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I've been invested here since March but rarely post on any board let alone here. I had been wondering why CE marking was taking three weeks to complete given Novacyt & Mologic (via ODX) each got their CE marking after about a week on their test products. I must admit to being a bit concerned but on reading last Friday's RNS I realised that this has been done in a way so as to expediate access to world markets, as made clear in David Budd's statement in that RNS:
"CE marking was achieved with performance studies and validations that will also support regulatory applications in other jurisdictions, such as Emergency Use Authorisation with the USA FDA and Emergency Use Assessment and Listing with the WHO. The temperature stable nature of the Genedrive® 96 SARS-CoV-2 kit means we have the potential to easily access these global markets, which are in urgent need of testing efficiency and volume."
Anyone doubting big sales are imminent from around the world would (not just EEA) do well to pay attention to this statement. Genedrive's collaboration with Cytiva and their current relationship with US milatary opens up the US market for one. In my opinion, the lack of sales data in the last RNS together with the knowledge of the additional placing shares hitting the market next week, was the catalyst for the drop. But the market/sellers did not factor in what David Budd has clearly stated in the RNS. I will be looking to add more at this level as I can see this flying on the next RNS if not before as the market digests this overlooked information and the placing shares get turned over. Genedrive's low market cap in comparison to its peers only makes the case stronger!
Good luck all.
On the website, there is a news story dated 20/09/2018 talking about a collaboration with a Taiwanese OEM under the title "Ethernity Networks and Advantech Collaborate on Accelerated vBRAS Platform". I can't see this is mentioned anywhere in the 2018 financial statement. It seems that Advantech were using Ethernity's FPGA Smart NICs in their high performance servers, specifically their SKY-8101 model:
https://www.advantech.com/resources/news/ethernity-networks-and-advantech-collaborate-on-accelerated-vbras-platform
Does anyone know anything about this as I don't recall anyone ever discussing it before.?Would be good to know if Advantech is still bundling these together and whether they actually sold any? I see Adantech they are now producing 2nd generations of these servers but cannot find any mentions of vBRAS or Eternity's FPGA inside anymore. Would be good to know what happened with this? Who is the best person to contact at Ethernity about this?
https://resources.advantech.com/products/high-performance-servers/sub_9fe67b0b-26e8-493e-9e73-2ab4eed2b38e
Yes longy, just hope the board is reading this so they can update us fully in the interims…
What I don’t get is the reluctance to name the customers. At the moment both the market and us shareholders have no clue who our customers are (except for FiberHome), despite these customers being large T1 vendors/OEMs. How does this benefit either the company or its shareholders? David already stated in the Proactive interview that we need to get the name/business known as it will lead to more sales, so what better way than letting the market know who these T1 customers are. Can anyone think of any other company in the tech field that announces its signed contracts without disclosing such basic information? It’s counterintuitive and the complete opposite of getting your name out there. Are they delivering innovative software/hardware solutions or top secret/classified tech! And let’s not forget that so far, these “confidentially agreements” have come at the cost of peanuts to the T1 vendors. Even regarding FiberHome, I believe the only reason this was disclosed was because of the joint presentation in Shanghai, otherwise I’m sure we wouldn’t have been told.
On the revenue side of things, the two contracts signed in 2018, whilst a good start, seem relatively small and combined do not come close to covering the costs of the business ($0.5m upfront plus $2m over three years plus $0.4m upfront plus undisclosed additional revenues). In the meantime, thery are churning through the cash pile at between $3-3.5m every half year. Agreed, we have the Korean OEM (all too quiet for me) and the FiberHome deals which could be game changers but even by David’s own admission, these will take time. That’s why I’m expecting a lot from these next two UEP deals, and hoping that the UEP40 one will be released before the interims. I’m definitely dreading seeing a cash position of $5m without substantial contract news beforehand!
Get the deal UEP40 done asap...
I would also prefer the new Tier 1 contract to be announced before the interims and that it includes at minimum a $2m upfront payment plus full details about significant volume deployment / revenues etc in the near term. I'll also be expecting a similar deal for the UEP200 and hope this is already far advanced and ready to be signed as soon as the product is released to market. The company spent $4m on R&D last year and I would expect as least the same annual spend in future years if not more. Added to the operational costs we need to start seeing some substantial revenues if the company is going to fulfil the goal of generating cash flow in the second half of 2020. It will also be interesting to see just how much cash is left in the interims.
