Market Update July 2017, page-47

Tamz - the best way I can explain why SEN is seen as undervalued is with the following

There is a concept often used in the oil and gas sector called risked value. You have two companies that are drilling a well . If successful both will benefit from revenue that is equal to let's say 1 dollar per share on a DCF basis . Company one is drilling in an area that has continuously produced success. 80% of wells are commercial . Therefore before they drill one would apply a risked value of 80c to this company . Company two is drilling in an area with a 20% success rate so there risked value is 20c . So both companies should theoretically trade above zero even though neither has earned a dollar yet but the likelihood of earning that value would mean each has a different theoretical value . Now doesn't mean company 1 doesn't fail and two succeeds but the odds are favouring company 1.
I see SENs current valuation and the reason I and others think it's cheap is based on the risked value of future sales of the 100gb encryptor . Its been sold by their Big gorilla of a partner and it truly is a unique offering with little competition so I apply a good risked value to that future sales stream . Ofcourse the exciting part is this is over and above other revenue and it could be truly a stepped change in earnings medium term. With higher earnings will come a bigger a R and D spend and it can multiply from there