENET need to give info and clarify to investors.
And hopefully not wait till the AR are released at the ridiculous date of almost 6 months past the year end.
I guess that it all depends on cash flow and how much they receive in design payments from the server manufacturers. I think that the chances of any further cash requirements beyond what we know as slim. Really once the initial production costs are covered for Tarana they will be cash generating.
Hi dallo
And thank you for your thoughts, much of which I agree with.
Regarding 5G, unless I’m mistaken, re ‘... has not crystallised its shares at the current low SP for a reason’, we simply don’t know that, unless you have further info. Liquidity , give or take a few days, has been up and down and clearly there is a seller out there. Now whether that’s 5G or not, who can say? The 100k today could have been them. Clearly from the maths exercise 5G have been a seller, as they have been issued with more than 3% of the shares yet have not declared.
Don’t get me wrong, I like your scenario that 5G are biding their time, waiting to exit , as you say, at higher levels into a liquid market fuelled by deals. But we simply don’t know their intentions. In fact we know nothing about 5G but we hope they are beneficial and there is some evidence to support that stance.
If they appear not to want a sizeable holding that could be because they don’t want the possible scrutiny and reporting obligations that come with a declarable stake, or , as I think you and TL(?) may have suggested, if Tarana is behind 5G, then they may not wish to declare commercial interests. I think it is the opaqueness of the 5G deal that causes some concern amongst investors. Here we have a major investor and a potentially significant shareholder yet we know next to nothing about them, their intentions and their plans. I’m quite prepared to accept the deal was a worthwhile one and probably remains so. All the same I will be glad when ENET have alternatives and if they never have to take up the further £1.5m I will be pleased.
Re your further thoughts, the market cap at 50p is in fact more like £25m, but I take your underlying point that it would be better to raise off the back of deal flow, and, yes, a £1 or more would be lovely. The last placing was done at a whopping 37% discount at 12p, perhaps their backs were against the wall on that one. If they raise again, from a position of strength, then there is no need for a discount at all, imv. I’ve been in plenty of situations where institutions/HnW are happy to get in at a placing at zero discount in order to get stock in quantity. Ofcourse the brokers push for a discount for ‘mates rates’ to feed their buddies. This is where management need to be strong and stand up for themselves.
Anyway, hopefully interesting times ahead!
GLA
If Ethernity was to organise another placing when SP was 50p say it would be too dilutive as Market Cap would still be only £20m and would have to issue at a discount.
Better to wait for the deal flow which is coming and raise enough funds ( £10m) at £1 plus to see it through to the next level of perhaps £50m revenues.
Just my thoughts.
DYOR
Uhlf
The warrants and 5G between them can provide an extra c£2.2m in "reserve " funding in the near term .
5G is a funding investor that has not crystallised its shares at the current low SP for a reason .
It appears it does not want a sizeable shareholding and will be issued shares at much higher SP levels.
So in effect Ethernity has organised a "placing " in advance and 5G will exit at higher levels as deal driven liquidity in the shares escalates.
I expect a placing or rights issue later in the year as business volumes multiply exponentially but at a share price in excess of a £1.
IMHO
DYOR
PR
Re low ball offer, good, I’m pleased to hear it! Like to ride this baby all the way to the top!
That should be a long, long way north of here.
Globally applicable tech selling at corner shop prices, crackers.
Although some are selling, just noticed 100,000 @ 31.25p
5G?
I hope ENET don’t have to take up the further £1.5m option with 5G and we can kiss goodbye to 5G. Ok, they’ve served a useful purpose but like to think we can either be self funding in the not too distant future or issue say 5m shares at 50p or something north would be even better.
Prefer things to be straighter and 5G muddys the water.
One point to add to trading1987's post is that the few nano-cap specialist funds often prefer to inject money directly in a placing rather than buy in the secondary market. But all that changes once a company is cashflow positive and self sustaining.
uhlf - it seems to me that there is zero chance of a lowball t/o in the near term; zero chance of the board recommending the offer and zero chance it will find enough shareholders fed up enough to accept it!
And thanks for that summary trading, makes a lot of sense. Atb
TL can you separate out what will need 5G and what or who would be satisfied with the amount of data that can be received by the Tarana solution? Is this actually even more ground breaking than first thought and will change the course of the 5G rollout , and more so in the west?
It's important to understand that G1 is not cost effective because it is cheap. It's cost effective because the operator doesn't have to buy spectrum to use it. It sits in the public domain. In extra urban and rural it saves kms of fiber for a handful of connections. A business like AT&T can bring in millions of connections. 5G mobile is not an alternative because it has a range of about 100 metres not 15 kms. The Tarana solution comes into the building, 5G doesn't penetrate walls.
Tend to think this needs private investor interest to take it to the next level.
Yes, things like ST/IC, Techinvest , brokers notes etc can’t hurt. But think it needs news that captures PI’s imagination. In that case don’t think it will need brokers notes as boards such as this one are a good way of disseminating the investment proposition.
Once the snowball starts, it will grow and it could grow rapidly. The balls firmly in ENET’s court to set things off.
Not a bad week btw, let’s hope for further good news in the near term
GLA
I think they should do conference calls. That would help a lot. They told me they were working on it
Trading, agree very niche and off the radar, broker reports at this level are pretty poor.
I am an investor in MINI which holds ENET, two of their largest holdings are israeli KAPE and MWE, as as one of their larger shareholders thought they might have regular investor calls etc and dip in - I don't think they applied for additional shares in the funding round.
Agree a ST write up, not that I am a fan, would make this fly.