The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Uhif I am obviously missing the point. 5g IF don't care what the strike price is . All that's important is that the share price heads up after. They can't take shares until they sell down or they go over the reporting threshold. Of course it won't say Tarana on the notification anyway just 5g IF but they don't want the attention I am sure.
Certainly the Ethernity management will have a lot of distance between themselves and 5g IF. I think that you are thinking way too much about this. It's a temporary that will change very quickly.
Uhlf.
A cash raise is not straightforward as you have stated.
It would have to have been at a massive discount to current price meaning more shares vs cash raised. It also does not give certainty as some shareholders would not subscribe, even at deeply discounted levels. After the earlier cash raise it also looks like the management have completely misjudged cash flow forecasting, ENET have not been in a position of strength here.
https://www.lightreading.com/open-ran/axis-of-o-ran-japans-rakuten-to-build-1and1s-german-5g-network/d/d-id/771297
Iain misses the point here. The function is that is Integrator. The outputs are Open so a potential market for Ethernity. Private networks will form within this network. Great opportunity in Germany.
I disagree about the chances looking slim. 5g IF can pass very quickly on strong news which attracts volume.
We have seen days of massive buy to sell volumes and it won't take many of those to clear. The terms of the deal are quite standard and they are maintaining an orderly market. 5g has no interest in trashing the share price and will pay the going rate minus a discount as we know. I don't think that this was about making huge profits. It was about funding Ethernity so they could make that very nice FPGA switch for Tarana.
The management needs to talk and explain but it's all about timing.
We are going to doesn't cut it, we are doing is what we need. Unfortunately they prefer we have done.
We have Interims in September and I am expecting a piece of plus news this month and a second piece with the interims or immediately after
Certainly things look very positive currently. The market is moving and clients are now at commitment stage.
The next 12 months will transform this investment.
I can see why the 5G was structured as it was, given the situation at the time, which was at least partially ENET’s fault for letting a massive slug of cash at ipo run down to next to nothing. What has surprised me is that it looks like both parties agreed to the further £1.5m, at a point where a straightforward cash raise would look more preferable. One does have to question the overall financial strategy but we are not privy to the full details.
Going forwards from the AGM it sounds like they are not going to put any effort into ir beyond mandatory releases and RNS and it will be up to the market to decipher and make sense of that. Methinks they are absolutely barmy if they think the market is going to understand the investment proposition here without help and guidance.
As TL says, initial orders are, by their very nature, modest in size. Given the massive 5G over hang and ENET’s reluctance to properly present themselves then we could well be in for a very long wait. To clear 5G we need substantive on going news to give the volume to wash them out. The chances of that look slim. There’s always a fair chance ENET will try to hide good news in a RNSNON or interview.
Given that they are not stupid people, one can only assume there is some other agenda at play here. The most obvious one is some collusion with 5G to deliberately suppress the sp until ENET’s masters, 5G, give them the go ahead.
All very strange and I guess we will be becalmed in no mans
land for quite some time. Or perhaps they might change tack when they’re after more cash.
I am encouraged to find out that the first adapted aceNIC for the DU is in its final form for a North American vendor and will now be involved in a test environment. This is working towards starting deployment Q1 22. I believe that this will be in two forms and will test Ethernity virtual router against an external router and another virtual router.
I assume that this is an ongoing process.
This is interesting because the Ethernity side will be the design of the fpga device, the license and royalty and the code on the device. These are all high margin. The manufacturing will be by a volume fpga vendor, this is the investment lower margin side.
This information is not from the horse's mouth but from someone close.
Bit of a paradoxical question re 5G but at this stage you do wonder if a more straightforward dilution would have been a shorter sharper pain , I think uhlf has pondered the same in the past. Still hope for more of a reason to the tie in ie a concrete link to Tarana and bigger deals in the foreseeable . Atb
A takeover without the major shareholders would be tough. The corporate actions that we see are compliant and about money and commercial leverage.
If Ethernity were taken over it wouldn't be by an end user it would be by an FPGA vendor or a substantial integrator like Tieto.
It definitely wouldn't be below £100m.
I do wonder what the share price would have been without 5g IF selling. They certainly have altered the balance and contained several breakouts. It's difficult to make headway into the wind and at the moment they use a strong engine just to maintain.
Low volume and a huge overhang has killed the short term prospect. Only strong news can set them free.
However news is all about starting volumes, first orders and we know they are modest. A couple of million won't cut it.
Quantas what does the wrong end of an aggressive takeover look like? Sounds painful…
They've only themselves to blame if they find themselves at the wrong end of an aggressive takeover.
https://www.fiercewireless.com/operators/rakuten-to-acquire-open-ran-vendor-altiostar
Corporate action. Ethernity must be very vulnerable at the moment. Management need to get the share price up if they want to defend their hard work.
Dallo it's very true previous deals were supplying a one off solution with a fixed volume. Now they produce a family of products and adapt to the client specifications.
Example being the UEP-60 used as a IDU radio. Not really what it was designed for but adapted to deliver within the clients device. This is a big name vendor who I had down potentially as a competitor. This is how it's working now that the requirements for each product are so specific. This vendor now has a unique product that's an absolute leader. Ethernity get fee, royalty and exposure to all their installed radios and new markets.
Sales will be over probably 5 years and will likely be $25m or more to Ethernity.
These OEM deals like Tarana are open ended. This is very different to a deployment with a Service provider which has a fixed volume. In fact Ethernity will often reduce the volume through superior tech.
Long ago I talked about Ethernity being further upstream than competitors. This is a longer route to market but the market is much much larger when you arrive.
With the relatively new system based strategy overtaking licencing deals Ethernity is only really starting it's journey now with 3 big deals concluded with the Indian OEM , Tarana and the recent UEP 60 deals with potential revenues going forward of 10s of millions of $ dollars.
I wished the management good luck at the AGM and said keep the deals coming to which Levi and Mark said they intend to or words to that effect.
Levi said the new business model should lead to 10s of times the previous deals in revenue terms.
The R&D was costly but now begin to pay off and it is now all about deal flow which I have been banging on about for months.
I fully expect many more large deals to be announced in the coming months which will validate the investment case.
The only issue is funds and maybe we may have a fund raising at the back end of the year which existing shareholders can participate in but not at current SP levels but at significantly higher levels.
So deal flow now crucial and I expect management to deliver.
Dyor
Imho
roddel that's exactly how this is. The market doesn't understand largely because Ethernity have not bothered to inform them. They have a very broad and very attractive portfolio but within a very specific market that's just opening.
Forget Tarana that's a wildcard project. The rest is 5g or connected to 5g. 5g networks are so much more than the accelerated 4g mobile network.
The market starts now but will be small until 22 when well see several huge deployments and many private networks.
Currently we have really just test scenarios.
That was my put through trade gents (similar to B&I)- Have been trying to keep the faith as the product family clearly has a wide and potentially lucrative application, even if mgmt are trying to hide that fact from the masses...
Yes bed and ISA and why not it's perfect for that.
5g has signature amounts, better than average price and the same price for both.
Yes the 33k looks like a bed and isa to me
Although could be roll over or bed and isa given the small but different prices.
Meanwhile 5G double tap just gone through.
Emerging market shares are always the same. Very similar to building a gold mine. All money out then eventually you start production. Looking at the income whilst building is pointless you have to project forwards. The market waits for contracts. We have clear visibility over where those contracts are coming from. The missing link to disseminating that to a wider audience.
Why don't Ethernity shareholders know that Tarana has huge interest in G1. Why is that hidden from the market. It's easy to see that Tarana sales will increase dramatically from one broadband provider to 25 with multi million market potential.
Ethernity must engage the market, not with tech updates or human interest stories but with business development information.
Why and how Ethernity are going to grow sales once their market opens. The first Tarana is open and we see that it's huge.
To be brutally honest Marcel could buy back in now a lot more shares than he sold for the same cash, he still would be fretting on hourly price moves rather than having some patience (which is a prerequisite for an ENET shareholder).
Problem is he might not be able to do this if he is waiting for news.
Short term there's minimal support. I think people are seeing September as next news at Interims. I will take more at 35 if it happens but I have enough already at 20's.
I am very tempted to top up at this price but think I will wait a few days to see if we hit the mid 30's as that would be a 100% top up for me. I am lost for workds that we are under 40P again.
last time i topped up it dropped aanother 3-4p the following days, so going to watch a little more this week I think.
This message has been filtered, please adjust your filters to view
Phew that's better
Embarrassing return for Marcal.