sen- green alert >40c

Been watching Senetas for a while through its peak to 40c and back to 25c in the last few days. Seems to be consolidating now for a push forward. Yesterday it went back through the 30c but came back today, should have another go over the next few days. Putting aside the trading pattern and looking at the fundamentals I like what I see.

Sen has very workable technolgy and note that it has international demand so potential for earnings is very high. I look at sen about a year ago and now looking at it very impressed what the company has achieved over this period of time.

A lot of positives with Sen. Prtofit bottom for this year of $7m, and reading the announcement this seems conservative. Usually management would be keen to hype the numbers but I can read caution in the announcement and probably the management is understandably understating the revenue and profit, quietly confident that they may get more contracts for this current year, so my expectation probably end result higher than projected.

So at current and potential PE, price should be higher. I feel that it should be in the 40cs in the short term and with more contracts potential of going higher.

Sen will also be paying a dividend. How many companies under 30c paying dividends which is another reason why sen should not be at 30c.

They already have contracts that are paying revenue and with a good sales reference point should be able to easily secure more contracts locally and internationally. Remember share price hike is about assessing the potential to increase revenue in the short, medium and long term, assessing the PE and dividends payment. Sen has great potential with new contracts and with proven technology, especially in the current unsafe world, their revenue could increase exponentially, and even at estimation of share price of just over 40c could be an underestimation for the medium term but in short term is probably reasobale.

Research yourself and see if you agree.

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