Member Info for skid35

Statistically the 35% increase in new customers is meaningless.
- Firstly it doesn't state over what period of time
- Second it is 35% of an increase. So a customer of 1 million increases by 1,000, 35% of this is immaterial

I hope SOH didn't say doritos rather than nacho chips, this is a brand name not a good category.

Hope underneath the lack of RNS is a strong underlying growth

Business trading update 11th may last year, hopefully "some" cheer but not holding my breath, and then the ST write up.
A lot of smaller companies getting trashed at the moment, particularly ones which have a poor performance record.

Hereshopin.
Agreed poor wording.
When they put this deal together I think they had a range of possibilities, we are in the worst 5% of those possibilities with the current price c18p and the potential to increase.
If this goes up to 25p on no news in two weeks time, and then an rns taking it to 35p the base price is still c18p.
After that Price protection as you say weighted on favour of 5g, especially as they exercise with the benefit of hindsight.

At the meeting MR was at great pains to state 5g had no relationship whatsoever with ethernity, tarana etc.
My view is still they needed to show cash on the balance sheet for a deal (hence upfront immediate cash), a cash raise from shareholders a no go and could not be done in time.

Herehopin.
You cant really have read the rns as the price paid cannot be calculated when they exercise the option, only a few days later.
Hopefully read this correctly and explain this right below
1. Base price - they choose the 3 worst days for us (best for them) out of 15. If they did this now it would probably be late 17s.
2. When they exercise, probably on an rns, they pay a further amount based on the price three days afterwards. As i read it it is 42.5% (why not state this rather than half of 85%). if this difference is 20p so around 37p (over a doubling of the share price) they pay 8.5p so say they pay c 26p with a 38p price.

From 5g perspective what they are hoping for is i) a volatile share price with just a few really down days in three weeks ii) a major rise in the 3 days they exercise (or even better a rise after the 3 day period). They also have a slight benefit from the 2m vs 2.06m.
Although they can influence the general market and in particular volitility they are not aware when an rns hits. Also important to realise after an rns they can wait to see the price movement before exercising as they are only using up a few days of the 15 days.
I hope they exercise after an rns that has little price impact (but as i say above they can wait to see what happens), and then we get a later transformational rns.
Whatever we could do with a general price rise without news, hopefully the director buy will move this to the mid 20s as a start.

I know I am in a minority here but as IR should be c 10-15% of MRs role, not 50% trying to answer a lot of questions many of which he cant answer anyway.

https://community.hpe.com/t5/Tech-Insights/Reimagine-the-Radio-Access-Network-with-HPE-RAN-Automation/ba-p/7164527#.YnZepe3MLIW

All server vendors now outlining their approach to the market, the above was shared by an ex colleague now at hpe on linkedin - there are a lot of links in this as well which are worth reading. Also look at Dell open ran strategy on their websites.
As usual trying to see if / where ENET fits in as there is a lot of similar language and strategy. Confirmation of one of hpe, dell, fujitsu, lenovo etc would take ENET to a different level - as with everything at the moment nothing built into the share price even at 0.1% probability.

MR has options over 209k shares - weirdly a mix at $0.20 and £0.20. Noticable these are long dated, so long rather than short term thinking and decision making to the fore. So at the moment worth very little, but with the potential to be valuable. Compared to a lot of nasdaq tech companies operating in Israeli where he could work, this is pretty light.

I think DL will have a long term plan in his mind of an exit c £15-20m (even with the negatives of dilution and the pluses of options), building a company to a value similar to what he has done before.

Vasc.
You forgot the provision for the aroc projects would be reversed, confirmed by the board and the buffoon ST, giving KMK a massive amount of cash. I think that was two years ago.

Impressed with the way management have executed on strategy here in the last 2-3 years.
Watched the investor meet, well structured and focussed.
So a company at a discount to its peers, outgrowing competition in the hottest IT sector (excluding ai) with the potential to be taken out.
Still surprised CNS is never mentioned in a list of cyber companies, or any write up in IC, tempus etc. At least wheelie dealer have it a shout out on twitter.
Have held for a while here with a decent size holding and will continue to do so.

Small top up today, just too cheap even with $2m of shares diluting existing holders at low prices.
Just need further price rises for the other 99% of my holding to be in the blue !

The key issues are
- Gives enet IMMEDIATE cash, what is this desperately (and with this it is desparate) needed for it they are pretty well funded ? MR did give a couple of possibilities, but these need to turn into rnss sharpish.
- On protection, it really gives protection at the very lowest price point. With the share price taken in the three week period where the price could double and an 18 month period to execute this is a poor deal. This is especially true if the buyer can drag the share price to a temporary low.
- And then afterwards we have the ####### overhang of them selling into the market for 6-12 months.
- This really does need to be the last 5g placing, need the share price at warrant level to stop this.

I think all those at the meeting felt it was a “sit on your hands” - no reason to buy until further news and an upward trend, no need to sell unless you’re distressed. I haven’t read the brokers note but this didn’t seem to contain anything news worthy that was not in the market.
Problem is the market has absorbed so many shares from 5G already including many PIs, further selling just hits the price.

Two related things I forgot to mention which I have been thinking about.

- DL stressed the stickiness of the product, difficult if not impossible to take out of an overall system once installed.
- Also stressed base price and layers of options for additional features and functionality. Hopefully the usual tech model on a lower margin base, with options priced in the contracts at very high margins.

May be part of the answer to the main conundrum (from my perspective) that came out of the meeting.

