Member Info for skid35

If you disconnect the company and management performance from share price expectation / valuation.

I dont believe the share movement really reflects this contract.

1. We know there is no further development cost, the software is clearly fully tested - little risk (US govn approval) and 100% margin and cash. From a short term share price perspective this contract is more valuable than a UEP2025 one.

2. A NEW customer, which is really difficult with ENETs finances and track record. Especially when compared to the very misunderstood contracts in TSP which caused the spike.

With illogical traders and followers entry and exit points are hard, with the rise before the contract I feel someone in ENET might have been a little indiscrete.

A Tarana order providing a view on monthly run rate is needed to settle the nerves and set a trading point c 1p plus.

His salary was reduced as he was also paid by probiotic, so this isn’t correct as it was a one off.

Opti is far from an average aim company, probably in the bottom 10 % by revenue.

Lwhl.

Well said. Deeply unimpressed with SOH strategic and operational leadership in the last few years, as you say while taking home a pretty penny and thinking he has done a great job.

Daughter home this weekend, she is going to the "nudgestock" conference on friday. Just reading through their website on speakers..As I've said previously SOH and OPTI really do look prehistoric.

Can imagine a sunburnt tattoed jimbob being interviewed outside Wetherspoons in Clacton in a vest talking politics,same vibe

Jimbob.

Your posts are just what I would expect of a late developing 15 year old.

Why don't you provide counter arguments based on even a modicum of knowledge and understanding, oh yeah forgot.....

ETH.

They have a major cash hole in Q3 which this doesn't cover.

They need to use cash raise for immediate turnaround of funds plus profit, the only answer is a stinking tarana order with immediate delivery rather than monthly drip.

Bobcat, being precise ENET reports everything in USD, all contracts are USD - the contract size is less important considering how this fits with the business model, enet monthly outgoings etc. The key factors here are the positives on the margin and this contract was not the one most foresaw, negatives are it seems backdated in the year and seems to be a perpetual licence for use, rather than quantity. ENET need the "cash margin" of a tarana deal for Q3 impact - the reason for the working capital cash raise.

Mikey,

- ENET have a signed contract, but it is conditional as all contracts are. As such they have to release this information to the market.

- ENET needed this from a timing perspective to stop a bergen rout below 1p.

- This contract is much firmer in value and execution risk than one for UEP2025

- I think US Govn approval appears to be a rubber stamp, these approvals take time and they would have a very strong indication there are no show stoppers

Trickey,

You really don't understand nuance and detail.

First thoughts.

- Surprised this was the, or one of the, contracts rather than something else so very welcome - also zero / little chnace of an ENET FU and customer cancellation, underforecast development costs etc. Margins exceptionally high so dont believe this needs the working capital.

- Lack of detail on the deal, whether it is run rate or licence terms (perpetual, support revenue, pre pay).

- Delivery H2 is a wide time horizon - need cash as soon as possible as I still think they are in a cash hole.

- Tarana deal needed for quick cash turnaround.

- Again all revenue from "old products" rather than post IPO where R&D has been pumped in.

- Overall very welcome to take the share price up / dilution down before bergen start selling.

Gordon.

No 100% it is not NASA or Space X. Firstly they dont really make anything but use subcontractors, secondly we know who this is anyway and it is aero rather than space as this has been leaked.

Tarana clearly have to reorder, its the monthly run rate investors can see from it that is important and how this supports Enet monthly spend.

Outside tarana, flip a coin as DL and ENET history has been poor on understanding customer behaviour.

My daughter works in marketing for Nectar, as a finance bod really interesting talking to her about modern, digital, focused fmcg business development, branding and marketing.

Unfortunately SOH and opti look like complete dinosaurs.

Al4x.

Been in a while and now my largest holding at a decent level of gain now.

Well run, great secular growth, great go to market and partner strategy, cash in the bank so no out of the blue cash raises. Will be interesting to see how HPE play their holding from the Juniper takeover, and whether this is sold to Akemai as it fits in with their strategy and is peanuts.

They desperately need to get the share price up before the 1p period ends shortly, otherwise their 1.5p options are much harder to exercise due to both dilution and bergen selling at a few % points and manipulating the share price to its own ends.

They have had the £800k sometime 100% to be used for working capital, still waiting to understand how / when this is used rather than cover the payroll / DLs expenses / debt repayment.

Contract news, whether it is understood or not by the "market", should have this going higher 1p + simply on relief. A few individuals making money here, but risky with the spread.

Jam - see note below. At 60p Tarana was meant to be an immaterial side line. Until mid last year Miton had backed every single cash raise increasing their stake, realising late last year DL and sidekick MR really didnt know what they were doing and selling out.

Mornington.

At 60p ENET had reconfirmed to private and the key institutional investor Miton i) they were all systems go with 10k a year Indian deal (reckon $1k a pop at 50% margin ii) chinese deals meant ENET were "at the finish line" providing ongoing high margin $5-$10m a year iii) they were fully cashed up and expected to be cash flow positive iv) the share count was probably 15% of where it is now. We now know all of this was complete and utter lies.

Good news on the rise is the 45 day price period bergen has when the 1p gets repriced. Sincerely hope they have something cooking to reduce dilution, and that the 1.5p options price was set with news in mind. With DLs who knows.

Jpj.

It's really hard to tell as we don't understand forward invoicing from the year end, I would have hoped they would have converted a large amount of debts.

Although debtor days is a blunt measure these look too high at year end.

Hope that they have taken a decision for medium term growth vs short term profit. I think they underestimated localisation in the U.S. But hopefully they can get partners moving.

Interesting to see Swann hasn't taken anymore, but seeing what he got into in chill not surprised. New investor seems to be most of their cash.

Proph.

Yes - they have been as Wispa, other events for year and year and got precisely zero business from it. DL considers pipeline as someone giving him a business card (as I now know when he said they were working with Cisco and Juniper)

No, they dont "advertise". Business is face to face with decision makers.

Faith in the BOD as individuals has to be based on at least some firm ground. When the CEO has deliberately lied face to face with private investors, when a private investor has to take over and the AGM as the Chair hasnt a clue, when they have failed to achieve 50% of every forecast....

I have heard inside remarks about just how dysfunctional and inept the BOD and leadership team run the company.

Proph,

Not sure what you're spelling out with such a limited knowledge of how ENET develop a pipeline and contract (or not in their case).

You do know ENET dont take a card reader to these events like the local farmers market ?

Prophetus,

Having been to a lot of these tech conferences really unsure why you are impressed here - with both the message and delivery.