Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Due to the repeated critisism, I feel for the sake of balance and fairness, someone needs to fight DL's corner.
Some people on this BB have no knowledge about the realities of a placing. Or maybe just need a reminder.
The broker is approached with the plan and they sniff out the price they can get it done. With a price agreed, BINDING contracts are signed - If the price spikes up there is NO option to renegotiate the placing price.
It has to be this way because the inside parties (e.g. II) may potentially have to sell other assets to buy placing shares. You cannot turn around to these people and say 'two/three private investors caused the price to spike up this week so the placing is off, unless you now want to pay 50% more'. They are not going to shift money around with the chance that a SP spike occurs and the placing is called off, that is why they use a discount based on VWAP - to minimise any spikes. It works both ways. In a parallel universe the placing price was set and the price tanked due to more serious unrest in Lod. The buyers are committed to the price regardless that is it now 20p on the open market.
DL decided on a placing that diluted his holding for a reason. DL is a large shareholder and has more information than this entire BB but some still seem to think they know what is better for shareholders. Think about for a second - are you seriously suggesting you know better than DL about what is good for shareholders when he also took the hit?
The repeated whining is coming from individuals who can't grasp the above points and/or refuse to take responsibility for their investment decisions.
The time for whining about the placing has passed. Regarding the placing, I have come come to the conclusion that posters that still think DL was 'stupid' to do it have a learning disability and/or personality disorder, in which case I wish them all the best.
GLA
Sittin and waitin.
TL - would you prefer they are connected to the future or to the current short term market?
Sometimes, to seize an opportunity you have to place emphasis on the former. I am at a loss why I have to explain this simple concept.
DL has all the inside information - you have none, so why do you think you are right and DL is wrong?
TBH, if you dont understand this and AIM's habit for unexpected placings you should give up investing on the AIM and stick to sailing.
ENET is a potential x20-40+ bagger for a reason - there was/is risk - IMHO still the best risk/reward on the AIM.
If you have no faith in the management then why dont you sell up - seems odd you want to still remain invested with 'stupidity' at the wheel.
Anyway. I'm off to sit and wait. See you at a higher SP. I have made my points and repetition is tedious.
P.S. regardless of the above good luck and take care :o)
The assumption must be that a deal/opportunity appeared and it needs funding now - there are massive advantages for first movers. Waiting until the cash trickles in might be too much of a delay.
I suggest watching the video and reading the slides again - there are enough dots in there to start connecting to a new bigger picture. They have a new high margin strategy - my guess is the placing facilitates this and the dilution that DL took was worth it.
We can only hope that a fat contact is announced in the not too distant future - hopefully with ENET more tightly engaged on the manufacturing side to enable fat margins and profits.
The price action is typical of a placing - shares getting churned for a quick profit to a new batch of investors. I bought TEK and HSS after their last placing..... will be the same here....tread water for a while and then onwards and upwards.
Don't let your emotions get the better of you - everyone gets caught out every once in a while. I draw your attention to No4:
Im a big fan of Jesse Livermore. Here are nine surprising things Jesse Livermore said regarding excessive trading:
1. “Money is made by sitting, not trading.”
2. “It takes time to make money.”
3. “It was never my thinking that made the big money for me, it always was sitting.”
4. “Nobody can catch all the fluctuations.”
5. “The desire for constant action irrespective of underlying conditions is responsible for many losses in Wall Street even among the professionals, who feel that they must take home some money everyday, as though they were working for regular wages.”
6. “Buy right, sit tight.”
7. “Men who can both be right and sit tight are uncommon.”
8. “Don’t give me timing, give me time.”
and finally, the most important thing:
9. “There is a time for all things, but I didn’t know it. And that is precisely what beats so many men in Wall Street who are very far from being in the main sucker class. There is the plain fool, who does the wrong thing at all times everywhere, but there is the Wall Street fool, who thinks he must trade all the time. Not many can always have adequate reasons for buying and selling stocks daily – or sufficient knowledge to make his play an intelligent play.”
As far as I am concerned the placing is a bit like a 'sacrifice' in chess, you can try and work out why DL did this but he has all the info and you/we do not. There will be a bigger plan which will unfold over time.
Without all the info, our veiws on the merit of the placing have limited validity.
GLA
Problem is TL - you dont have the same view of the chess board as DL.
A potential placing was always the No1 investment question - the fact you chose to ignore this is your fault.
FV et al - I have not been able to buy any shares - the dilution was not good for me.
The possibility of a placing was in a previous RNS - regardless, I decided to be fully invested with no access to liquid assets.
I gambled that there would not be another placing - I got it wrong.
Point being, that being fully invested and not keeping some powder dry is an investment decision with associated risks.
Thats what has hurt people - if you could buy more shares to keep the same % holding then all great - if not then not so good but at least there is a solid financial platform to hopefully a great SP rise.
