Glad I sold up before the results just after the new contract RNS.
Far too risky with Trump’s administration. |
I'm certainly looking for an entry point. could be support at 40p maybe not but definately looking attractive at these levels. |
Personally surprised by the fall in price as nothing really new came out and they are not raising equity for the first time with results although they have previously shot themselves in the foot by doing so after results so jury still out. They continue to deliver growth but patience needed to see it drop through to the bottom line.The brave will want to buy at this new level. |
Looks like about £35000 difference between buys and sells dropped the price 16% ! |
H,
Yes!
I was struck by the stark contrast between the CEO’s perspective and the Chairman's remarks at the Share Society presentation.
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Val,
CNC has managed expectations beautifully to date. RNS's, IMC's and the occasional interview with the CEO on a podcast - the story is crystal clear and not muddied.
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This looks most interesting from today's RNS:
"...to develop ASSPs, based upon customer demand and leveraging the funding available from lead customers, the European Space Agency and various semiconductor stimuli. EnSilica currently has two significant platforms at the device evaluation stage"
The CEO came across as quite animated when discussing the potential in the Satellite Communications division. Big potential. |
Well I have got very “picky” with possible problems with my small stocks, but I reckon 50% of that is because their market is rubbish at the moment. Problem started with rising interest rates and the cost of debt which our smaller businesses have had to deal with very suddenly, while trying to expand.
So lots have been caught between the rock of equity raises on depressed prices and the hard place of expensive debt. Vicious circle, but perhaps we are over the worst.
One day, the husinesses that have survived and are actually growing well, will burst into life.
I just hope they’re not taken over beforehand. |
Pug, but that's got nothing to do with ENSI and the going concern question!I agree on the investor part to a point, however plenty of ways to shelter a good chunk of investment gains if needed. |
Premium B - The changes to CGT rules will hit investors in AIM stocks - so potentially less attractive where no dividends and trusting on share price appreciation instead. |
Pug, I doubt the budget impacts ENSI in any meaningful way, so that seems way off the mark. But agree on "expects" - most things that are not concrete should be seen as "won't"! |
The paid for analysis pages see no issue with going concern or anything else for that matter.I'll not break copyright by posting here, however this drop was quite the surprise. |
paraone3 - Key red flag word is "Expect" Usually need to take with a very large sack of salt.
Going concern warning, after UK unfriendly Budget for business and investors, very valid (imo) Plus of course the very valid points raised above by yump and DG. |
Another interesting comment from the CFO was they expect 75% of revenue to come from chip supply by 2026 on 40% margins this will generate major cash revenues. |
I think the auditors went overboard on the going concern issue because of what happened to Sondrel. But Ensilica has got a wider spread of customers and more sizeable contracts and provided that they continue as they have been in the past then there shouldn't be a problem. Considering until recently everyone was expecting a fundraise it surely can't be that much of an issue. |
O/t uktn also had an article about a silicon valley property firm funding an expansion in Cambridge life sciences park. So thats another % of money that will leave the UK annually because we don’t fund it ourselves.
Its boasted about as “inward foreign investment” when its actually just ownership. |
Have just listened to the Meet the Investor Podcast , so I am wondering where UKTN are getting their Info regarding Ensilica going bust unless they get more Funding . The CFO Christoff clearly state they did not envisage raising more funds in the near future they have suffient funds available for future operations. He did say that they might need extra funds if they secure a major contact running into 100s of million dollars , but this would be a nice position to be in. So I can only think that UK TN is holding a large short position and are trying to talk down the share price . Only Postive from IanAnd Christoff. |
Val,
I didn't mean to tie the media report to Mark's comments on the Healthcare chip.
I apologise if you read it that way, it was not meant that way. |
Simon, I don't get your attack on Mark at all. I'd rather have open communication than months of silence between interims and finals. Something has changed since Mark made his comments in September and I'm prepared to accept that because no contract had been announced.
And then you've done it again - you finished your post with a comment about a media outlet that has misunderstood today's RNS - as if that had anything to do with Mark's presentations. |
I hate having to re-read statements that aren’t absolutely clear when they should be.
This bit is like reading title deeds - I don’t know where the commas should be or what refers to what:
“ if the Company could not secure external financing and continue to execute and recover known and expected revenues from existing customers under long-term contracts which are ongoing but still to be delivered, or win new customer contracts for NRE and consultancy revenues.”
“Recover”; is an odd word.
The bit about the contracts still to be delivered is also odd. Thats a bit like Cadburys saying “we can’t keep going and supplying the supermarkets if our factory shuts down” - which is stating the obvious. |
Val,
As you say it's unimportant but a stock is a story and the narrative has to be clear, concise, factual and trustworthy.
I want to believe in this story but I want a clear narrative and when it changes I want to clearly understand why.
Mark had put into the market that the Healthcare chip was going to tape-out. Today the CEO didn't even entertain the idea.
This is how one media outfit reported today's RNS:
EnSilica shares sink as chipmaker warns on survival without more funding.
The Oxford-based business has said that it would not be able to continue trading for another twelve months unless it continued to receive funds from existing customers as well as seek external funding from shareholders or lenders.
-UKTN
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I see on LinkedIn that they've hired three new engineers in Brazil in the last week.
It's all hands on deck! |
Revenue is great but what’s the margin? |
Simon, I think the problem has been that Ensilica for more than 2 years has been mentioning Healthcare - even today the CEO was promoting it even though they haven't got the capital to move it further. In some ways, it would be better if nobody mentioned it until there's something to announce. I'm all for "under promise and over deliver" - however the underlying message is the forecast for this year is not affected by the healthcare chip and on that basis I think it is unimportant to the investment case. |
Val,
Maybe I am being harsh in my criticism. But if ain't rock solid don't mention it. If you watch the CEO today the Healthcare division is furthest from his mind.
Under promise and over deliver!! |
Simon, The 10 weeks haven't expired yet so cannot be "completely contradictory" - maybe something is still being worked on but until they can announce they cannot move forward? Maybe since the presentation in September the situation has changed - more funding required for the development of previously announced contracts to the exclusion of healthcare chip? I still think there's been an element of the potential customers for this chip dragging their feet and it is good that Ensilca is taking a prudent view to concentrate on areas that maximise short-term gain. |
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