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Thanks for the reply dallo
This is a long one
Part 1
Hi Dallo
And thanks for your thoughts. As an aside I’m surprised you’ve been slapped on the wrist for some of your postings, presumably by MR. I think your postings have always been measured , considerate and informative.
I agree 100% with your take that they need to fire up revenues this year. I also understand , to a certain extent, the ‘until it does there is nothing to report to the market’. My view is that the market should be fully primed and ready to receive such news and that we should be able to measure their performance re revenues against market forecasts.
To expand on that.
Forecasts. In the December 14th update they tell us:
‘ Ethernity will meet its growth plan objectives for 2022 and 2023 and is well positioned to become one of the key solutions providers in its marketplace.’
I think it is incumbent on ENET to let investors know what those ‘growth plan objectives’ are, otherwise we are measuring them against an unknown quantity. If they did , say, $5m in 2022 they could say they’ve met their objectives and how would we know any different? That is why news in itself is not enough. We should demand , as owners of the business, what these objectives are.
Older and wiser
100% wrong.
It is ENET directors who have used the words transformational and exponential a number of times. They’ve upped expectations and investors can hardly be blamed for asking exactly what these phrases mean in hard cash.
I point you to the statement by Mark Reichenberg month before last., Ist November to be precise, issued as part of a RNS. This is by no means the only use of the term exponential, David Levy has also used it. It hardly sounds like ‘plodding’, does it?
5G Fund has been a supportive and flexible funding partner for Ethernity, and its investments have provided the Company with significant working capital during this transformational period of time during which the Company's activities increased exponentially."
Thanks 01234.
I’ve made my views clear to ENET/MR, but there’s only so much you can do. Tbh I don’t think it would take a great deal of extra effort. The web site is very good and a mine of info. But beyond that there seems to be no strategy. They say they like to be conservative, yet their history is littered with revenue warnings. The placing and two revenue warnings in the last three months of last year were very poorly handled.I think they need help on IR as it’s painfully obvious that are not aware of what is required, when it’s required and how to fix it.
At least they have the world beating products, but these guys seem able to snatch defeat from the jaws of victory!
Great then that our company has secured supplies for 2022 then:
In addition, given the expected ongoing components shortages, the Company has purchased and secured sufficient critical components for its 2022 system solutions delivery (UEP and ACE-NIC100 products), and is in the process of securing all components for the mass production of our UEP products targeting innovative solutions for the existing wireless connectivity market, to safeguard against delays in 2022 deliveries.
Agree re things dropping out of sight. I’m afraid ENET are no better or worse than any other company in this respect. You tend to put your best foot forward, and if deals/collaborations come to nothing, that’s just the way these things go sometimes. Although who amongst us was aware of the Tarana developments, been going on for years yet very little was said.
As to wether ENET will ever change tatics wrt IR, I somehow doubt it. MR is all for quoting regulations and what they can’t do, compliance etc etc. Yes, they’ve got to comply but within that framework there’s so much more that can be done. ENET’s products and investment case is not that easy to explain so they need to be proactive instead of this plodding almost begrudging stance they like to adopt.
Not that it matters, and he is fully within his rights not to, but I note Dallo didn’t reply to my question on his view of the IR performance. Dallo has called for investor open day, increased news flow so I’m assuming, rightly or wrongly, he’s not been blown away by their performance.
We all know MR reads these boards, so perhaps Dallo is taking a diplomatic stance. My view ain’t diplomatic, they need to do a lot lot better. They could start with putting some forecasts out in the market via brokers. It’s the least we deserve after all this exponential and transformational talk. What exactly do they mean? Over to you, ENET.
Let’s face it, TL was not the only one who played ‘guess when the RNS comes’. Everyone who has tried has floundered on that rock. What it does prove is that ENET run a tight ship, news doesn’t leak and getting less than half the story from ‘contacts’ who tell you what you want to hear gives no advantage.
Best thing is to dyor, read what the company says, read the relevant newsflow in the market and come to your own conclusions.
My view is we should do very well despite ENET’s somewhat hit and miss style of IR. They don’t really like the responsibilities that come with being a PLC, do they.
Still, no doubt the IR machine will be oiled and brought back to life when the boys look in the kitty and decide they need that warrant money! And these guys can whip through a few mill in no time at all!
