I am wanting anyone wishing to respond not to label others as "down" or "up" rampers, or have any abusive language. I am looking at investing into penny stocks again, after a significant break, and am looking at this one at the moment. I want this thread to be productive.
Here are my concerns about EN1 (from my reading of EN1, if I am wrong regarding the below, I apologise, please correct me if I am wrong):
1.
Never reached a net profit.
2. Two directors have currently more than $2 million dollars borrowed from the company. The CEO and Chairperson are the same person.
3. SOI have increased more than 10 fold since listing
whilst the price of shares has decreased by 98% (25 cents on 15/12/2017, to 0.5 cents today). Interestingly, from the date of listing (14 December 2017) the company's stock has never gone up, it has just dropped from the very first week of listing. Commonly, an increase in SOI is coupled with an increase in share price. In this case the shareholders have not only experienced a 98% drop in investment, but also the value of each share has also been devalued x10 times. Most recent announcement: 2,448,571,469 shares on issue
December 2017: 249,669,858
4. From the recent issuance of shares to company staff, it appears that the company prefers to dilute shareholders by issuing more shares instead of paying staff in cash.
5. How is anyone being awarded any bonuses at this stage? No net profit since listing more than 3 years ago, and yet "milestones" have been achieved?
6. A business model which in my opinion is questionable at best, particularly given the fact that it hasn't been able to produce any noticeable increases in income during 2020, when the entire western world was pretty much sitting on the internet and doing not much else due to Covid-19: there was a 2020 online shopping and internet surfing boom, which it appears EN1 completely missed.
7. Due diligence by me found a few lawsuits involving EN1, some from high end clients, such as the BBC, who are chasing EN1 for money, for an extremely small sum for an ASX listed company. That hearing is schedule for 02 June 2021. (
https://www.docketbird.com/court-cases/Bbc-com-Us-Inc-vs-Engage-BDR-LLC/c-lasu-2019-cv-19CHLC19461)
For anyone holding this stock I have four questions:
1. Do you understand the difference between revenue and profit? Why is revenue the main thing being announced by EN1? They rarely mention net profits.
2. Have you calculated how much (1) your shareholding has been diluted and (2) your loss/profit has been on your investment in EN1?
3. Can you succinctly explain what EN1 actually does? How can EN1's business model complete in today's market, and how it is differentiate itself from its competitors?
4. Why, during the last year, when we can say that most of the western world's population was forced to stay home and shop online, did EN1's business model, which from my understanding is based on online advertising and revenues, not increase in line with the huge rise in online shopping and online traffic across the world? I am reading many reports of companies reporting huge jumps in its online sales (look at Myer Holdings for example). Wasn't this THE opportunity for EN1 to prove its business model during Covid-19?
