SEN - Senetas Corporation

[tech/a]

Ann

For me SEN has broken down from my technical watch list criteria
so I am no longer following it--if another signal appears then it may
find its way back into a watch list. Until then---

 

[greggles]

SEN moving north over the last couple of days after announcing that Thales, acquirer of Gemalto, will continue to be Senetas' exclusive global distributor and will continue to distribute the Senetas high-speed network encryption product portfolio, including the virtual network encryptor CV1000 under the brand SafeNet High Speed Encryptor (HSE).

Double bottom at 6c and a nice move through 8c today on solid volume.

 

[willoneau]

Looking like possible leg up.

 

[peter2]

In light of the news of the "state" based cyber attacks on Aust Gov't Depts and companies, I had a look at our cyber security companies.

SEN: Interesting large volume price spike today with no news. (TNT also).

Edit: The "cybersecurity" ETF, HACK is just another Nasdaq tech ETF.

 

[Dona Ferentes]

In light of the news of the "state" based cyber attacks on Aust Gov't Depts and companies, I had a look at our cyber security companies.

SEN: Interesting large volume price spike today with no news..

and again. up 20% today.
and TNT also. And AR9 some 15%. And WHK up 15%. And VOR some 10%. Perhaps the "relative lack of specialist investors to pick-up on the opportunities being presented" is being addressed by institutional managers just buying the sector?

 

[Dona Ferentes]

six cyber related stocks over the last 3 months
https://finfeed.com/small-caps/technology/recent-cyber-attacks-reveal-opportunities-asx-investors/

https://starinvesting.com.au/the-as...enefit-from-a-156m-cybersecurity-cash-splash/

Senetas SEN ..... (red) ........... 67%
Vortic VOR .... (green/blue) ....... 92%
Houston We Have HWH (magenta) 126%
Whitehawk WHK ... (grey) ........ 300%
Tesserent TNT ...... (blue) ........ 382%
ArchTIS AR9 ...... (green ) .......... 540%

 

[finicky]

Houston We Have (HWH) haha, what cards.
Anyone fancy any of these after such rises? Getting a faddish feel about it. Can't value them.
Thinking of taking some profit for first time today in AR9 to pay back my stake and fund MBK over subscription - cash, an under appreciated financial asset. The daily chart of AR9 makes me uncomfortable.

 

[Dona Ferentes]

Houston We Have (HWH) haha, what cards.
Anyone fancy any of these after such rises? Getting a faddish feel about it. Can't value them.
Thinking of taking some profit for first time today in AR9 to pay back my stake and fund MBK over subscription - cash, an under appreciated financial asset. The daily chart of AR9 makes me uncomfortable.

a lot of catch up being played (by others). Of course they will overshoot. Mmmm.... but if good news comes (contracts, engagement with industry and govt) there may be some more gasps. Not many insto's on these companies' registries.

And it is amazing the difference from 11 months ago:

Looking at the Australian stock market, though, you would not know that cyber security is a growth business. The ASX does host cyber security companies, but sadly, it is a desert in terms of investment success. Is this because of the technology offerings being lacking in some way, or the relative lack of specialist investors to pick up on the opportunities being presented, and give them some market support and impetus? That appears to be a big problem....

- James Dunn

 

[Dona Ferentes]

Life yet ...up 18%

SEN has entered into a supplier agreement with Verizon Australia Pty Limited, which will see Verizon distribute Senetas’s certified high-assurance encryptors as part of Verizon’s managed security offerings for its government and enterprise customers.

Verizon has provided managed network and security services to Australian government departments and businesses for over 20 years including more than 75 national and state government agencies. Notably, in 2017, Verizon opened a state-of-the-art Asia-Pacific Advanced Security Operations Centre in Canberra. It is also a panellist on the Whole-of Australian-Government Telecommunications Services Panel, providing coordinated telecommunications services.

 

[Dona Ferentes]

SEN market guidance coming through .... up 15%

• Underlying Senetas business segment revenues expected to be up over 30%
• Underlying Senetas business EBITDA expected to be up over 170%
• Consolidated group revenue (including Votiro revenue) expected to be up over 30%
• Consolidated group EBITDA (including Votiro EBITDA) expected to be up significantly on HY2020
• Statutory consolidated net profit after tax expected to be in the range of between $0.1million and $0.2 million.

but will it just be more whip-sawing ?
Earnings (LHS) and Return on Equity (RHS) hardly moving the dial, in previous period.

 

[Dona Ferentes]

or is there hope?

Votiro is a world leader in the development of cybersecurity technology to protect governments and other organisations from malware and ransomware. Ransomware is estimated by NASDAQ listed cybersecurity company, CrowdStrike to be 81% of global financial cyber crime in 2020. CrowdStrike further forecasts that the frequency and risk to government agencies and enterprises world-wide from malware and ransomware will grow significantly in the future. This risk has increased as a result of COVID-19 bringing forward the move to remote offices as government and enterprises move their applications to the cloud.

Senetas Chairman Francis Galbally commented: “The demand for software protection against such threats is now only starting to emerge and Senetas believes this growth will be considerable and will translate into an opportunity to grow a substantial annuity business.” Mr Galbally added, “the board is pleased that Votiro is achieving the expected results and growth that it targeted when we made our initial investment.”

Votiro is currently in trials with a number of large North American organisations to deploy its cyber security technology. In addition, Votiro’s Secure File Gateway has recently been selected by a Fortune 500 company to protect it from malware attacks. This customer has deployed the technology to over 50,000 users, and the revenue to Votiro from this contract is expected to be in the order of approximately USD$250,000 per annum for 3 years.

