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ESK - Etherstack PLC

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Etherstack specialises in wireless technology, specifically the development of software for use in transceivers enabling them to communicate with a radio network and other transceivers.

The company licences its software and designs to companies who manufacture telecommunication equipment primarily for government agencies and utilities.

Etherstack has previously inked technology, distribution and licensing contracts with the likes of Cisco Systems, Raytheon Company, Rockwell Collins, General Dynamics C4 Systems, Thales Communications and Lockheed Martin.

http://www.etherstack.com
 
I bought a micro parcel today at 80c.

It's on a PE of 6 if management guidance is correct.

I don't really understand their product to well, although revenues are mainly royalty based which appeals to me.

This comes into my portfolio as my smallest holding. It was overpriced when it first listed and has been sold off significantly to what I deem is good value. No liquidity though...

Anyone else aware of esk?
 
catfish said:
I bought a micro parcel today at 80c.

It's on a PE of 6 if management guidance is correct.

I don't really understand their product to well, although revenues are mainly royalty based which appeals to me.

This comes into my portfolio as my smallest holding. It was overpriced when it first listed and has been sold off significantly to what I deem is good value. No liquidity though...

Anyone else aware of esk?
Click to expand...

Did you read their annual report? You know their auditor expressed doubt about ESK as a going concern? Read between the lines, no royalty coming through really, just hoping. A disclosure here, I work in IT and I won't value this company more than $3m (though they seem to be worth $33m given their shares price). They seems to me to be a bunch of guys flogging softwares to sub-contractors aroung the world (clue, they have no direct contract that I can see in their info). And having offices in six countries with a staff of 48 ??!! Sounds fishy to me. Not a well glued team in my opinion. But then, I am looking at them from the point of view of an IT professional.
 
catfish said:
I bought a micro parcel today at 80c.

It's on a PE of 6 if management guidance is correct.

I don't really understand their product to well, although revenues are mainly royalty based which appeals to me.

This comes into my portfolio as my smallest holding. It was overpriced when it first listed and has been sold off significantly to what I deem is good value. No liquidity though...

Anyone else aware of esk?
Click to expand...

At a high level we specialise in wireless technology - Etherstack licences its software and designs to companies who manufacture telecommunications equipment primarily for government agencies, and mining and utility companies. Our customer base includes major global companies such as Cisco Systems, Thales Communications, JVC Kenwood, Icom Inc, Raytheon Company, General Dynamics and Rockwell Collins.

At a more detailed level we have three product groups:

Protocols – this is a group of software products that conform to international communications standards and facilitate wireless radio communications. The software is embedded in a chip and put inside a transceiver (a radio set capable of both receiving and transmitting). A good example of this product is the agreement reached with JVCKenwood as announced on the ASX (6 December 2012). The software includes various features and functions such as sophisticated encryption capabilities and the ability to connect a radio network to an LTE mobile phone network.

RF products – our RF team designs transceivers that incorporate Etherstack protocols software and we sell the integrated software and transceiver to equipment manufacturers. If Etherstack is requested to supply the manufactured products, the manufacturing is outsourced.

Network products – Etherstack has developed a range of core network elements and technology to provide data services, desktop console services and geographic information solutions. A good example of this type of product is outlined in our ASX announcement dated 12 March 2013 summarising the agreement and royalty stream from Cisco Systems.
 
Hi Etherstack,

For complaince purposes can you please clarify/disclose your relationship with the company?

Thanks
 
catfish said:
I bought a micro parcel today at 80c.

I don't really understand their product to well..........
Click to expand...

It pays to fully understand any product you are buying as many people who buy contributing shares have found out at their cost.

With CDIs you do not own the underlying security, you receive a beneficial interest in the underlying financial product. If you are not fully aware of what a CDI is then the ASX has a guide you can read.

The other issue about the ESK CDIs is that it is quite illiquid, partly caused by the fact that well over half the CDIs are held by directors. This is good if there are good reasons for a price increase, but the opposite occurs when interest wanes.

There has been little interest in this company since listing which may be due to it being illiquid and because they are CDIs with the price steadily falling 60% since listing.

The average daily turnover since listing has been under 5,000 CDIs which at current price is only a bit under $4,000.

Not for me, I would rather look elsewhere.

Cheers
Country Lad
 
Anyone get on ESK today? I bought a small parcel at $1.34. I watched it all day and thought this one just isn’t going to stop and it kept powering. Who knows what will happen tomorrow. Gap up would be s nice start
 

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Pump n dump of the highest order . Expect a cap raise, not much in the kitty
 
from a commentator:
Be Careful Venturing Into The Wild West

Speculation had quickly evolved into the “greater fool” theory – a case of buying something, anything in the hope that a bigger fool than you will buy it off you for a higher price...

Sadly, this version of stock market musical chairs has only accelerated with greater levels of stupidity where daily I am witnessing traders torch money at faster rates...

"A classic example this week was from Etherstack (ESK) which announced a deal with Samsung. No details on revenues or rollout strategy, just a teaming agreement for something that may or may not come to fruition. Still didn’t stop traders driving the share price from 20c to over $3.60 in 24 hours. However, the sad part is where most of the volume occurred. The ... 5 min chart .. shows this crazy run in the share price with the respective volumes. Most of the volume occurred in the first 20min of Wednesday morning, where traders had placed a valuation of over $400 million on the company! All those buyers quickly became trapped as the share price reversed course and plummeted.


Let’s put this another way. The current market cap is $135 million. It was over $400 million at the peak. As a result almost $300 million has been lost by traders speculating on this company on Wednesday."

https://www.sharecafe.com.au/2020/07/03/be-careful-venturing-into-the-wild-west/

(only post about it; don't hold)
 
LHC is the insto that holds ISX (only insto I think and also read they have personal holdings). ISX remains suspended after 9 months or so and LHC have written holdings down from $1 or something? to 5 cents odd (using independent valuers). A lot of burn there that needed soothing.

LHC held convertible notes in ESK prior to this "rise". My understanding is that they no longer hold "unconverted notes" in ESK. (ESK and ISX have common management and insider t20 names)
 
Still nipping at the heels of success

• Contractual teaming relationship with Samsung extended for a further 5 years
• USD $1 million prepayment for second telco carrier opportunity
• Accelerated payment milestones for the first telco carrier contract
• Additional USD ~$0.4 million order for new services and equipment

Background In June 2020, Etherstack signed a Global Teaming Agreement with Samsung to deliver next generation Mission Critical Push-To-X over LTE solutions to telecommunication carriers and governments utilising Etherstack’s digital Land Mobile Radio softswitching technologies embedded within Samsung’s advanced 4G/5G network solutions - this established the framework through which Etherstack and Samsung jointly pursued opportunities globally.

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Trading update and Annuals see a slump in August, with selling ongoing; an agreement with Telstra and it's back up.
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DNH
 
a few webinars around as ESK pushes for relevance. The 2020 breakout broke down

$60 million MC
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The blurb: " ESK is a wireless technology company specialising in the development, manufacturing, and licensing of mission-critical radio communications for equipment manufacturers and network operators worldwide. Its technologies are deployed across public safety, defence, utilities, transportation, and resource sectors, with offices and R&D facilities in Reading, Sydney, New York, Annapolis, and Yokohama.

"CEO and Executive Director David Deacon founded Etherstack in 2002 and brings over 25 years of experience in wireless communications ... the company is expanding its global footprint and strengthening its position as a trusted partner in essential communications markets"
 
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