The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Tricky,
If you've been here for a long time you would know that DL simply hasn't followed through on executing on what he calls "no brainer", "world class" products. Unfortunately the market for products simply doesn't share his view.
I remember DL stating to a group of PI " we know more than anyone in the world about telecoms" which he then repeated for emphasis - possibly the most stupid ever comment. Having worked with many world leading tech companies I have never heard such arrogance from a CEO (even those who are world leading). DL is arrogant and deluded, unfortunately with a chair who nods his head.
Decent CEOs I have found are slightly paranoid behind the bluster, always questioning what they can improve, what the competition are doing, focus on nps - in the face to face s with DL / MR I didn't get the impression of a decent leadership team.
Tricky - a great deal of misunderstanding in the way you have posted here.
Compatability is around protocols, not usage and there is suddenly not an fpga on the market which opens the market.
Intel, xilinx ext are already produced AI badged fpgas but a not a great deal different and everyone has access to these they are not ENE T unique. What you have interpreted as compatability from DLs ramblings is the benefit of an fpga vs asics, the main benefit of AI to network providers is the sheer increase in data volume which will need a reassessment of how the network can be used more efficiently without the same multiple of kit, energy usage etc.
From ENETs perspective they haven't got a toe hold in the market with their uep platforms (which they have been trying to sell for y ears) so why will AI change this ? Their solutions need to be far better than solutions from financially stable, well run companies for them to overcome a buyers risk premium using ENET.
As I've said previously a very unique rsu deal based on the circumstances enet is in especially as 1. it involves non employees 2. Quarterly exercise 3. three years.
The saving grace is the 1.5p which means they can't just keep driving the price lower with share issuance at a discount, however each quarter of they don't hit 1.5p it is rolled forward rather than most.
The chair should hold his head in shame taking these from shareholders.
As I said before it is more of a staff retention scheme than performance incentive scheme, and stops cash drain.
For newer posters you always think DL must have something round the corner, only to see an rns which is giving more shares out, contracts folding etc. The Chinese contracts being on a firm footing would take this to 2p.
Hull.
There is nothing DL can do to stop the "drift" apart from positive business news rather than spin, but there hasn't been any.
At the start of the year zero backlog, now near the end of the quarter and no new orders just cash heading out the door.
Learning, I couldn't make the agm but was in conversation with those on the call, just incredible he is still chair not understanding the very basics of the Bergen deal and not knowing how to run the meeting.
Remember this is the person holding DL and the leadership team to account, appointing bookeepers as cfos etc.
Coco.
The response to the two "contract" rnss was completely irrational, it was used by Miton and all the other long term holders I know to get out.
The two rnss were in part protection mechanisms from these two customers ensuring they had their contracts aligned to their use of ENETs IP should the worst happen.
Jolly - a little surprised this moved on this mornings rns. The non exec director putting in £100's k, the akamai deal 10 times more worthy to shift the price.
Still massively under the radar hence the lack of postings here, undervalued compared to US SaaS and appears to be very well run operationally and strategically.
US private equity a different ball game to AIM, so Tarana financially stable and can play the long game as PE holding onto companies for longer without looking for an IPO or trade exit.
Unless you have the forward projections valuation is a finger in the air, valuation is what someone will want to pay.
ENETs contract with Tarana, current stock levels etc are also unknown, the best short term contract will be an s/w update of their current base immediate 100% margin revenue and cash. They must have contracted for this but not executed orders against this contract.
Its hard to get any real understanding of forward revenue of ENET this year. I think DL has learnt from being far too optimistic (I would say deluded) in past forecasts by 2/3x and has no need to put his head on the line with a further forecast.
Anyone who thinks they have a view on revenue simply doesn't understand ENET - as such it is high risk / high reward could be 0.5p could be 5p at the end of Q2.
Its a slice of their cost of sales not their market cap.
A 10-20 revenue multiple is about right in the US.
In the UK its a fraction of that for a Tarana type company. A comparison between Tarana and ENET is stupid anyway - in addition for ENET we have the risk premium the UK rightly puts on Israeli companies and the further risk premium of ENET being really, really poorly commercially and financially managed every year since IPO.
Mickey - you're the Boris Johnson of investing - all waffle and no substance.
For the nth time in absolute $$$$.
- What will the tarana revenue be in 2024 ?
- What are the other announcements with $$ against them ?
- What have you assumed as the 2024 breakeven revenue ?
Finger,
Yes it is really, really difficult and time to develop business if you are small (and have ENETs balance sheet, which its why its about finding the small niches which the big boys arent interested in, but will hopefully develop to ENETs tarana like business. But the "industry" with OEMs is quite small, DL will have contacts in every major networking company but they may not be at the right level or have product authority.
Really interesting reading my historic notes from last years PI meeting, virtually all the leads DL was hinting at seemed to have turned to dust including the chinese deals he had "contracted" - this included the "advanced discussions with 4 OEMs on UEP2025" and volume manufacturing mentioned in RNSs and updates which were meant to happen Q1 23. Advanced discussions from my days of managing tech pipelines clearly massively different from DLs.
A word of warning on Tarana on the deal mid last year. I think Tarana knew of ENETs forthcoming issues with the chinese deals and the $1.5m was to secure units into this year, from last years notes the tarana run rate for 2023 was forecast at $1.5m in total. Havent a clue when they will burn through this.
ENET marketing focus should be on about 100 key decision makers world wide, non of these are end users.
They should be at these events behind the scenes building relationships and thought leadership with this select group.
ENET isn’t and shouldn’t do Tarana marketing that just not how it works. ENET should have zero, absolute zero, involvement with end user marketing.
Non exec background should be on 100% sales.
Finance, governance for a company this size irrelevant and for enet with its poor history, investor relations only important if you can bring a few hnw individuals in but not general investor relations.
Nice week on OPTI, wish a few of my other AIM stocks would do the same.
Held on through the s*** days on the hope that the portfolio of different deals would start to motor -an with a royalty model the scaling of revenue to the bottom line is incredible past breakeven on fixed costs.
Will be watching the Strade Bianche at the weekend, the most beautiful cycle race partly on the compacted chalk "white roads" in tuscany finishing in the sqaure in Sienna - the DSM Firmenich team will be riding !
Digicomm is a distributor rather than a value added reseller / channel partner, and selling to resellers / partners rather than direct to end users. They work off very slim margins / high volume and do not really develop the business.
What it hopefully does show is that Tarana doesnt want the hassle of distribution (warehousing, logistics etc) with a large ramp in business - much better to outsource and focus on core activities.