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Stairs up, elevator down.. that's a bit of a shock on a Monday morning, urgh
Second reaction, a very strongly worded letter to david, Mark and the chairman this morning.
First reaction, after the company stated it had adequate cash resources for 22, is very poor - both in the discount and treatment of existing shareholders.
How could they have got simple cash flow forecasting so wrong, unless the underlying business (potentially both + and -). The "general purposes" explanation required a tonne more detail.
Not impressed.
What a disgustingly structured and described placing, showing real contempt for the ordinary PI shareholder here.
It may be a 20% discount to the SIX-month average sp, but it's 33% to Friday's close.
And of course it will be over-subscribed, with that degree of discount, AND, with a 1-1 warrant attached, to boot. Do the authors of these RNSs think that PIs are that gullible?
Unbelievable arrogance.
At least it should stop 5G selling!
The placing is not a massive dilution but the discount is outrageous ??
The twists and turns of aim eh. If I make it without having a stroke I might write a book about it. Good luck all
A quiet end to what has been another good week for ENET.
3 x 50,000 trades now showing, one at 52p and two at 52.5p.
Doesn’t look like 5G’s usual modus operandi but who knows?
Looking forwards to that increased newsflow as we are about to enter the last three months of the year.
GLA
Well said skid, have a good weekend all LTH's.
Owl, realise short term price movements are pretty irrelevent, but encouraged by a) the volume b) the price holding its gain and c) a few new holders individually taking around the 1% mark.
I know we have said this before, but would be nice that we have permanently seen the back of the forties and this forms the bottom of a new trading range. With additional news hopefully see this in the 70/80 with those having enet on their watch list taking the plunge.
As a lth I know it's stupid, but psychologically just nice to be in a decent level of profit after being in the low forties for what seemed to be ages.
Anyway looking forward to q4 with great optimism.
Exactly how the share price rerates this. Step hold and step again.
I'll take a bit of consolidation in the 50's any day of the week.
Been an interesting week for the SP, today's been as flat as the Lincolnshire Fens for activity though.
Interesting interview
https://www.lightreading.com/open-ran/5g-world-mavenir-evp-dishes-on-open-rans-technology-advantage/v/d-id/772302?_mc=RSS_LR_EDT
EDOM technology in Taipei are involved in the access to UEP in China. I don't know in what capacity. The Chinese industry press carried the UEP report extensively. The amalgamated all the UEP user cases so far to create a confused picture. I guess as they all made the same mistake there's one source.
Also noteworthy for China there's no problems selling to them. It's installing their kit in western networks the protectionism (concern) is about. Certainly China will not allow US business into their market in retaliation but Israel is outside of that scope and we need to remember that Ethernity don't sell directly. The model of delivering complete solution for another to brand is universal.
Importantly in China they rushed headlong into 5g adding compute to maintain speed, width and latency. However this is unsustainable and now they need to act.
Most of the rest of the world are building the future network immediately. That's the main reason for the shift east to west.
Ethernity will do very well in China and have moved on in leaps since Vbras and UPF.
Great discussion and quality posts, exactly what these BB’s are supposed to be for but all to rarely are.
An exception here with an exceptional company as well
GLALTH
Tarana is of course exciting because of its potential to sell many units but we need to remember that it is not a solution but a functional component. It's really the old business. It will generate tens of millions or more into G2 but compared to the potential of UEP that I suspect will ultimately be sold to hundreds of OEMs to be branded and sold through their network of clients. The beauty is that it not a single market and Ethernity can seize the bulk of the volume.
The change in focus geographically and achieving the IPO goal of complete solution has been discussed here at length. The US were well behind and have only advanced because of government intervention and encouragement.
The US listing of Fiberhome that I disclosed to this board left just direct engagement and TietoEvry UPF collaboration which moves ahead at pace now. A private network deployment will be Q1 using aceNIC based UPF and TietoEvry are Integrators. Obviously DU and other products may also be included.
Ethernity has no more to prove than anyone else. They don't have a huge cap to support and a diverse portfolio.
The trend line has been picked up again and will reach 65-70 with no news even with a strong seller. Between 70-60 there will be a trading opportunity for those brave enough to gamble against newsflow.
I hope next news is a production order for UEP in a different role.
Tracy
Your research has been excellent over the past 2 years but Ethernity changed its strategy 9 months ago which few investors were aware of.
The trust of many of your posts last year were Chinese related but now no Israeli company will upset Uncle Sam so focus has changed.
The market will not extrapolate future revenues without evidence and concrete deals showing recognisable income particularly in a little known micro cap
Hence the market is saying to paraphrase Ronnie Reagan " trust but verify".
I expect verification in the coming months.
As someone who has been in the markets for nearly 45 years I am happy with my investment here but work needs to be done and I have backed Levi and the team to deliver.
Thanks as always for your superb research .
ATB
I guess that I am researching and developing a completely different company to everyone else. Tarana is small compared to UEP which is the Industry hot topic at the moment. The DU will be around Christmas and will gain traction quickly into Q1 US deployment.
The UEP news was huge. This is a whole family of products and Ethernity are clear Industry leaders. UEP will be £50m a year in 2 years time. Next year maybe£10m.
Indeed Bid! With reference to the news flow it feels like there is somewhat of an amalgamation effect occurring . Last fridays RNS wasn’t a blockbuster but since then the whole sp movement has been way stronger. As Dallo says keep em coming . Just imagine this week without the IF sells . I would have been on my way to paying off the mortgage money!! Atb
Another blue day and another 100k sale (plus the 2x 27.5k) from 5g fund (we assume). Can't be bad..
Sergi
I have been banging on for the past 2 years about the necessity for the Ethernity IP to be validated by firm orders and revenues .
Due to the change in strategy late last year it has taken longer than we initially thought to see firm evidence but this is finally coming out of the shadows with the recent news.
Now let's ramp things up with further positive newsflow and off to the races we go.
ATB
Dallo
Fully agree. What the market is pricing in is the first stage of development. Field trials are succeeding and the first production orders are coming in. We didn't have that the last 4 years. But still, the derisking is not here as I said yesterday.
I think Tarana will be the first one giving significant numbers. Then I hope to have news about the DU and other segments (Indian OEM, avionics, china, licensing).
Plenty of upside at a cost of still risk. When risk comes down, the share price very up. IMHO