SEN has lost its status as a Consistently Healthy Star Stock following the announcement of a profit downgrade to its first half results for the 2006 financial year. The company has announced that due to a delay in the release of its new Ethernet suite of encryptors and delays in some orders which will now take place in the second half of the year, SEN expects its 2006 first half results to be below its previous interim results. Despite this the company said that it would still pay an interim dividend out of those earnings. As a result of the downgrade it is now unlikely that SEN will be able to maintain its Star Stock status when it releases its upcoming interim results and the company has to come out of our Star Stock selection.
Despite this announcement the company remains confident of its forecasts for the 2006 full year of earnings of more than $11 million will be achieved. SEN has also reiterated its target for an increase in total world wide sales from last year's $28 million per annum to $250 million per annum within the next three years.
Stock doctor is a purely technical program. It boots companies out when they dont meet their criteria. That however is not an indicator to sell. Many stocks have lost their status as a star stock and still grown strongly in share price. Its just like a warning. I am a stock doctor client and i am accumulating.
SEN Price at posting:
0.0¢ Sentiment: None Disclosure: Held
