At the risk of getting slaughtered by some posters on this...

At the risk of getting slaughtered by some posters on this thread…

While I agree with most of Sicilly’s analysis, I do not believe that Senetas has lost its first mover (“blue sky”) advantage entirely.

From what I understand, Senetas still has best-of-bread products with about 6-9 mths lead on the competition and has two new products in the pipeline (the 2086 device and Fibre Channel) that will extend that lead to over 12 mths in the near future. Plus Cerberis – the x-factor.

Smuggler has suggested (in just about all of his recent posts on Senetas) that “…a capital raising looms large…” (i.e. is immanent) yet his financial analysis in respect of that supposition is not entirely air-tight.

IMO, the likelihood of a capital raising IN THE NEAR FUTURE to fund overheads in the absence of revenue is remote. I believe that the Directors would have mooted that possibility already.

That said, the Company might require additional capital to fund sales growth but (as has already been posted recently) “debt is cheaper than equity” and the Company’s book debts could be leveraged for that purpose if required.

As for Alan Stockdale’s purchase – good on him!

Its nice to see a Director putting some of his own hard-earned in this business (rather than taking it out). And NO, it would not have been funded by a Director’s loan as he has been instrumental in cleaning that practice up. His purchase will not send Senetas’ share price into the heavens but it is most definitely a positive development - irrespective of the size of that investment compared to his net worth.

I too, am anxiously awaiting guidance and, more importantly, the actual numbers that demonstrate that Senetas has turned the corner.

Please DYOR.