Member Info for skid35

Some boring facts on an opti partner.

Team DSM-firminech starts the tour de France today, with the women's team in the giro donne. They have renamed the team and changed the Jersey from the straight DSM for some reason.

The men's teams have a couple of young brits (max Poole and Oscar onley) who look future stars, but considered too young for the tdf this year.

After a miserable few yearsfor holders hopefully some glimpses of transformative news.

Not a city boy so don't understand some market manoeuvring s.

Is this one buyer, if so why don't they buy the same volume in fewer orders ?

ETH, as a long term holder the thought process is 100% built on history.

Hopefully the beginning of end when we can see the back of bergen, get the warrants issued, revenue / margin which is self perpetuating from a working capital perspective. We then have stability on cash / dilution which has been, I believe, most of the drag on the share price.

Still really don't get the value and delivery profile of the deal, Tarana just gearing up for what they know is coming down the line and are happy to have a quarters plus of stock ? does this fulfill their q4 as well ?

A bit excited, cant be G2 due to product timings- that is one hell of an order value for a quarter ????

A very, very welcome RNS.

1. Balance of prior Tarana fully PO used in H1 23, so understand H1 revenue here.

2. Quick turnaround of cash in Q3, working capital requirements (creditors, stock, debtors) within existing resources

3. This is a massive order as a year run rate for Tarana especially as seemingly for G1 (or is it G2 at a higher price or mix?), tarana stocking up ? have they got a major order (India, recent J Biden announcement etc)

4. Seemingly further opportunity for q4 orders and income

5. Tarana would have done their due diligence and gained assurances we shareholders would not have seen

However another low price for Bergen to use from earlier in the week, and volume to pass through to the market, hope for further news to sweep them out as and get the warrants. Have just been like Bozo, a t**d that wont quite flush.

Under these circumstances expect an AR report tomorrow as this may have been what they were waiting on.

I know there isn't a functioning market in a company the size of ENET, especially with Bergen lurking in the background and a handful of PIs, but I do wonder what is "priced in" on ENET with the complete lack of information we have from the company.

If audited numbers are materially different to that in the trading update they must issue an RNS, the issue was the trading update only contained a revenue number (rather than any other areas on P&L/BS).

I always feel a lot of AIM companies do themselves no favours by not communicating an investor timetable for trading updates and reports to set investor expectations.

Really not a fan of MS-W, but if you tune in after the self adoration session half way through Gervais Williams in the second half gives his view on UK micro caps. Interesting listen, particularly on CYAN giving a little insight into why they still support ENET.

As a micro cap is now considered about £ 100m not sure ENET fits into that category !

They will always be working on contracts to build ARR.

Most are not to be RNSed (either due to value or strategic importance) and just get added to the ARR pot for trading updates.

Another key week.

From the A R

- Cash and other working capital (debtors and reduced debtor days, stock and forward stock impact)

- Trend on r&d costs, good news that the cost currency has weakened this year

- Margin understanding

Not sure a forward looking trading update will do much as the market has now completely discounted "advanced discussions" and such like. A firm view on H1 including cash would be welcome.

They simply have to start filling orders backlog with new deals very shortly.

From a shareholder perspective there is a need to expand the base past 20 or so PIs, all of whom are pretty p###ed off with poor execution and understanding of customers, and being at the whim of bergen.

Agreed.

If they rns a deal there is no market confidence that SOH will be able to optimise and grow a new line of income. Unfortunately he and the wider board have zero, absolutely zero, credibility to execute.

Epson.

Absolutely.

As a techie and not a salesperson really has not read or understood the signs from specific customers or the market as a whole to enable a focus on deliverable pipeline - both in $ and timing.

This appears to have led to r&d and capital deployment lacking meaningful, or in some cases any, return.

Still hoping for a RNS where we can see visibility of a high margin volume income streams which enables a substantial proportion of fixed costs to be covered.

Tracy/504 ? All the rounded business knowledge of a two year old selling sweets in a nursery.

Intel already have a very sizable presence in Israel, human resources for a plant are very different from development. Intel are top quartile payers and used to have great share option schemes etc back in the day, but their share price has lagged recently.

ENET already competes for talent in the significant Israeli tech sector, much of it spun out of the Israeli military machine on cyber and surveillance. One positive it does reinforce the fact that Israel is a centre for tech excellence vs India / china, and unfortunately the UK.

DA, absolutely.

I think the current price does represent market pricing in the worst, including why we haven't seen the AR.

I can see the catalysts to take this higher and as you say this should be rapid and a 2-4 x where we are, as always and stating the obvious we just need to see them!.

The cash from warrants should hopefully moves cash out as a reason to worry about the share price, and the rise becomes self fulfilling (bergen excluded!).

I do look with trepidation rather than hope in the morning to see whether we have an RNS. As ENET has repeatedly told us I hope they will only provide good news going forward.

Great interview - focus and no BS.

Apart from Miton, who are not specialist tech investors, there seems to be zero interest.

If you look at the large US listed tech stocks they are constantly acquiring small companies to fill Gaps. Many of these are where they start as potential customers and just think sod it might as well own outright. I have been in companies buying some absolute rubbish for hundreds of millions. Outside of this they all have 'venture ' funds taking small stakes, ENET wouldn't even register as a thousandth if a decimal point at the moment.

Outside of this both US and Israeli private equity with money burning holes in their pockets, at least they're getting interest on it now.

With ENET, the management team are ENET.

DA,

As you say licence agreements without the working capital headaches of stock would be a nice gift for us long standing holders and strategically correct like the ARM model.

Cash (and income recognition depending on the contract wording) can either be an upfront volume prepay (with or without recovery through underuse) or through quarterly reporting. First step is of course any contract giving us visibility of the potential of a deal with an RNS.

Aquae / MOL.

Many thanks for the updates. This is what these boards should be used for with PIs sharing their own research.

Still feel 75% the issue is really around marketing and branding, where I dont think the management team have the expertise in modern techniques.

JT.

Having worked in finance and sales operations in enterprise software sales cycles are lengthy and always underestimated by sales, I think even more so if the tech is embedded within a OEM who have to be certain with a reputation to protect.

I was fortunate that With a number of years CRM data and a significant statistical population you can use the stats out of a CRM to look at win rates, time to close, sales forecast accuracy etc to model a pipeline into a sale forecast outside the rose tinted specs of sales and marketing - something ENET don't have.

They should thoigh use some very standard sales opportunity methodology the examine individual opportunities in a disciplined and standardised manner, this would include an understanding of the customer decision matrix and competitor positioning, their timetable and approval process down the the individual aspirations and relationships (with other companies) of decision makers, what is the compelling event and ROI etc etc.

I do think ENET get very excited far too early when a company expresses interest, even when they state advanced negotiations (which I perceive that the product solution is agreed and they are getting down to t&cs) I think they get a bit ahead of themselves possibly giving a lack of focus.

As you say a couple of RNSs can easily take this into double figures share price, depending on the behaviour of Bergen who, with their history with enet, certainly don't owe enet any favours.

Let's hope this is the week for an uplift.

Island.

Key is understanding the software / SaaS business model.

With "sunk" r&d and very minimal / zero direct costs gross margin is incredibly high, net costs are a mix of fixed and variable (sales bonus).

Basically a highly leveraged model where a lot of revenue flows through to the bottom line, and as sales increase the proportion increases.

Key in the rns is the use of partners, yes you share margin but it minimises cost and allow you to lever their sales and services teams reducing risk, especially important in geographic expansion where you are looking to grow quickly with partners with existing strong networks and contacts.

Didn't add to my holding recently, wish I had but looking forward to the ride for the comings months / years.