SenSen Networks: The Orange Flag Fades
A positive announcement weakens my primary concern and supports the growth thesis, with management commentary adding color.
Disclaimer: I own shares of SenSen Networks Limited and stand to benefit if they rise in price. I may decide to purchase or sell shares at any time without prior notice. Do your own research and size positions appropriately if you invest. Nothing here is meant to be understood as investment or financial advice. AI tools assist my research and writing process, enhancing analytical efficiency and clarity.
Introduction
Following my last article on SenSen Networks (SNS.AX), the share price has been volatile, moving from $0.04 as of my last article to a high of $0.095 to a recent $0.07 on high trading volume. This is not unexpected for a microcap story at a major inflection point.
The central question of my last article was one of financial quality. I raised a significant "orange flag": the combination of a huge spike in receivables and a simultaneous, counterintuitive reduction in the allowance for credit losses, all in the context of the former CFO’s departure in June. I noted that the bull case required these receivables to be from large, credit-worthy government clients that were simply slow to pay…
In this brief follow-up article, I discuss how a recent company announcement and additional management commentary impact my thesis. I also offer an alternative valuation lens that suggests the market is still overlooking a key part of the story.
For reference, my recent article was:
