Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Its a real shame with this company. They clearly have the tech and strong R&D, but zero ability to manage their finances.
Some excellent points here by number of people.
IMHO - ENET is on the ropes. However, IP, R&D , Patents, contract with Tarana/Asian OEM is worth alot more than the Market Cap - but they just don't have the funding. They urgently need a new funding model (As Dallo alludes to) - to bring stuff to market with it is JV or something else. DL is great at tech and innovation, not so good at managing a business!
Updated Company presentation:
http://ethernitynet.com/wp-content/uploads/2023/01/Company-Presentation-January-2023.pdf
first big decent buy i've seen today (100k) after a while.
To me the company has great tech/solutions for a market which is too nascent and not likely to fully form for some time yet.
Add to that the fact that DL/MR are poor communicators and not great at the financing side, its now sitting at 13p (rightly so). Could be a good bet, one I've taken, but I'm not sure really if in the next 2-3 years they will really deliver a company that 3,4,5x what it is worth today. At least mgmnt have plenty of skin in the game.
one thing with enet which is stand-out (apart from the tech), is the fact that senior mgmt have skin in the game in droves! Clearly David seems to think the pipeline is strong.
Firstly, thanks all to for at least sane commentary and good debate.
To those leaving/selling, best of luck in other investments.
To those staying, IMHO its never nice to be diluted - but putting recent RNS's together, its clearly needed to finance delivery of products. Obviously if this could be done without tapping 5g it would be great, but we need to acknowledge this is a fledgling company with limited access to sort of financing (debt) required that could take the tech to the mass market. Happy to hold still, and given it is sub 10% of my portfolio, the pain is milder (and my avg is 24p).
Wise words from Dallo!
This is a great company in the making, because of the tech, IP, and a senior team that has a skin in the game in buckets.
Tarana is a good example of a very-large company that Ethernity are supplying, and $20m of revenue sounds pretty amazing for company that had great some great ideas 24 months ago. As they move to execute and sell various solutions/products, there will be lots of volatility. Just think how de-risked this is today vs 18 or 24 months ago. I'd rather hold right now and see where we are in 6-12months, than try to time a bottom.
thanks icepick for the number re BT. Worth noting BT would probably use Tarana for "last mile" and less "urban" locations. In the UK the govt has largely committed to ripping up roads/pavements in major cities (through cityfibre). But the nonetheless from a contact I know at BT who was involved in the initial stages of testing Tarana, they were gobsmacked (initially didn't believe the performance numbers that Tarana were quoting). Also said had this tech been available 5 years, no way on earth would cityfibre got off the ground.
I think we need to draw a line under to be honest. But one thing I will say is, DL is one man who would have hated to dilute himself if he didn't need to - he's previously said this is the mistake he made with Broadlight. Clearly the facts at hand led him to do it, and to me Dallo's comments make the most sense, and lets be honest, if they announce some big news between Q4 21, and Q1 22 we all know this thing will take off like a rocket ship, placing or not. We know ENET can play with the big boys (Tarana) is one very big and recent proof. Chill, relax, look away, for now, but this thing is defo going to take off. The risks have now largely been put to bed.
I only want to say one thing - Hear hear to Dallo. Speaks alot of sense. Too many PI's take this stuff way too simplistically - the BOD have the played the hand given to them a number of times. Yes it is painful, but remember, we are basically taken part in a venture cap type company so for (i.e. needed lots of cash to get idea/tech off the ground in anticipation of the market being there in a few years, then had to adapt strategy to fash changing events on 5g which highly politicised). You'll only ever get a 10's of these types of opportunities in public market space - take it with both hands and look back in 2-3 yrs.
thanks TL, Dallo and Sergi -
TL makes a good point on margins too. The more I look at ENET, the more I think in 5 yrs this stock's mkt value could be significant multiples of today (anything from 10x to 40x). Extreme I know, but this area is nascent, and ENET clearly have multiple good solutions in areas that are ramping up heavily.
In my mind - next 3/5 yrs could mean significant riches. If revenue ramps up over the coming years towards ~£150m, based on a c.35% net margin roughly ~£50m ebitda. For a tech company 18-20 P/E is fairly conservative meaning a mkt val of £900m. Could mean annual divs of around 50/60p in 5years time. Unless my maths is very wrong
Wow!! Brilliant stuff in the forward looking statement.
All the long-term holders can see this being a 10-20 bagger from here, and easier too see when you have TL bringing the various pieces together like he/she does so nicely.
H2 21, and H2 22 should see multiple announcements that the market should "recognise" and re-rate the share price. For now, any friends/family/ppl here wanting to add, its a pretty good time to do so. ATB DYOR
(btw glad Marcal's gone, Cambridge another member of the short-term price movement club might get bored and move on too!)
TL - you're picking up some very interesting stuff here. I'm very excited for H2 - if any of this is ENET my god we're looking at £2.
uhlf - I share you're sentiments, but thinking about its better they get out, if they can't handle the ride.
This is a small nano-cap AIM, no glitz no glamour here - we know they'll do well with the tech/proposition/ patents etc etc , but it isn't going to be straight line to £3-5. If those who've left can't see what ENET have done with Tarana, and how that is game changer for a company this size, they won't see the 5g/DU pieces etc.
Happy to divulge - I have 44,000 currently (that is c.18% of my current portfolio though), and I'm in my early 30's, so don't have firepower of some here. But I'm a LT holders with at least another 5 yr time horizon.
Just shows how inefficient the market is at pricing news - even though I am fully loaded (ENET is a 18% position in my portfolio) if it falls further I might be tempted at one final more nibble.
ENET is now fully derisked, sorted funding out, and shown its mettle with the Tarana wireless solution. The 5g rns will come, just unfortunate that the "quick" money wants it now, and are willing to practically give away the stock at 45-52p today (when it is easily worth 1.00-1.50£). They will regret in a year or two's time.
Feels like vrs is a long term hold (5yrs min) as graphene becomes commercialised - vrs are poised to benefit if graphene commercialisation gets off the ground.
To add a little bit of insight to why ENET hasn't rallied with huge institutional interest - sorry in advance if I'm telling anyone to suck eggs here. A £15m m'cap means a very small number UK Focussed nano-cap funds have ENET as a possible investment in their universe. These fund managers rely on broker notes in the first instance, and then do proper due diligence - so the VSA update notes will start to help, especially if they are able to report possible Tarana revs etc etc. Unfortunately until we get to c.£50m+ (i.e. £1/£1.50 per share) we probably aren't going to have a huge amount of institutional interest.
And in terms of the regular punter out there, its difficult for ENET to appear in their cross-hairs (although there was the IG article previously), and also unless there are clearer figures, most just don't have any idea on the opportunity set (and I don't too, but this Board helps ALOT!!) which makes me very thankful for enet to come into my path. Obvs a nice write up from various newsletters, coloumns might help - Simon T of IC did one for MWE (another israeli small cap on AIM), and that doubled over the next month.