Words out

Gemalto is acquiring Safenet, the exclusive distributer of Senatas encryption hardware products. Coat tails strategy not unlike NTC. Gemalto will be the no. 1 company in the world now in data security offering security at the core and security at the edge. They don't not have a competing supplier to Senatas and I believe this is extremely positive for SEN. I have them on a run rate of $5M/$6M NPAT for 2015 before this transaction if they can sustain the momentum in the sales that Safe Net have been delivering. SEN has world leading certification for their products that take years to achieve. Snapshot - $5M cash in bank No debt. World market by 2017 $470M Sales in 2014 $12M i.e under 3% of world market by 2017 Carried forward losses $100M - no tax !! New CEO, Andrew, 2 years ago has done what he promised and more. Great story - easy to understand, massive interest and growth in data security Competitive advantage - Leader in Layer 2 technology plus world leading certification for products. 7 year churn sub 10 cents after high of 80 cents in 2006 - love this type of stock.