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- I now have my answer on the key issue of cash which is disappointing especially as it is effectively for general opex, it does seem a lack of realistic testing of underlying assumptions in financial planning by the bod.
- Clearly someone in the market knew this was coming.
- If 5g are a tarana related party, what's the bet they know this is a one way bet at this distressed price with new orders coming. The better terms therefore arent really that important here but a no loose position for 5g.
ENET really need to start issuing orders RNSs shortly, one in 4/5 months simply doesn't cut it.

James.
Really not sure why you have written the second one, taken as a given in any company. I am sure first of DLs list is to get a portfolio of contracts at differing $ levels across geographies, products, stages of development etc.
On the first this will not happen for a vast multitude of reasons. You dont raise money from shareholders to buy back shares in a growth business, they need shareholder authority which they will not get, it is a sign of failure in their business model etc. Growth IT companies in the US do not do it as they reinvest cash for a greater return, mature companies (apple, dell, oracle etc) do for tax purposes (dividends vs capital gains, repatriation etc) and to keep the share count stable due to large share options to staff.

Two different things.
Update on 21 should be due nowish (18 feb) last year which is unaudited and incomplete, but has top level numbers for a good view of performance.
Full audited report due mid year, complete all signing audited annual report with all the detailed notes.

Uhlf, yes it was a contract / product update not an overall company update.
As I have said before I do have some sympathy for ENET here as it must be a pain in the backside to forecast with the range of potential outcomes I expect they have, much probably outside their direct control.
Even with this in the background I have made my points, amongst other things, around standardised consistency, content and timing of comms.

James.
With the small volume any shake out is always going to hit the share price hard, I think anyone selling at the moment isn't taking a pragmatic, rational view here and is just in a state of panic.
I think the RNS was more about availability and price of components, and how this has changed in a couple of months, rather than cash - although I expect margins may have taken a hit from the expectations at contract signing. As it was a little clumsy a little hard to tell.
100% agree with you though on the need to understand cash and working capital, difficult to work through from the 3.5m virtually 9 months ago to now with fund raising, opex increasing, working capital of debtors and stock, understanding margins etc.
But i dont think ENET should be priced at the current firesale level due to going concern issues which i believe are miniscule, at most a couple of % points in a weighting of a very, very wide range of probabilities.

Quant. This can easily get to the warrant price in the time window. Just need 2-3 pieces of contract news to confirm the “exponential” statement, however even though it’s an aim stock it does appear to be completely disconnected from the standard aim market norms - possibly as its Israeli or just IR?
Just a crazy, crazy valuation on the company at the moment even with what we do know.

James.
Well said. This is why it is important to understand the working capital implications of the various go to market models, the mix in their portfolio and how it changes over time. Hoping tarana can be a cash cow as well as strategic asset this and next year.
On 3) I think we have to see the route to warrants exercise. Remain very hopeful that the pricing and time on these indicated they knew how business would play out to support this when issued.

I think a lot of over thinking here. With this market cap and small volume everything is exaggerated up and down. A lot of micro caps in the same boat.
A couple of weeks to forget where nothing has really changed, apart from the key absence of rns with firm $$ contracts. We do really need to start this trickle soon.
A little concerned on the DU server as surely there must be something in the pipe which needs contract backing, worried that vmware are part of the mix as they are leaders in making minimal use of hardware through clever software - anyone with a more technical bent can add / shoot me down.

It's not just their stakes in ENET that are informative. Read the accounts, low base salaries well below market, bonus only when they are profitable and ENET owes them money from prior year's salaries.
I must say I have also been surprised no one has taken a small stake here, after all it would not even register as small change for a West coast VC or nasdaq listed company - all of who monitor Israeli companies. I actually see this as a worry - what can the 10-15 or so supporters here can see that thousands of highly paid VC guys cant?
However I've seen companies I have worked for buy complete dogs for hundreds of millions with a tenth of the opportunity ENET has. I remember HP buying autonomy and everyone saying WTF, which proved correct.
I don't think xilinx would take a stake as they would like to appear agnostic across their customer base even of it makes financial sense.
I do still find it strange we do not definitively know who 5G are.

Apropos.
"Give it some air" ?
The balls been in the air 4 years plus and counting. Despite long term holders trying to tell the long term story there is a rotation of short term holders ignoring the past, getting their fingers burnt claiming to have found the next big thing only to be disappointed.

Looks like Tracy has thrown his toys out of the boat on the darkside. Inevitable really.

Must remember ENET is still a s##tty little AIM company with a narrow shareholder base. No new contributors here or the dark side for 6 months, the 10-20 key private holders must be maxed out and dangerously overweight.
Also remember we are now at the 5 month anniversary from a contract RNS, I was expecting 2-3 per quarter this year to build a wider portfolio of say 10 key contracts all with decent yearly run rates.
However still consider this the best risk reward on the market, even more so with a share cap of £20m. BUT enet need to show a route to warrant exercise in the next 6 months with 2-3 key pieces of news in quick succession.

As usual, better commentary than you will find in ic or daily mail.
One point I would question is "each division is profitable". You really have to understand accounting methodology and allocations in detail, especially with a high proportion of hq costs.

Belgrano.
I think this is a generational thing, I can't pretend to understand the pschological aspects here as most influencer seem the most vacuous individuals, but this is now a vital part of the marketing mix.

Oos.
At their current size this will continue whatever the news, unless a buyer comes in wanting a chunk (this may be even a single buyer).
Medium - long term they need to persuade the market they can acquire, and then grow, 5-10 acuitys - at the moment they simply haven't outlined the timeline for this.
Remember this is even below even micro cap level, at this level just won't get much traction.

...or adding.

I also asked for this after a results update in my MR email.
Have been on a few (CNS, OPTI) and they are really useful having the ceo "talk around" the business and direction rather than hard $. You get a lot of confidence from these.

Someone's building a nice little holding here.

Uhlf.
Agree, badly worded.
Clearly written by a geeky tech type, nomad and broker should advise here to shape these to the investment community.
I know others follow calnex. Despite technical products their total IR package is first class, from rnss, ppt presentations, annual report etc.

Uhlf.
The way I read it was with the price and availability of components problematic they re engineered their solution to be more cost effective asked on available components. They seem to have resolved this and are now moving back to the original solution, not stated but they may have taken a margin hit on doing so.
On a bid call and one of our customers, a multi bn aero engineering company with first class sourcing and purchasing, has put back by 6 months a deal due to shortages. Issues come up and at the moment are changing on a weekly basis.
As gh I think you are being a little harsh here, but don't disagree on the crispness and clarity point.