2/2
- Real focus on R&D. A few off the cuff remarks (paying very high salaries for real talent, why pay useless PR when that’s another engineer). David clearly believes the R&D investment is creating valuable IP with a high ROI, timing a little uncertain. Did state the industry standard 25% R&D indicating to me a medium term revenue expectation of c $25-30m or monthly $2-$2.5m run rate. Did get a good feeling they treated the companies money with the same care as their own.
- Investor comms. Recognised some issues on both wording on RNSs and what constitutes an RNS, stated they had followed expert advice which weren’t necessarily in line with their views. I did like the very direct statement from a couple of investors that their investment was directly in David and his management team.
- Funding. Very clear on who 5G are not and that they are very supportive, problem with this that if they are clearly taking more risk than envisaged this comes at a price. Explained why the need to have flexibility in share issuance.
- Did “like” David and Mark, straight talking, professional, didn’t duck any issues and took on board concerns and comments. Mark clearly a CFO rather than just a numbers man.
Overall still a lot of uncertainty on timing of revenues and cash required to support the company but clearly the company has developed a product set which they perceive is not valued / understood in the share market – but a recognition the ball is in their court to deliver to enable this. From myself the key issue /risk on deeply discounted dilution at low share prices just to current cash burn – need news to get the warrants at 60p rather than using 5g at less than 30/40p. Need regular positive news flow on new deals and execution progress on existing deals. Still very positive in the medium term but understand how the market currently sees ENET awaiting more signs of progress – hence the zero share volume interest from the brokers statement.

1/2
A day and a bit at work and time to think about the meeting in a little more detail.
- Tarana probably not quite as bigger cash cow as we all may have thought with a lower unit price than most have speculated and extrapolated, and g2 important for Tarana but not quite as important for follow on ENET revenue. Does provide a regular, increasing monthly high margin revenue and cash stream. David did state a price per unit after Mark was very general, so I wont repeat the number.
- A lot of discussion on the 1 to 1 relationship between ENET orders and tarana towers expansion. With a potential IPO think ENET have been told to be careful on communication here using FWA rather than Tarana by name, I do feel ENET should have been / need to be much clearer on Tarana and the potential to provide free cash whilst other products scale.
- Clear most contracts will have confidentiality clauses, might be difficult for us to see end user market, demand and potential.
- Cards close to chest on margins and initial / support revenue mix.
- After a query from quantas a clear focus on delivery on the contracts they have, and deals within the tight strategy rather than peripheral deals. Was interesting to hear their view on whether they are missing opportunities, sales routes to market etc.
- Contracts appear to have some flexibility and ability to adjust pricing on changes with input pricing, so margins maintained.
- DU opportunities still very open but to me seem to be taking longer than thought, with talk of “very large companies” which I hope are the likes of HPE, Dell, Lenovo etc which can provide real volume and scale.
- New products not from explicit customer demand / discussion, more from their expectation of where the market is heading. But clear ownership of IP and non exclusivity in contracts.

It may be under nda so we don't know who the customer is but can speculate as I am sure the favourable sweetener ingredients would be part of the marketing - possibly two products side by side one with sb the other not??, but opti will have to communicate that they have a deal.
Unsure of relevant food standard disclosures around the world, doubt a trademarked sweetbio would be listed but more the sub level ingredients. Not anywhere near and expert in this field so comment welcomed.

Uhlf
That was me summissing to myself a bit. They mentioned they were meeting other investors (assume miton).
There is a need to get new institutional and pis (with wallets of various sizes) in. If I were new I’d wait on the sidelines until further news reinforcing the business model, which I hope q3/4. Think mark and David were burnt a bit last year, now ultra cautious.
It was good that they arranged and presented to a set of shareholders who are probably mostly underwater, much easier to hide away in Israel.

Apart from quantas and dallo didn't really have much chance to say hello, I was the tall bloke sitting next to dallo. Amazing to see people flying in or on the train for hours. Clear from the questions everyone long term holders not looking for a quick turn but deeply interested in where the company was and where it was going.
Hopefully we now have each other's names and emails from the sheet of paper.

Overall the meeting did what I expected it to, reinforced views and enabled me to hear directly from David and Mark. Of course would like more % and £ details but knew clearly not the forum, and Mark very professional in terms of what was said.
Clear focus on contract and r&d delivery, but clearly a few irons in the fire across the portfolio to get us with a good range of high market, replicable and repeatable deals in a short time period.
Hopefully they met a few institutional shareholders, not necessarily for now but primed with open wallets after news Confirming want they have heard sometime q3/4.

Great results.
Perversely I think corero would be valued more highly if the bottom line were worse, if perpetual licence orders were replaced by saas/ pass.
Interesting geographic mix with emea falling, one large perpetual order last year?, with Americas dominating. I can see the reason for a us based cro.
Juniper still performing and must be happy with the strategic relationship.
Unfortunately cannot make the investor meet due to work commitments but will check the recording.

Constantly amazed that this board is so quiet, advfn is dead. A lot of much smaller companies, badly or well run, have a 10-20x following.
Great performance already flagged, just details in the actuals - real issues are expectations for 22 and the possibility of a div / buyback if they cannot usefully utilise cash.
Very few similar companies on aim are profitable and throwing off cash, and have a leading nasdaq tech company as a key shareholder and partner. Have held through some pretty rough times here, pleased to see great execution.
As usual with aim, a write up in IC / tempus / questor / midas etc will have people jumping on without having done any due diligence or research, but is welcomed non the less.

I'm attending.
Just changed roles into one where I need to manage my p and qs a bit so will introduce myself at the time - I am very easy to spot though, BID knows who I am.
It would be nice to have holders adding to c 12-15%+ of the market cap which is achievable between about 10 investors.
As yourself view this very positively, I really hope a brokers note In the morning (their underlying reason for the visit?) So that they can talk more candidly around information in the public domain.