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Agreed. Sit tight and wait for news is my position. However long that may be. I won't be panic selling.
Would love to be building a position down here in the bargain basement but as stated I'm already fully loaded.
When it moves - due to its illiquid nature - this really moves.
The short term funding issue will continue to suppress this until either it's resolved or significant news lands.
They have the tech, they have the market.
I. Can. Wait.
Alca
Interesting in the insights newsletter released today ;
"We're working on perfecting our offerings for the CU and the DU, as well, such that before long, it'll be possible for Ethernity to accelerate existing 4G NFV solutions using its FPGA SmartNIC throughout the 5G Open RAN network. These are truly exciting times!"
A very good article from back in March, thanks for reminding us TL...I particularly like the bit about customers deploying SUBSTANTIAL money and resources building/basing their software solutions on Ethernitys ACE-NIC100. That's some upfront commitment and should testing in Q4 go smoothly, which we would expect it to given our world class expertise, mass deployment must surely follow in quick measure next year.
"David Levi, Ethernity Networks CEO, said: "With customers such as FiberHome and others developing their solutions based on our ACE-NIC, it shows that they have selected our solution and will market their software offering with our FPGA data plane acceleration code and software. Any such commitments are expected to generate material annual revenues commencing during 2021, pending the rollout of 5G. Ethernity is in active project engagements with customers who are deploying substantial resources and investment on their side to build an offering with our ACE-NIC that embeds our FPGA data plane acceleration, which is expected to generate revenue in multiples compared to the company's existing revenue flow from IP licensing contracts. Ethernity is focused on becoming the leading provider of Router-on-FPGA-NIC , and on increasing customer engagements now that we have the best-in-class system solutions to address these needs."
As I've said previously if I wasn't already cherries deep I'd be adding significantly at these low levels! Not that I would be able to buy in volume mind, the free float being so low. Tight hands holding these not least the directors with huge amounts of skin in the game and proven track record of building selling multi million dollar businesses.
Alca
Let’s hope so TL. Things are really starting to hot up now on the business front according to the results - the market for which Ethernity have been patiently waiting has finally arrived and will be unstoppable now. In essence it seems that the COVID-19 related delay to the Military/Aerospace T1 contact has resulted in the cash flow shortfall. It sounds like Sep/Oct will be the crunch point. Plenty of time to find a solution. They'll already be working on it...
Alca
...... Over and above IPO
Very laudable, especially on AIM, but clearly as often happens macro events conspired against them, and us.
This ticked all the boxes for me pre investment and I guess from reading your comments, for a lot of you too.
If I wasn't already balls deep in these I'd be adding at these rock bottom prices, especially once we have clarity on funding. This is because I still believe in the company. My average is 28p as I've said before.- Including some at sub 20p from a couple of years back. Never thought I'd ever see that price again. For good or bad I'm staying all in here. Crazy cheap for what it has the potential, and should be IMO.
Alca
I think the problem is that the "cusp" initially took longer than anticipated to emerge and then was further pushed back by COVID-19. Clearly their plan all along was to get there with no further fund raising / dilution.
TL you mentioned recently that you still envisage £10 a share being a viable prospect long term based on the sheer size of the future market. I'd always realistically hoped we could get to £3 plus in the next 1-2 years, and that was my target. Current market cap is a ridiculously low £6m but clearly that's because of the uncertainty surrounding funding (to bridge the gap to cash flow positivity next year). We know David has a proven track record of building value in businesses, having founded Broadlight and sold it to Broadcom for $230m.
Let's hope he can achieve something similar here with Ethernity.
Alca
I wonder if they'll need to raise as much as we think (e.g. £4m) given they've cut costs and reined in spending on R&D to focus on immediate markets to get them through to anticipated cash flow positivity in H2 2021 ?
I bought some of my holding years back at 18p and never thought I'd see anywhere near that bargain price again! The directors really need to get this funding uncertainty cleared up and fast. It's cratered the share price of a company that appeared to be perfectly positioned on the threshold of a technological new age. It seems on the face of it to have been very badly handled - i.e. last minute with regards to cash position. I am hoping its just a comms issue and they have been beavering away in the background- shortly to declare it all sorted. I'm up to my eyeballs in these already because I believe in their products and the future market, so would participate in a rights issue if offered to avoid dilution of my holding.
Alca.
One week to go until the EGM. At least by then we should have clarity on the innovation grant, and/or alternative funding plans. The sooner that uncertainty is removed we can move forwards on a sound footing to cash flow positivity in H2 2021. I sincerely hope a re rating would occur well before that with funding certainty achieved.
No man's land sums the situation up perfectly.
Share price wise it feels like we've been trekking across the foothills for ages with the mountain in sight but not quite as close as we originally thought. In June I feel like we will properly arrive at base camp. Thereafter I expect the assault on the summit to commence in earnest....