Shares in Senetas Corporation Limited (ASX: SEN) jumped 40% higher in July, spurred on by a mid-month announcement that it expects full year profits of between $5.7 million and $6 million, a 140% lift over the prior year.
Adding to the excitement, an article in The Australian Financial Review named Senetas as one of the seven best ASX tech stocks you've never heard of.
Senetas provides high-speed data encryption hardware to businesses and governments. The hardware sits at the edge of the customer network and protects information transmitted from the private network to the wide area network, or the WAN. In other words, Senetas recognises the need for data to travel securely between sites, rather than simply protecting data while it is at rest.
Senetas share are up 400% over the past year.
Trading at 20 cents, Senetas shares currently trade on a P/E of around 33 times earnings. Even at that premium rating, and even after the stunning past gains in the Senetas share price, if business momentum persists, Senetas shares could still end up being cheap today. I'm in for the ride.
