Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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"Importantly, Tiwari said Tarana is planning to sell its offering as an "infrastructure as a service," where providers can deploy a network with the company's technology and then pay Tarana a monthly fee to operate the network. That – coupled with the low cost of using unlicensed spectrum – is designed to make Tarana's fixed wireless services economically viable"
Interesting idea and fits with ongoing royalty for Ethernity. For sure this is not fit and forget and other income can be generated from software work.
I’m hopeful ENET will get some coverage in this month’s Techinvest, which is emailed to subscribers after the market has closed today.
The board is the best I’ve read for a very longtime, again, many thanks all.
To add a little bit of insight to why ENET hasn't rallied with huge institutional interest - sorry in advance if I'm telling anyone to suck eggs here. A £15m m'cap means a very small number UK Focussed nano-cap funds have ENET as a possible investment in their universe. These fund managers rely on broker notes in the first instance, and then do proper due diligence - so the VSA update notes will start to help, especially if they are able to report possible Tarana revs etc etc. Unfortunately until we get to c.£50m+ (i.e. £1/£1.50 per share) we probably aren't going to have a huge amount of institutional interest.
And in terms of the regular punter out there, its difficult for ENET to appear in their cross-hairs (although there was the IG article previously), and also unless there are clearer figures, most just don't have any idea on the opportunity set (and I don't too, but this Board helps ALOT!!) which makes me very thankful for enet to come into my path. Obvs a nice write up from various newsletters, coloumns might help - Simon T of IC did one for MWE (another israeli small cap on AIM), and that doubled over the next month.
Is the Tarana solution aimed at places with low infrastructure? The quoted speeds, 5Mbps-100Mbps are relatively modest compared to say super fast broadband speeds of 300Mbps available in some locations in uk.
Mine is a more modest 70Mbps.
The S. African starting price of c £20 / month looks competitive enough to me, but that’s without knowing the local market.
Any views on any of the above?
It actually rained here a bit earlier but 24° whilst raining. Now I have sandy windows and top deck. Itching to head east but it is very safe here and I promised no more two weeks in a plastic box.
When you look at what’s on offer and the near term opportunities then I think a ‘fair’ price right now would be £1, £50m m.cap, with plenty of opportunity to go on from there. I think TL’s £5-£10 looks a reasonable target. Esp when you add the DU opportunity in, which looks like it could be another massive opportunity for ENET.
Back to reality, L2 weakened on a 8,000 share sale, least I think that was the culprit. Barmy.
I can’t think the good news around ENET can be kept quiet for too much longer.
Just hope we don’t get bought out before we reach our full potential. Whilst a few quid is better than a poke in the eye with a sharp stick, I’m well up for TL’s £5-£10. How’s that for British optimism! Mind you, suns shining today!!!
https://mybroadband.co.za/news/wireless/385012-why-supersonic-air-fibre-will-be-better-than-uncapped-lte-and-5g.html
Well worth reposting. Who can spot the Ethernity patent in here. I suspect the the pending application was why they choose Ethernity and the award in August 2020 was Ethernity ticket to ride.
Tracy, agree.
Have always seen the potential, and like yourself invest in people and saw what David had achieved in the past but still saw the risk. As I say was happy to see what the share price was year by year without getting ahead of myself, but coming round to your estimates.
What has changed for me recently, apart from the going concern issue, is simply volume across multiple opportunities.
Many thanks for your posts, enjoy the med sunshine.
Skid you will see that all the time I was bang on the money. Won't be long now. Looking at £3 from £1 looks very different from £3 at 30p. I rather look at where this is going than the share price. I see Ethernity with 2 unique products with huge potential. I don't see the current valuation as significant. Looking back nobody will.
Uhlf, strange this is still at £16m. I thought it would go up to c 35p on the news as, as many have pointed out, this puts the going concern issue to bed or as a minimum completely change s this risk.
With the great conversation here and looking into Tarana amazed this has not gone to 40-50p, but this has allowed time to move more shares to my IS A and make top ups.
Always been a little dismissive of Tracy's wilder price expectations As I was happy to take this year by year. But I can see what the market cap would be at profit of £10m, £20m, £30m as this level of profits would not need that much revenue with a high margin products.
Amazed we have not seen some more action from institutions here, surely if their analysts understood the potential they would start building a position, £160k gets you 1% here!
