Ethernity Networks Share Discussion Threads

[outlawinvestor] 12/4/2021 09:52

Cheers dplewis1 - much appreciated.

Agreed with you both, even at say $500 the financial returns for Ethernity are immense as we consider the the potential scale going into 2022.

Interestingly, Tarana's initial focus was 4G LTE small cell backhaul - a market that failed to gain traction. Small cells are a critical part of 5G infrastructure, important for mmWave, massive IoT and edge computing. It would be interesting to know if the small cell backhaul application is still on their roadmap as again it could be a great opportunity for Ethernity.

[greg the grinch] 12/4/2021 09:44

re the patents and Tarana: it seems to me their fortunes are tied together as each has one key piece of the use case jigsaw puzzle - key components at different levels in the tech stack, i.e. OSI layer.



The per unit cost is very hard to guess - we dont know if they have an agreed price that reflects ENET's R&D costs - could be anything from $350 to $2k IMHO.

Looking forward it will be a significant amount of cash.

[purchaseatthetop] 12/4/2021 09:35

The great thing about the Tarana order is that it is self-funding. Assuming gross margin of 75%, and payment date of 90 days, quarters 2 and 3 are funded by payment of deliveries from Q1 of the contract. Extra working capital requirement for this contract half of naff all. Really really important IMO.

[astralvision] 12/4/2021 09:29

Hi dplewisFunnily enough $500 was my stab at it, just guesswork really based on what % the $400k might represent out of the initial 5000 units.$500 a throw still represents a great opportunity for ENET. You could see Tarana ordering 10,000 units next year or more, $5m to ENET if $500 is correct. Helps to derisk the proposition here and once those 5G orders start flowing in we're off to the races!Happy days!GLA

[dplewis1] 12/4/2021 09:28

Please don't view that post as negative, this is still good business for Enet and I am still long up to the ying yangs in this share, but I do like to keep things in perspective. Assuming 10m revs is exciting but not based on reality.

[dplewis1] 12/4/2021 09:18

Outlaw/Primerate you've made some really good posts on the other board especially the one at the weekend saying that it's not the case that G1 is somehow based on Ethernity's patent - you're spot on there. TL is knowledgeable but he likes an intricate narrative and his current one is wayward. He's also way off with that USD 2k per unit figure .. I've done more asking around and 500 bucks is a much more accurate picture

[greg the grinch] 12/4/2021 09:13

Now it is a case of sittin and waiting. I posted this a while ago on another thread.

Here are nine surprising things Jesse Livermore said regarding excessive trading:

1. “Money is made by sitting, not trading.”

2. “It takes time to make money.”

3. “It was never my thinking that made the big money for me, it always was sitting.”

4. “Nobody can catch all the fluctuations.”

5. “The desire for constant action irrespective of underlying conditions is responsible for many losses in Wall Street even among the professionals, who feel that they must take home some money everyday, as though they were working for regular wages.”

6. “Buy right, sit tight.”

7. “Men who can both be right and sit tight are uncommon.”

8. “Don’t give me timing, give me time.”

and finally, the most important thing:

9. “There is a time for all things, but I didn’t know it. And that is precisely what beats so many men in Wall Street who are very far from being in the main sucker class. There is the plain fool, who does the wrong thing at all times everywhere, but there is the Wall Street fool, who thinks he must trade all the time. Not many can always have adequate reasons for buying and selling stocks daily – or sufficient knowledge to make his play an intelligent play.”

[greg the grinch] 12/4/2021 09:10

patt - nice to see you agree with the 'loony' -- :o)

Lets hope ENET turns out great for all of us.

[astralvision] 12/4/2021 09:08

I like your analysis GtG

[purchaseatthetop] 12/4/2021 09:07

gregthegrinch.....fully agree. the risk is always liquidity and dilution at this growth stage post development investment. Same as ITX. Once that fear fades the price leaps.

Looking at ENET gross margins (that are far higher than ITX) there is far less exposure to working capital needs to fund the growth. The huge list of recruitment on their site is, as you say, clear confidence and willingness to spend.

Very very exciting. All IMO and do not believe a word I write.

[greg the grinch] 12/4/2021 09:02

Hmm... I think the whiff of 2nd hand beans is about to fade.

There comes a point where it is worth ignoring additional funding if it is at a small enough amount not to significantly negatively impact the share price I am starting to wonder if funding will be required at all.

The management have a lot of skin in the game so hard to see they would be hiring etc if they were about to run out of cash and require a placing, which would further dilute their stake when we must be at or approaching breakeven/profit. 5g would not have done more funding if they were not sure it was a good investment - more specifically in an illiquid market, they would not expose themselves to holding shares they cant sell before another placing.