Yes, a happy medium would be great. I certainly don’t want them tweeting and releasing rubbish rns all the time.
But a consistent high quality message reinforced by brokers notes etc. And timely release of results. Why ffs does it take till June to release the annual results? Ridiculous. Could bundle them with the interim results.
They need to get their act together.
ETH
Agree, it’s the company’s view we’re all interested in. And despite ‘exponential’ and ‘transformational’ they seem a little bashful and shy in saying what they mean.
Re the macro environment, whatever that is I’m afraid that’s no excuse at all for not fulfilling ones IR duties in full . A listed company must endeavour at all times to keep shareholders fully informed. There are numerous ways of doing that. To date ENET is bottom of the class and in the corner with their performance.
Agree with your general thoughts Dallo.
What’s your take on ENET’s IR performance?
To me it’s poor, I would like to see a brokers note setting expectations in the market for this year and next. It takes the biscuit that ENET bandy words like exponential and transformational in RNS and other comms yet think they can get away with saying what that means, in terms of hard numbers. We all understand forecasts can be met , failed or overshoot, but the business should be big enough and mature enough to give investors some idea of what is reasonable. You were on record a few months ago saying words to the effect that $20m this year was peanuts. After two recent sales warnings, think we would all be absolutely delighted with ‘peanuts’. $20m looks unlikely to me, everything has been pushed out and halve it might be reasonable. The underlying point though is what are the managements expectations for this year and next? They need to take their investors seriously and put forecasts into the market, the most obvious way is by a broker note.
Clearly the market doesn’t ‘get’ ENET. They need to be more proactive, investor virtual day, interviews, regular updates, brokers notes. It’s not hard. I’ve said this for some time. Within the above the journey will be a lot harder and longer and we may not realise the true value here unless management get off their backsides and take their IR duties seriously.
Yesterday’s news may have been some sort of attempt to update or inform, but is was woefully inadequate, you can’t start informing unless you’ve got the foundations in place. The above is my take, I would be interested to hear the view of a major and respected shareholder. I have made my views clear to ENET but , to date, lip service only
atb
uhlf
It seems pretty clear there’s been a delay in the Croda project, that’s not unusual at all for projects of this nature.
I think what doesn’t help is SBTX’s failure to acknowledge this, rather than pretending all is on track. With hindsight I’m sure SA regrets ever talking about the ‘beauty parade’ for Q4. We are in a news vacuum and the sp is paying the price. Brighter days should be ahead.
ETH
If you’re ‘not trying to be negative’ you’re making a very poor job of it.
You’ve been negative for quite some time. Talk of fund raising is ludicrous and scaremongering. They’ve just had a fund raise ffs! And they have won a number of excellent contracts last year which will lead to growing revenues. The IR side needs some attention but the company is doing extremely well. That needs to be communicated, a relatively easy problem to sort.
Re the RNS , it’s a RNS reach, so only designed to inform and not be price sensitive. I’m all for ENET informing, but this just looks like a reactive bit of news cobbled together.
They need to be proactive, nurturing investors, explaining the investment case, issuing brokers reports, doing regular updates, interviews, investor virtual open days etc. In short they need to have a credible IR policy. They think the odd bone chucked in our direction every now and then will suffice. It won’t, it needs much more effort than they are currently expending. Trouble is they see nothing wrong, well, as this is clearly reactive maybe the Penny is starting to drop and the current ‘policy’ will have to be reviewed.
Don’t worry about what other investors say, doesn’t make a blind bit of difference to anything. We know for a fact that ENET are incredibly busy, there’s a bit of short term sp weakness, so what. ENET have the cash, the products, the orders, let them get on with it.
Qantas
The bod are well aware of the feelings of a number of pi’s, but they like to go their own sweet way . Sometimes that suits them snd us and sometimes it doesn’t. I doubt if they will ever change. None of which should mean we can’t do very well. Tbf sometimes they show inklings of getting to grips with the IR side of things, but they find it hard to do that consistently
All imo.
Tend to think newsflow will hot up the closer we get to ENET requiring those warrants to be exercised. ENET seem to be blissfully unaware of the need to keep investors fully in the loop until such time as they require further funding.
Given the expansion on numerous fronts, I estimate they would like those warrants in by or before summer, so stand by for a Spring of strong news flow!
All imo, please dyor.
If UHNW’s are buying in at £5, then £10 strikes me as FV.