Let's not forget, DL took the hit - so all things considered he must think it is worth it - we will have to trust his judgement.
I reckon it will all come good.
GLA
Anyone used fineco?
https://finecobank.co.uk
Best online broker for dealing ENET shares? Experiences?
Dallo
I 100% agree on the rights issue or any mechanism that guarantees existing shareholders first refusal on any fund raising.
Loyal shareholders should not be fleeced if a raise takes place - this would also stabilise the SP if the need for cash arises e.g. a manufacturing facility. Would also push up the SP if they came out and mentioned this as a de facto next strategy if wad is required.
I am still sitting and waiting - I hold a decent amount :o) Not sold any.
Here are a couple of dots for a potential buyout:
Dot 1: Who did David Levi sell his previous business to?
Dot 2: From the previous results:
'FPGA SmartNICs are often considered as high-end and expensive compared to SmartNICs that are based on multicore programmable ASICs, but Ethernity's approach to the SmartNIC market enables the use of FPGA SmartNICs at the same price point of ASIC-based multicore devices such as those offered by Mellanox and Broadcom. The goal is to change the paradigm and to allow FPGA SmartNICs to capture larger market share compared to ASIC-based SmartNIC offerings. '
5g have to stay under 5% - that could have happened selling on the open market.
5g must keep an orderly market.. I have repeated this many times.
Fact is, patt is guessing... 5g strategy is only known to themselves.
The results are exactly as I expected - 'Fish and Chips'.
Nothing has changed - still a pathway to a massive multibagger.
The RNs was a long document that nicely summarises the situation - will be of some use to II's - with some decent juicy reminders of potential e.g.:
A recent report published and as highlighted in our Blog https://ethernitynet.com/market-for-dus-in-openran/ calls for 1 million DUs in use by 2024 (excluding China), representing an average 400,000 DUs per year during 2023/24. In this market Ethernity is positioned as a differentiated and innovative offering with integrated routing and security offload that utilises our existing IP.
Been busy.
Sittin and waitin.
Sold zero shares.
The story is unchanged... price just bouncing around because 5G selling and people impatient for news.
All very predictable.
What will the results be? Feast, famine or 'fish and chips'?
I reckon the last.... the fireworks will start H2. CV has slowed things down so delays in updates expected... but they are only delays and will not affect all ENET business.
You dont have a 4-20 bagger on your hands if the path to good profitability is crystal clear... still a great risk/reward play.
Jesse Livermore:
Learn how to sit tight
After a wild and lengthy rollercoaster ride as a speculator, Livermore believes he has found the secret to his success. It’s obvious he’s excited by this discovery, which he eagerly shares:
“After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: it never was my thinking that made the big money for me. It was always my sitting. Got that? My sitting tight!
“It is no trick at all to be right on the market,” he adds. “I’ve known many [traders] who were right at exactly the right time, and began buying or selling stocks when prices were at the very level that should show the greatest profit. And their experience invariably matched mine; that is, they made no real money out of it. [Traders] who can both be right and sit tight are uncommon. I found it one of the hardest things to learn. But it is only after a stock operator has firmly grasped this that he can make the big money.”
Tarana MTN Supersonic Air Fibre Video
https://techcentral.co.za/calvin-collett-unpacks-supersonics-air-fibre-heres-how-it-works/107490/
I have not sold a single share.
The Israel situation arose and we know 5G most probably have to sell a chunk before their next tranche. Liquidity thin on the sell side while Israel situation going on and waiting for next RNS to put wind back in sails.
It is not an un-normal retrace regardless of events.
We have had some people admit selling, at least on the ADVFN board.
GLA
Ala CLX - IMHO an RNS that provides clarity on turning a sustained (even small) profit = + £75m
Great points TL and b
I should have clarified that I don't think there will be a placing, point being II's will have to buy via the market and building a position will move the SP significantly north.
I'm thinking if the Tarana cash plus other comes in quickly then no placing - II's like cheap shares via placings but funds etc will increasingly have to buy in as the MC rises - bodes well for a big jump an a stream of good news - still reckon there must be one or two RNS's on the way for 5g to sell into, maybe 5g know Tarana are going to place another fat order?
I bought a few more for a LTH. Also I was about to buy a £3k mic - cash went in at the recent low - I reckon that will be my only 'trade' - hopefully I get the mic at an effective 50%+ off :o)
This mini drop has released approx 2% of shares into the market - a decent chunk - I wonder how much into the SPIC?
Hmm.... 5g selling into this rise?
It will be interesting to see how long before new II's arrive to form their own sticky club. As the MC hits different milestones I expect they will be allowed to participate. We have been at £25m MC for a while so maybe we have some nibbles, but will be interesting to see how it unfolds at £50m, £75m etc
I also wonder if the MM are building a trading position?
Sittin and waitin
GLA