Ethernity Networks Share Discussion Threads

[pjj71] 10/5/2021 08:34

Timmmbbbberrrrr!!!!!

[andyview] 10/5/2021 08:20

Added a few more this morning, listed as a sell.

Gla

[dplewis1] 10/5/2021 08:07

More new kit announced today.

[purchaseatthetop] 10/5/2021 06:50

As Steely Dan sang "Katy Lied".

[astralvision] 09/5/2021 21:18

OI2 years old, ENET really are ahead of their time!

[outlawinvestor] 09/5/2021 21:16

Nice story even if it is over 2 years old!

[purchaseatthetop] 09/5/2021 20:55

Taken from LSE board poster Traceylied:



"The ENET vRouter network appliance is available in two convenient ordering options: Ethernity vRouter software and a pluggable ACE-NIC100 SmartNIC, for installation in third-party COTS servers, and a ready-to-use turnkey appliance that includes a server with the vRouter software and ACE-NIC100 SmartNIC installed. The ENET vRouter is currently under evaluation by multiple potential Asian customers."

Last sentence is the key. This is just released.

Ready for an interesting next week.

[outlawinvestor] 09/5/2021 19:12

THE 400 GB/SEC ETHERNET UPGRADE CYCLE FINALLY BEGINS

“For quite some time, there’s been this talk about the 400 Gb/sec upgrade cycle and we have been saying for almost two years that it will take some time,” Sadana continued. “And while we always knew it would be coming, now we can see customers doing the pilot runs and so on and getting ready for second half. So that’s really what gives us the confidence. It’s not much more than that. There are plenty of issues on the supply chain side and so on that all customers have to work through as well. So, it’s really more in the planning stages right now. But we certainly are feeling better than before.”



Pretty sure ACE-NIC400 will come along in the near future!

[astralvision] 09/5/2021 12:09

Yes, good post OI and PATTThe funding side has been sorted, we've still got very few shares in issue. I'm working of c 60m or so once 5G's are all converted.£25m, £30m or whatever m.cap, it's absolute chicken feed for what's on offer here and the very near term potential, in fact it's happening right now.I'm expecting very strong news flow this year, Tarana is just the start, and a very nice start too. Gawd knows where the share price could be by the end of the year, certainly it will have a pound £ sign in front of it, question of how many pounds, imo.GLA

[purchaseatthetop] 09/5/2021 10:26

Outlawinvestor.....interesting as I was just looking at the same!

Also...I track Tarana jobs.



A month ago there were 27 jobs. Today 32.
This is the best way to track company growth before it happens.

We have gone past the "we are going to get diluted to hell and back" phase. That is always the worry. Onwards and upwards. 60p this week IMO. PATTtrueforecast..

[outlawinvestor] 09/5/2021 10:03

But we are where we are ... and future prospects looking good.

Couldn't agree more. I can only imagine that CFO Mark R is sleeping a whole lot better right now than this time last year. I suspect he was hoping to raise substantially more from the July fundraise subject to share issuing authorities. The 5G agreement was his last resort for breathing space to last a couple of years. IMO, he was planning for frugal opex and zero to minimal capex.

Fast forward to May 21, funding has been significantly accelerated, R&D efforts that were previously on ice are now back on that table, pre-marketing has started on the new UEP-60 appliance, recruitment is (still) in full swing - currently showing 7 engineering roles available, some within the Cloud Acceleration Group i.e. vRAN, cRAN, DU, UPF.




So, absolutely yes, "future prospects looking good."

[greg the grinch] 08/5/2021 15:22

5G have to keep an orderly market - they cant collapse the price.

Risk - Hmm... if they knew what was happening with Tarana tests and that future large orders were a fact, then they knew there was no risk?

The deal was a positive turning point for ENET but it was also a very sweet deal for 5G.

[astralvision] 08/5/2021 12:39

dfDeal could be structured that way, can't call of a tranche till certain share price conditions met, subject to the usual exception clauses.imoGLA

[donaferentes] 08/5/2021 11:52

But we are where we are with no damage done and future prospects looking good. We may never know the full history of how we arrived at this happy place.

[donaferentes] 08/5/2021 11:50

It still remains a mystery why they regularly delayed "calling" for the shares so long after "settlement" paying a higher price than they needed to.