I think the market is going to start to ignore potential funding and only look forward to the potential, and it is going to be a case of the bigger risk is delaying buying and being left out before a very quick rise hits on good news - it will then be too late to buy in decent volume.

On breakeven or a small profit, plus decent forecasts, ENET will do ala CLX and hit £100m - but ENET has the potential to be much bigger.

In summary, the requirement for additional funding is fading so the market will start to discount that risk and focus on the potential - on a risk/reward basis ENET is now getting better as each day passes.

All IMHO and DYOR

GLA

[purchaseatthetop] 12/4/2021 09:00

astralvision.....never a good time to buy AFTER new arrives. No shares available and the price is double even if you can get them. You end up spiking each other.

That is why, just like ITX, I buy early and then sit and wait. It will happen. Next week, next month, 6 months time....no idea....but it will happen.

[astralvision] 12/4/2021 08:57

Good stuff patt.If three of those trades were yours, looks like you've been joined by others picking up stock as well.This is the best sort of time to add, imo.When news hits then the thing moves faster than you can pick up stock.GLA

[purchaseatthetop] 12/4/2021 08:54

Added nearly £15k this morning in three trades. Time for a little break and watch.

I think it was me keeping L2 happy an busy early doors astralvision

[dplewis1] 11/4/2021 15:32

Yes both my kids have 10k ENET shares each. They are 6 and 3 so hopefully they'll thank me one day (although probably not as they will be horrible 18yr olds when the JISAs mature..)

[outlawinvestor] 11/4/2021 15:26

I used to have ITX on my "baby outlaws" watchlist - companies that are a great fit for my little ones' junior ISAs, companies I see as solving relevant problems and should mature together with the young ones!

In reality my attention turned to ENET last year as I collated a list of UK micro-caps who own meaningful but perhaps overlooked IP. Didn't take long to add ENET to the list, took even less time to appreciate the people behind the company and the opportunities before the company.

[outlawinvestor] 11/4/2021 15:16

Yeah, I appreciate the views and civility on both platforms. Easily the best stock/company discussions I have come across for a long while. I post as PrimeRate!

[purchaseatthetop] 11/4/2021 15:06

outlawinvestor...I repeat your "hear hear". and add a solid "good boy"

Find the company which is developing the services/products and has the right leadership, IP, staff and strategic vision - buy in early - leave the company to the service/product delivery for a number of years - ignore the share price as the value will arrive.

In investing - less is more. Warren Buffett almost never sold.

I rarely get excited about a company like I am becoming about ENET. Presently only ITX is on a par. I have £100k in ITX and will have £40k in ENET by Monday. That figure will rise.

[astralvision] 11/4/2021 14:42

Yes, it's good to talk on here as well, both boards have their strengths and weaknesses.I'm uhlf, as you probably know.GLA

[dplewis1] 11/4/2021 14:34

I've already converted my 30p warrants as have a few others - I'm sure David will do so once the share price gets back up into the high 30's. Nice to have some chat activity on here as well as LSE as it shows interest is growing (although I think most on here also post on LSE.. I'm bidnolid on the other one FYI..)

[astralvision] 11/4/2021 14:05

OIThink the re-rate could be about to start very soon.We will see.Certainly the co will want to bring the remaining 30p warrants in, they've got 3 months to do that. I think that will be ample time.

[outlawinvestor] 11/4/2021 13:25

As last weeks deal showed, there is a serious amount of tech within this company

Hear, hear!

That, for me, is the crucial point. The company! The company!! The company!!!

I plan to ignore the share price for the next couple of years and stay focused on the company i.e. the people, the IP, their products and the markets their solutions serve. This is one of the few firms out there where one can realistically expect the company itself to eventually deliver financial returns to its shareholders. And that is the reason the stock market has no choice but to eventually take notice and rerate.

[astralvision] 11/4/2021 12:52

pattENET floated at 140p coming up for 4 years ago, raising £15m (gross) and at a m.cap of £45m.The delay wrt 5G roll out hit them hard.But the near term prospects are now far better than when they floated. Deals, alliances, field trials, revenues etc all developed and being developed.As last weeks deal showed, there is a serious amount of tech within this company and it's very near term to serious commercialisation, in fact it's now.To be able to pick up this situation for £16m is , imo, pretty unbelievable.I think the situation now is far better than when they floated, albeit they could use a bit more cash. The same m.cap as at flotation is equivalent to a share price pushing £1. That seems a fairer assessment of where ENET are now, imv.GLA

[purchaseatthetop] 11/4/2021 12:28

I am getting financially in deeper on Monday. The more I research the more potential there is, and more importantly, that potential is currently being delivered and nobody really knows about it. Amazing.

I always look for IP protection and companies becoming the "Focal Firm" of customers, which is the ultimate in strategic relationships as ENET are bound into the existence of the customer. This is incredibly rare. This is happening here.

Going to be fun.