Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
"Design Win"
thanks! leaving next week :)
sorry I used eurgbp quote and not usdgbp
Should be: 3.3x P/S and 2.6x EV/S
ENET thesis update:
- 2021 Revenues expected at $4M, from which around $2-3M should be considered as recurring (licensing, and others').
- Tarana orders: $1.5M, "which they stated could increase further"
- UEP 60 contract: $1M, "with potential for significant follow-on orders and wider product offerings, this contract could lead to additional annual revenues up to $1.0m in 2022 and further growth subsequently".
- UEP-20 order after passing field trials: $0.8-1M.
- Customised FPGA SoC, $0.4M, "with additional orders anticipated thereafter"
- Indian OEM contract, $1.5M, some unknowns remain but strong acceleration expected according to IR presentation.
Total: $8-9M of current visibility, mostly from already received orders, which is assuming:
- 0% growth from licensing and legacy contracts such as aviation, PON, others
- 0% acceletation from Tarana...
- Further $1M order from UEP not executed
- 5G will contribute at $0... (china UPF, USA/Europe DUs), but ENET said they expected Revenues from that in 2022.
- no new deals
Main risks around components shortages and further delays on deployment issues.
I expect that the company will have c. $7M of net cash by the year end (no warrants exercised), but arguably this amount shouldn't be added back on valuation as it is necessary now for WC needs. I think 2022 is likely to be cash flow neutral (in terms of OPEX, not WC movements - building inventory), or very close to it, by the first time.
Therefore 2022e P/S is 2.8x at a very likely (and maybe conservative) $10M sales. A 50-60% GM supports a 30% NPM at scale. A 20x potential P/E is equivalent to 6x P/S. Obviously, they are not going to do a 30% NPM at this level of sales, but this is just to normalise valuation;
2.8x P/S at 30% margin would be 9x P/E... Stock Expected Return = if growth happens, multiple/margin expansion + part of that growth.
I think that currently ENET's investment thesis is much more compelling for new investors than during the last few years. Clear business model that worked very well to others, strong growth backed from already received orders, with follow-up potential, adequate levels of cash resources, and in a booming demand sector; all of these with a unique patented technology. To have a strong return we don't need anything dramatic, just to leverage current deals with the right execution.
In my opinion.
Today puts the placing in the history.
please don't speak again about that :))
"The contract specifies that Ethernity will provide the customer with the Company's ENET 4840 SoC with unique silicon-tuned software, which, thanks to the efficiency of the ENET Flow Processor design, fits into low-cost FPGAs that are capable of meeting prices of mass production and enables up to 40Gbps of throughput. The SoC will also come pre-programmed with the IPSec security feature and Ethernity's newly patented Wireless Bonding feature"
Complete solutions.
The SW should increase the Gross Margin nicely
Nothing dramatic but we didn't have these orders in the past. Something is changing.
https://www.londonstockexchange.com/news-article/ENET/new-400-000-order-for-customised-fpga-soc/15169445
plenty of supply...
I don't think this is the right mindset, but it is valid.
I want them, David, Mark, Brian, and all the enet them to succeed. I think they deserve it and I think they will succeed.
And look, If I can catch a few of their success and make a personal profit it will be fantastic.
Good luck Enet Team!
oh oh yes. As always. I will be busy from there since working remotely. I just said that because one friend is there already and had an issue today... It seems nothing serious finally.
Bid, my shares are not for sale! Just one of these needs to perform well to touch the moon... $PBX.V, CTT.AX, CHL.AX, ENET.L
I have my ticket booked, now it needs to take off only...! :yn
thx. Anyone has been there? Ive been said the doctors house is very good
moving to Sri Lanka in 2 weeks. maybe I will never see the recovery ??
I think it is a bit unfair to blame the mgmt just because the stock is down 40% on a non unexpected placing. If in a year we have not seen something and we can be sure that this was a mistake, I will be blaming as well, but not now.
Not crazy I think. Market dynamics.
Risks are there, shortages and 5G/networking is not an easy sector as well. Delays will be the norm here I guess...
Greg, a little background on you?
I think you are new here?
Well said but 20-40 bagger seems very very high expectations to me. With a bit of luck, 10x.
well, we are both interested in that. If you are right I will congratulate your research and forward-looking vision! :) Just seemed to be strange tho. thanks!
Tracy.... how can you say that you know more than them, the management, about Tarana? please.
uhlf
I think yes. But also don't remember. Most of the deliveries were for 2022, so on this side, it makes no sense.
I was expecting a new order from Tarana during Q4, but still, the presentation projections are "weird" and guess the opposite...
that's also my question fariview...