LOL mydog…I'm with you BUT I thought I would get slaughtered on...

LOL mydog…
I'm with you BUT I thought I would get slaughtered on my "earnings outlook" PE. Your's is a tad more bullish to say the least.
Forget the PE ratio. Lots of potential yes but the downside risks (to earnings) remain.
MOMENTUM IS THE KEY
If Senetas hits its FY forecast with solid revenue growth (relative to the first half) then the PE ratio may be a little more bullish in six months time.
I too am optimistic, particularly in light of the new products coming on line, BUT I expect Senetas (like many other stocks at the moment) will be punished severely if it does not hit or even exceed its forecast.

WHAT ARE THE RESELLERS DOING?
Management tells us that they have resellers in 27 or so countries. If we take off Senetas' consulting income and revenues attributable to Safenet from its first half results there would not be much product income to attribute to other resellers....
We are told that the sales pipeline is strong so how close are some of these resellers to completing sales?
One would expect that a relatively small (additional) contribution from all of Senetas' resellers should see a substantial uplift in revenues.
The question is when will that eventuate (if at all)?

Please DYOR.