Member Info for skid35

Probably the larger cost is the monthly retainer for Harbor Access - they've done such a great job in reaching out to the UHNWI in the US.

Good to see some realism in taking out costs, slightly different but interesting to see both instem and pelatro critical of the high cost of an AIM listing this week.

As with the "easily met" and other pronouncements - I do wonder what the news stream was that they thought was coming to make a US otc listing would be successful, or badly advised by their nomads / broker?

I have commented before on the Chair and non execs being completely out of their depth - I have emailed him as such as well.

So either the Bergen deals were agreed at board level and he didn't understand and just nodded along like dutiful spaniel, or they weren't even approved at board level.

I remember going into the bar at a very nice hotel in Moscow about 10 years ago and a rather delightful young lady sitting at the bar smiled at me. A bit similar when there is any enquiry by a customer, In this situation D L would have thought "I've still got it".

An AGM isn't private communication, it's an open forum

Viera, not so much the number of shares in issue but

1. the low cap vs the potential opportunity of high margin recurring revenue

2. Shares held relatively tightly but long term holders

Am

Depends on any potential deal, and how investors can see the follow through over a 2-3 year period

A couple of sentences from Jan 17th 2023

A lot of hot air in the last year ("exponential", "at the finish line", "great positive things", "Indian contract in place" etc), now clearly backed by little evidence. Another deeply, deeply disappointing trading update continuing the history of deeply, deeply disappointing trading updates. Yet again the board of directors and senior leadership team have completely failed to hit even vastly reduced six month commitment reforecast three short months ago by 20%. However you look at it, lets not beat about the bush, another appalling six months business performance.

As a private shareholder the leadership teams basic grasp of and delivery against strategic, commercial and operational issues appears poor at best if not non existent - from the commitments made you are either not understanding, assessing and mitigating business risk or more worrying just plain complacent believing your own hype.

If I just take one point from my initial note below "there appears to be a failing in understanding these influences to develop conservatively weighted forecast and then mitigate inherent risk with a clear action plan in both P&L and balance sheet". From repeated failure to achieve revenue forecasts it is clear there are systematic failures of really basic pipeline / contract forecast management.

Every other question remains in place. No surprise the result is, as forecast, a deeply discounted placing and dilution, with Bergen still to dilute even further with an even lower price from the c 10p when the original communication was written.

Part 2

Against this background we do need:

- - A further immediate update from the company. This should reiterate the revenue guidance from the interim update. After the revenue warning, I would have hoped that the guidance was sufficiently weighted on the conservative side that there is a very high probability that it will be achieved especially with the strong start to H2 in July and August.

- - I know stating the completely bleeding obvious but we do need RNSs with $$$ and clear timescales associated with them.

o Hopefully ENET should have FWA order for 2023 which should continue to provide a relatively predictable quarterly beat of margin and cash.

o With the existing very concentrated customer base we do need updates on progress on other existing contracts where predicted revenues have not materialised, this includes the Indian OEM where David reiterating this was still in place including volume expectations at the London meeting.

o New business wins from the now wide product range addressing multiple pain points in the market where advanced discussions seem to have been going on for considerable periods of time.

- - It would send a clear signal to existing shareholders and the market if the board would buy a material amount of shares in the open market, clearly under the stock exchange rules on dealing. From the annual report I can see you all earn very decent base salaries, if you believe in the companys prospects and the undervaluation material buys would be welcome.

The cash position is uncertain, but obviously a clear issue with a crunch sometime in H1 23. With 5G still waiting to execute the vast majority of their $2m the options for future cash funding appear very restricted. No other corporate funder willing to risk cash with 5G able to move the share price at a whim, leaving 5G able to dictate terms to the detriment of existing holders. Any cash call outside this will need to be massively discounted, and with a market cap of £7m will dilute existing holders to nothing.

From the above it is absolutely imperative we have news in the short term to take ENET out of the vicious cycle of zero news, poor execution, share price weakness, 5G overhang and control. We also need a regular monthly news flow of new deals across the product range across multiple customers / geographies, and execution in 23 rather than the void we have seen in 22. In the medium term the death spiral funding of 5G needs to stop, with high margin revenue streams and tight cash management supporting the business with funding only from a position of business and share price strength.

I sincerely hope we have material news to take the ENET share price to a minimum of 20p before the end of 2022 so that any new cash is not as dilutive. I remain extremely concerned that my investment in ENET may be diluted to a minimal value without material news stabilising the companys outlook in the November / December window. .

Cannot make the board meeting, but interesting what I had written in the past to the CFO/CEO/Chair.

From 12 Nov 22. Part 1

Mark, David, Yosi.

I hope this email finds you well, and hopefully in a positive frame of mind based on what you are aware of but cannot share as yet with shareholders.

Unfortunately yet another week, month with no news - with the share price below 10p and a market capitalisation of £7m. I really didn't think we would be at these levels again.

Although the share prices of companies at the more “speculative” end of the spectrum have been hard in the current downturn, ENET has reduced even further from these levels. From publicly available information and ENET specific uncertainty in the market, the ENET valuation is unfortunately where it should be irrespective of where the board believes it should be - the "market" cannot be blamed for this level of market capitalisation.