[donaferentes] 08/5/2021 11:49

Or could it be 5G are selling their ENET shares on off market to another party?I've for a while considered this probable - not least to 5G's partners of the LLC, a favourite corporate entity in the US for all kinds of risk business for HNIs. No CGT or HMRC concerns - all happening stateside

[astralvision] 08/5/2021 11:42

25th Sept, the day of the 5G deal, the shares were around 18p. Although liquidity has improved over that time, the market can still be tight. The shares have trebled in that time. Consistent with 5G off loading millions of shares? Absolutely not, imo.Off market transaction is how they've kept themselves under 5%, refuelled for the next funding and maintained a rising trend so they can make a good profit by selling off market. Plus sprinkle a few into the market for liquidity purposes.All makes perfect sense to me.Imo

[astralvision] 08/5/2021 11:36

Cheers cyberbub.This route makes sense to me . If you add up the total shares that 5G have been issued with, then they have had to go somewhere and I simply don't believe they've ended back up on the market, other than for liquidity purposes. The trade data, although difficult at times to interpret, does not indicate that large sales have been going through on a regular basis.

[cyberbub] 08/5/2021 11:28

Yes, anyone can transfer shares off-market, you need to certificate them first and then you can complete an HMRC form to transfer (ie. sell) the shares to the new owner. Of course you will be liable to CGT in the same way as if you sold on-market.

[astralvision] 08/5/2021 11:25

patt Last thing, least for now. Totally agree, news hits this stock and the word gets out to a wider audience if the massive near term potential here and we're going to be £1+ with no problems. That would still only be £54m market cap. I think it's realistic to look in terms of £100m market cap, certainly this year, and that will not be the end of the journey. So my initial target for this year is £2.You mentioned 'spike', yes, I guess we may well get volatility, but for anyone who buys on the spike, or purchases at the top, I reckon they will soon be in profit!GLA

[astralvision] 08/5/2021 11:20

I hasten to add re my 'questions' bit that if what 5G are doing is offloading via off market transactions, then they are perfectly entitled to do so and everything is totally within the rules. ENET have already stated 5G are aware and comply with disclosure rules. I think we will end up with several entities all owning % of the stock but all under 5%. The off market transactions would also explain how the stock has trebled whilst the 5G deal has been running. Yes, it could well be 5G have supplied a certain amount of needed liquidity to the situation. But add up the shares they've been issued, not all these have hit the market and we ain't had a 5% declaration. Something has to give. That something is off market transactions, imoGLA

[astralvision] 08/5/2021 11:13

Cheers patt Yes, as my post indicated I'm thinking the most likely outlet for 5G's shares is off market transactions, so that very few , possibly none, of 5G's shares are hitting the market. It makes sense, it keeps 5G under 5%, which they clearly want to do, makes those off market transactions easier without 'questions' as to their whereabouts. And if others, like the Tarana guy you mentioned, see value here, then why not. Also selling the shares off market refuels 5G to provide more funding for ENET. We are simply not seeing the size and number of trades that would explain why 5G are under 5%.Off market transactions explains it all and would work for all parties.imoGLA

[purchaseatthetop] 08/5/2021 11:05

astralvision....very good points you make. I was being too simplistic. I had not thought about "death spiral" but those are usually distressed companies which does not apply to ENET.
It seems that there is probably a share sale section in the agreement to stop massive release of shares. And you are right that private sales.

My guess is that both sides were running a risk but worked together to manage that risk. That is why I would not be surprised if 5G had sold part of its holding to the likes of Grey Wyler who is behind Tarana.

[astralvision] 08/5/2021 10:49

On the subject of 5G and their holding, I posted this yesterday on the other board:On my calculations 5G fund have to dispose of a minimum of 1.135m shares effectively in May to avoid an over 5% declaration when they receive the 2nd issue of c 1.016m shares early June. And that is assuming they had zero shares as of the 20th April announcement.I don't for a minute believe we are going to get a declaration so what's going on here?Have 5G got some sort of agreement/deal with MM's to offload shares? But we're simply not seeing the trades to back that argument up?Or could it be 5G are selling their ENET shares on off market to another party? Perhaps this method could circumvent trade reporting rules whilst also keeping 5G under 5%?If the third party was also under 5% then we would never know. I guess the only way to find out is to regularly look at the share register. I believe investors are entitled to look at the share register, but would have to look up how you do that.

[astralvision] 08/5/2021 10:45

patt
Whilst I wouldn’t disagree with too much of what you are saying, I feel the following points are worth raising.
Whilst 5G took a risk, ENET probably took an even bigger risk. Delays, market turmoils etc could have meant they were diluted to oblivion, although I understand there were certain safeguards in the deal.
Re we know everything about the deal. That is almost certainly not the case, the deal probably runs to a hundred pages or more , and whilst we maybe don’t need to know, the intricacies of the deal are hidden away. Eg can 5G sell short, forward sell, arrangements when they can’t sell, there will be numerous clauses and bits to this deal we will never know about.
What is clear is that this deal has worked for both sides and ENET and 5G are to be congratulated for that. This type of financing is often called ‘death spiral’ financing, as the lender sells shares into the market, depresses the price, gets more cheap shares, continues to sell into the market, rinse and repeat. It didn’t happen here and is a rare case, imo, of this type of financing working.
ATB
GLA