Really looking forward to further updates this year.
Come on ENET... lets bounce up to end the week on a high :)
Absolute air 2 is still available and is the "other" I spoke of. Anything else is just WiFi with extenders and reflectors. G1 is a gamechanger. AT&T will be all over it immediately.
Link from outlaw investor on advfn
It’s from 2014, not seen it all the way through yet as I’m supposed to be doing something else!
But his links are usually interesting
https://youtu.be/_DzwwAykEXc
Great reply TL, wow!
The depth of tech in this company is really something quite amazing. £16m m.cap?
Unbelievable, therein lays the opportunity.
The solution has been custom built from the ground up. It is in no way like anything else ever built military or civil. It increases the range of anything similar from 1km to 15km, has a 10x capacity and supports up to 512 parallel connections each exceeding 1GB. It also has sync tech to ensure that transmissions are complete. It also has high levels of security to ensure that only the intended recipient is connected.
This is an absolute industry leader. Make no mistake and it will attract a price. Ethernity has built this exclusively for Tarana, that will attract a price. I don't see it below $2000 Inc royalty.
uhlf - agreed, quite reasonable to assume Ethernity customised/calibrated the solution to Tarana's exact requirements.
I like your question: "Is there any real difference?" As you say, in the grand scheme of things, as the Tarana opportunity snowballs, and as other trials firm up in orders and as the scale grows you'll be too busy counting your profits to worry about the unit cost!
Thanks PR
I was taking it that this was not your bog standard ENET flow processor and assume the development took some time and was therefore ‘unique’ rather than ENET’s off the shelf solution with a few tweaks here and there.
I guess how different and how much development work has gone into this solution would probably give us a clue re the final cost per unit.
Tarana can get packet processing software on FPGA from other suppliers but chose Ethernity's solution because it is best in class and comes with a patented way of packing onto FPGA that others cannot offer.
There are no limitations on Ethernity offering its ENET Flow Processors to others - indeed it already does! There are 700,000 implementations (in one form or another) connecting over 100m people out there!
Considering that Tarana's innovations in radio antennae design is in and of itself revolutionary it speaks volumes that the Ethernity was deemed the best choice that complements their product. The same conclusion will be made by other OEMs and integrators.
Good to read the debate on Tarana. I guess if ENET had been able to furnish a few more details then we wouldn’t be having this conversation, must we must assume commercial sensitivities with Tarana preclude a more insightful view on this deal.
Must admit, like the sound of on going royalties, makes sense to keep ENET’s attention and work on the next upgrade version.
I do quite like the equate the cost per unit to cost per home, was thinking about that as I went to sleep last night, sad person that I am! At $500/throw that’s $1 per home, hardly expensive. Whether it’s $500 or $2000 or whatever, it should be a big deal to ENET.
25m homes @ $500 unit price is $25m to ENET. If that’s the bottom of the range, this is a big deal.
If this deal was for ACE-NIC -100 cards for 5G the shares would be flying by now, certainly well over 50p and climbing, imo.
Is there any real difference?
Correct me if I’m wrong, but this is exclusive deal, I’m assuming Tarana can’t go elsewhere for the same kit, patented, produced together etc and I assume ENET can’t sell it elsewhere.
I’m just trying to get my head round this, surely this is one massive deal and at a stroke has helped to massively derisk ENET?
We need DL or anyone else to do an interview or something and confirm what we think we know!
GLA
Interesting to look at "typical" mass production curves. It normally has 5-10% allocated in the first three months. So achieves $4m -$8m this tear based on $400k and 12 months 5000 units. Assuming early Q3 means mid July. Certainly significantly more than the December projection.
Bid I believe that they were more at the time.
Yes the fpga are low cost. However Ethernity don't make fpga.
Presumably it wasn't a $1bn valuation back in 2017 and also not their flagship product. It was still good business for Ethernity even at $500-$1000 per card
"Ethernity has provided Tarana its unique silicon-tuned software, which, thanks to the efficiency of the ENET Flow Processor design, fits into ***low-cost FPGAs***. Working in concert with Tarana's radio technology in its tower-installed base nodes, the ENET Flow Processor provides advanced networking functions, traffic control, and management for up to 512 homes per ENET SoC."
$2000 a card is 5000 x $2000 in 12 months. Do the maths.