With no news there is zero level of interest from existing and potential shareholder in the company and minimal share volume, 5G continue to be in complete and total control of the company. They are able to sell very minimal volumes, even at a slight loss, to drive the price lower and set themselves a low buy price for the next three weeks to give them even more control. Even after exercise they will control the share price with a steady drip on any strength in the share price.

We have had RNS updates and the London meeting where progress and future business volumes have been alluded to, but in the current year we have had just one RNS with a contract order, slightly offset by another RNS cancelling a prior order. For a growth company where the board forecast “exponential growth” this performance is simply unacceptable from a shareholder perspective.

From an external investor perspective, progress we can see from the London meeting has been pretty much non-existent. Discussions, trials and “progress” in updates simply don’t cut it anymore and are now completely discounted and of zero value in the market as, from past performance, they don’t lead to material contracts in the near timescale. The repeated revenue and profit warnings have also created an environment where the credibility of the board and its ability to forecast is called into question. All investors recognise the extraordinary times and uncertainty in recent years including those directly due to component shortages, but there appears to be a failing in understanding these influences to develop conservatively weighted forecast and then mitigate inherent risk with a clear action plan in both P&L and balance sheet.

Where I hoped additional funds would be used for working capital requirements for contracts alluded to, it is clear funds have just been used primarily to support the P&L, in particular R&D where the ROI seems uncertain in both $$$ and timescale. This leaves the balance sheet completely threadbare at the end of 2022, yet again unable to suppor

Aberdeen doing the same thing, tidying up smaller capitalised trusts.

Invested here recently due to discount and yield. I'm also an investor in GABI which, even with the discount rate adjustments, has had issues on underlying assets and now sits at an even bigger discount / yield.

Nice gradual rise, even on these summer days with little volume.

Outside the base business, news on the first PFA order outside a trial should hopefully see a rerate. Nearly back to breakeven but this is a longer term hold rather than a trade.

Dallo,

As you are aware any communication I have is with the Chair rather than DL, who is clearly too far close to his baby and doesn't look at risks and opportunities objectively and rationally - and therefore doesn't mitigate or action.

Having said that the Chair has done a very poor job on behalf of shareholders, only seemingly stepping in when there was a few quid left on the coffers and all bridges burnt to raise additional funds.

Still far too many open questions, hopefully you can glean more info at the AGM on i) the really basic stability of the company this year ii) how realistically they can move forward with limited working capital and a reticence of customers to contract with a company whose existence is uncertain.

Joe. When a few short months ago the CFO stated the 15p warrant price would be easily met, as if there was Certain newsflow behind it, he really should be in front of a professional disciplinary panel of the SA chartered accounting institute and have his letters removed.

TW is just a con man, pure and simple.

Also, why no H1 revenue update. You would have thought they could have provided a "bit of spin" with revenues for H1 combined with the $1.5m for tarana...

"the extended sales cycles being experienced by the Company"

Sales cycles are always extended, thats how it is in tech.

The ability of the management team to really understand and dig deep into the opportunity pipeline for weighting, timing, $ value risk and opportunity in order to focus resource is pitiful - it doesnt help having a chairman and board who simply have not provided the very basics of oversight and governance.

$1.5m on Tarana as expected but welcome, key is whether this is Tarana stocking up so no more revenue Q4 as this seems to be the only reliable business and where shareholders are able to have check from independent sources rather than any reliance on ENET management. RNS title deliberately wrong, if you read this on its own you would assume a new order.

Silence on cash resources.

Just realised we are having the usual twice yearly ST bounce as IC hits the doormats.

Let’s hope even a stopped clock is right twice a day.

First small purchase when markets open monday.

This year my monthly investments have been defensive divi payers, earlier invested in sequoia to get a few regular quarterly divs in on a !monthly basis.

My only concern has been is that I am a small holder in GABI wh ere some concerns on the underlying assets. This on e seems more secure especially at this level.

Strat.

1. Nice end to the week. I have always called lows to myself at 15, 10 etc but hopefully with the overall AIM market stabilising and no more serious missteps hopefully this will continue.

2. Need the detailed annual reports but appears some good signs, negatives still of ridiculous stock levels and continued write offs as a % of cost of sales as well as non tangible assets.

3. Analysts at this level are really just fed by the company, but do therefore provide the thoughts of management.

4. Was always going to take some time for the new chair (as well as a cfo who can count) to get the governance and strategy right, hopefully we'll see the fruits in the coming years.

5. I have always said KMK has incredible options, but let down by operational weakness and very serious governance issues.the

For lths, hopefully we can get back to our averages, recent holders you may have bought in at the right levels.

Notsofast.

From my posts its not talking down the stock, its facts based on prior management commitment and execution countering the blind faith of some.

A brief look, some positives some negatives.

Major issue still seems to be working capital management with continued write downs of debtors and stock year after year, why don't customer want to pay according to contract terms ? Stock increased now to 26 months.

Theinvestcollect.

Also remember the probiotix share "dividend" has only provided about 4/5p of the 95p.

There really does need to be execution of strategy by SOH and the team now.

Haven't a clue on the recent movements, whether it's just stupid people jumping on it following a trend.

Don't trust the buffoon TW and his very dodgy musings.