 

[Dona Ferentes]

six cyber related stocks over the last 3 months
Senetas SEN ..... (red) ........... 67%
Vortic VOR .... (green/blue) ....... 92%
Houston We Have HWH (magenta) 126%
Whitehawk WHK ... (grey) ........ 300%
Tesserent TNT ...... (blue) ........ 382%
ArchTIS AR9 ...... (green ) .......... 540%
View attachment 107220

and lets see how we are going, 6 months afterwards

WHK .... +130%
TNT ...... +48%
HWH .... + 14%
SEN ....... -6%
AR9 ....... -20% (long rest in naughty corner for 2A breach)
VOR ....... -28% (no longer a player; sold their 2 cyber firms)

 

[Go Figure]

The wide range in the Senetas Product Suite continues to service current customers and ensures continued future growth. The share price performance has been disappointing, the addition of Votiro products will bring about exposure and increase awareness of the quality of products on hand.

 

[peter2]

I've been watching SEN for over a decade now and to say the performance of their share price is disappointing is a gross understatement. It's been terrible. Companies, governments all over the world should be scrambling to ensure their networks are safe. If SEN products are so good why haven't customers been beating at the doors over the past ten years? I don't know and must assume that their products are either not good enough or not ready for commercialisation.

Their 1Gbps didn't excite the market. Their 10Gbps didn't excite the market, now they've progressed to 100Gbps. They even say they've got a quantum resistant network encryption solution.

The poor performance of the price of SEN shares is one of the many mysteries in life I'll never understand.

 

[Dona Ferentes]

I've been watching SEN for over a decade now...... Companies, governments all over the world should be scrambling to ensure their networks are safe. If SEN products are so good why haven't customers been beating at the doors over the past ten years? I don't know and must assume that their products are either not good enough or not ready for commercialisation.

the story continues (it would seem) ....

Senetas subsidiary, Votiro Cybersec Global Pty Ltd, has successfully raised US$4.6 million in a recent rights issue, with Senetas investing US$4.1million with the balance raised from Votiro’s minority shareholders and associated parties
• Proceeds from the capital raising are expected to meet Votiro’s funding requirements for sales, marketing and engineering expansion until the end of CY2021
• Senetas’s recent investment will increase its full diluted ownership of Votiro to approximately 70%
• Votiro’s revolutionary technology proactively eliminates all known and unknown threats hidden in files. Ransomware !!...
• Votiro was recently named a Gold Winner in the Content Disarm and Reconstruction (CDR) category by the 2021 Cybersecurity Excellence Awards and in the Secure File Transfer category by The Globee Awards® 17th Annual 2021 Cyber Security Global Excellence Awards®
• Outlook for the Votiro business in CY2021 continues to be very positive – the North American market remains Votiro’s key focus, and is expected to contribute over half of its CY2021 billings, with Q2 CY21 seeing the largest level of Proof of Concept (POC) trials in Votiro’s history including the commencement of a POC in one of the US Department of Defence largest Agencies.

Founded in Israel, Votiro has developed revolutionary technology recognized for its ability to proactively eliminate all known and unknown threats hidden in files. By leveraging Positive Selection® technology, Votiro’s Secure File Gateway is the only SaaS-based file security solution that ensures all files coming into an enterprise are safe from malware threats and particularly ransomware.

... a bold claim

 

[Go Figure]

Seneta’s addition of Votiro and it’s products should present a healthier looking Profit & Loss, Balance Sheet for financial year ended 2021.
Long time patient shareholders of this stock are due for some rewards, this reporting season should hopefully bring some positive outlooks. I have made Senetas my August Competition tip.

 

[Dona Ferentes]

Trading Halt for a capital raising.

Serial underperformer, to date

 

[greggles]

Substantial turnaround this month. Annual recurring revenue (ARR) of Votiro business was up 83% in FY2022 and new customer pipeline has grown by over 60% since July 2022.

Is there hope for this old dog?

 

[Dona Ferentes]

Trading Halt for a capital raising.

Serial underperformer, to date

still paddling in the shallow end. ... 1.8c
.
Key highlights:
• Senetas launches partially underwritten entitlement offer and placement to raise up to approximately A$5 million (before costs)
• Up to $3.5 million will be raised via a partially underwritten non-renounceable pro rata entitlement offer to eligible Australian and New Zealand shareholders of 1 new share at A$0.014 per share for every 4.86 shares held at the Record Date plus 1 option for every 3 new shares subscribed for. Options will have an exercise price of $0.025 per share and an expiry date of 12 months from date of issue
• Partial underwriting commitments in place for A$2.05 million of target amount, with Southbank Capital Pty Ltd (an entity associated with Senetas Chairman, Francis Galbally) and MST Financial Services Pty Limited acting as co-underwriters. MST is also acting as lead manager to the Offer
• In addition to Southbank Capital Pty Ltd’s underwriting commitment, Senetas Directors, Andrew Wilson, Kenneth J. Gillespie, Philip Schofield and Lawrence D. Hansen have all indicated that they intend to participate in the Offer by taking up their entitlements under the offer and/or sub-underwriting to Southbank Capital Pty Ltd
• Senetas has also received commitments for an additional $1.5 million by way of a placement to institutional and sophisticated investors on the same terms as the Entitlement Offer
• Funds are being raised to support the development of Votiro’s business and for general working capital.

 

[peter2]

Another capital raise of $5M @ 0.014 with options included.

This cybersecurity company still doesn't make any money. Perennial loser.