We also need more details about the two Tier1 contracts signed last year. In the 2018 financial statement, it was mentioned that they were in discussions with the Telecoms T1 OEM to triple the royalty streams from $2m to $6m over the next three years. Has this been successfully concluded yet? What are the recurrent revenue streams for the Aviation T1 as this is not stated and how long will these run? We also need to know what is happening with the Korean OEM and when we are likely to generate revenue streams, how much will these be worth and for how long?
I hope we get this information in the interims. Like TL, I agree that the company has an obligation to the shareholders regarding disclosure. I think this is one of the reasons the share price remans depressed as it is difficult to price the value of any these contract in. If customers are requesting confidentiality agreements it should come at a price and have a huge company making contract attached. Apart from FiberHome, do we know who any of our customers are? Is it the case that all our customers request anonymity or more likely just the board’s preferred reporting style?
It's disappointing that David couldn't convince any IIs to take up the slack especially Miton. Either way I'm starting to think that WINS have ruined this share price. As longy said last week, it's going to take a lot longer to get back to 60p let alone what this company is really worth. Who is going to buy into this share without news knowing there is a big overhang of shares available in the market? Even with news, unless specatacular, it will merely soak up the overhang. Then you have the recent investors who bought in after the Fiberhome deal in the 40-65p range. Are they going to have the patience to stick with this? It would have been far better for WINS to have found a guaraneteed buyer even at 30p before letting Garraway get out. That way we would have at least got a new investor and a TR-1 so although the share price would have dropped more initally we would have been climbing back up by now, probably above where we are now even. I always thought for every seller there must be a buyer? Fair enough if the trade is small, the market maker could carry it on their books with little risk, but not for over 5% of company? Something does not sit right with me here and it seems the only winners are Garraway who got out without loss and can now buy back in at considerable discount if they wanted (not that they will!). I will be sticking with this even though the bid has dropped below my average as I still believe this will come good. I just hope the next contract is announced within the month and has actual figures attached and a very large inital downpayment.
Even accounting for the big discount, would be interested to know why WINS were prepared to take Garraway's large holding without having a buyer lined up? Or why one of the other big investors, such as Miton did not pick these up to average down?
Think they'd be out now as 6.03% equates to 1,963,168 shares. The 250K shs difference was probably sold off earlier. Strange time to do it though. They could have done it last month after they released the sales contract, or have waited for the the upcoming US contract to be announced.
I was thinking the same thing. Two 50K sells took it down to 48p... but then they were more than happy to drop it to 37p on the back of a few small sales! This has been more than offset with all the latest buying since the 5th yet the price has barely moved back up. Hopefully this is just a blip and we can continue upwards from here.
Exactly, but they need to raise the price significantly to make that work. It's never going to happen by just raising the price by one or two pence so I think there must be something else going on. I believe the free float is about 17% so less than 6m shs, so not a lot of shares to play with. Thinking about it some more, is it possible there could be a largish buy order in the background which they want to get filled at the lowest possible price? Hence, the unwillingness to raise the price and putting the brakes on buys? Whatever the reason, it is frustrating as I am 100% confident potential buyers are being put off.
Looking at the charts the price has climbed an average of 6p per month since mid-October, and we are already 7p up halfway through the month of February so we are definitely in full recovery mode. This will not have been lost on those investors who have been sitting on the sidelines waiting for the right 'signal' to get in which must be right about now. Afterall, although the shares have mores than doubled in the last three months, there is still a long way to go to get to anything near the IPO price! This is all very encouraging but annoying if no one can buy in. I also wonder if it is significant that the MMs have, since the end of last week, narrowed the spread to just 2p.
The person(s) who bought the 1500 (x3) and 500 shs today, bought the maximum shares available without going to NT. Now the MMs are only offering 150 shs at 47p despite the 1p price rise. I wonder why they are so keen to stop the buying? Obviously they must need some sells to balance their books so you would expect them to let this go a bit to encourage some more sellers but they aren't keen on this. Instead they continue suppressing the buy side. Can anyone think of any potential reasons why they would do this?
Just tried a dummy buy at Halifax - would only let me buy 750 @ 42p. On the otherhand are willing to take 50k off me @ 40.055. Seems the MMs are desperate for some stock. It won't take very many small buys to push this up again.