Company Brief - SEN - Senetas
I've been following Senetas over a month and it seems that the price has plunged due to various uncertainties, such as previous first quarter profits, its US distributor (investigated for stock options and accounting practices) and the recent restructure / capital raising. The negative sentiment does not seem to stem from their previous annual results.
Given their current price of 30cents and EPS of 2.02cents at FY2006, this is a PE of 15 for a hi-tech company which is profitable and positive cashflow.
NEWS - a joint venture is announced with a French company on Quantum Cryptography. This may sound new and should be exciting but in the US there is a company call MagiQ which is in this area. Nonetheless the market is new, and there are only a few players.
Good points include overseas market penetration with clients in US, Middle East and JV with French company. Directors mostly have law background - not sure if this is advantage - but have personnel with IT experience (incl CEO). Product range also exist, hence it does not rely on single product.
Recommendation: Speculative buy.
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment