Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Icepick I think that he read the report that clearly states that they are funded then when he found that was not true decided that he didn't want to be part of the sham
I am here for profit and have no ethical or emotional interest in the company.
When I am ready I will drop them like a soiled nappy in the trash.
I think that the share price will do very well but as he said there are many others.
Mr 500k had a 2 year outlook but told me that they have behaved like cowboys and he has no faith in their ability to manage their finances.
I couldn't argue about that, two very poor placings that have both resulted in poor shareholder value.
Someone needs to be accountable.
I expect the market to look not much further than the headline which is why we have this reaction. It would have been the same at 70p if they placed at 50p.
The market judges the event harshly and it's not surprising. It's very poor value for anyone who bought in good faith after saying that they were funded. It doesn't matter what it was for they should have done better.
Moving on if you like. What would you like to discuss.
As Ethernity don't sell hardware they sell complete solutions which the OEM takes to production and sells as their product through their network. It's much more likely that an OEM would be paying Ethernity than Ethernity having to spend anything beyond development and proving the product. Usual business for Ethernity.
The model doesn't require large investments from Ethernity.
Just following the momentum. I don't much care if it goes to 34 or 29. It's the result of the placing which had they waited just a few weeks would have been at 50p not 35p. Momentum was strong and they ignored the absolutely obvious. It doesn't matter what happens they can't put that dilution back in the box.
It's not the dilution that concerns me it's the lack of awareness and understanding.
The market has taken the lack of strategic perspective as a sign of weakness and I do agree with that. I am not concerned about the tech. I know much more than is public at the moment. We'll get production orders for DU cards and another UEP contract for an outdoor unit from a massive US OEM.
Q4 I expect a rush on Tarana numbers and substantial IDU sales through the global aerial vendor. That will be a $6m order over 6 months.
Yes the Aviation switch contract is still on but will be small by comparison and will confuse the market so I expect it in with the next results.
Anyway I am not expecting the share price to do anything but drop without news.
Unfortunately for many I think that the placing was a clear signal of a lack of understanding. Added to the previous disastrous placing it demonstrates a course of conduct that for some will be a strong indicator of a negligent financial team. Just saying that this view is strongly supported by the collapsing share price. An event totally created by poor decision making.
It is a view expressed to me by several who have now sold including Mr 500k.
I don't agree but I feel that they have done themselves and us no favours.
It really doesn't matter what the money is for it's the timing that is a problem. It's short term I know but many look at momentum to time their buys. Right now there's absolutely no reason to buy as without news it will go sub 30 unfortunately.
Up to 4 units per tower. 1400 units will be installed in 2021. However given the RTA and others deploying it could still go higher. Producing immediately $500 a unit and I believe $500 more over 5 years (not confirmed by Ethernity)
Greg the actual fact is that we know nothing so it's hard to tell if they could have waited a few weeks to place at 50p. I guess if nothing happens in the next week we'll know that they were totally disconnected with the market.
Ethernity products are complete solutions they don't make hardware, don't invest in production capacity. They design and deliver complete solutions for OEMs to build and brand. This model takes very little cash to deliver.
Barriers to entry are very high but that is the tech not the investment.
It doesn't matter what you say Greg the market is not listening to you.
I say again. It's not the purpose that concerns me it's the timing. It shows that they are disconnected from the market and that concerns me greatly.
We saw it when the share price fell to 12p last time. I bought over 200k at 12p because I saw the disconnect. The management were oblivious and remain so.
Greg our views are unimportant as I suspect that we are all holders. The valid views are the buyers, sellers and the MMs who are walking down on poor sentiment and weakness. The question is not if the placing is needed or if it will reward 1000% the question is why now, what's the hurry.
Yes let's lock in at a low value with no reset or exit. I tell you had the share price dropped to 30p preplacing it would have been pulled
Sergi unless the Ethernity management are party to the leads and approaches to Tarana which I very much doubt really they are just responding to orders. However to see what's coming you can't look at the orders. The $2m total is firm orders. It's a very small part of what will be as new deployments come on stream. I doubt very much that the Ethernity board are informed about contracts or deployments just numbers and deadlines.
I know directly much of what is happening at Tarana and knew about a new substantial deployment 2 weeks ago.
Ethernity will sell thousands of SoC to Tarana over the life of G1.
Development of G2 is happening now and Tarana believe that it will be released in 2023, so probably 2024.