Three of the Top Cybersecurity Small Cap Stocks to Consider

February 28, 2019, By smallpicksfirm,

A few keystrokes are all it takes.

All of a sudden, your most private information is in the hands of criminals.

Your most personal information, banking details, social security numbers, your children’s information… all at risk.  Yet, many of us aren’t prepared for the next one.

What’s terrifying is that our own government isn’t prepared.

In fact, our digital over-dependence means that our risk is greater than ever before with new attacks surfacing all the time.  And just in case you think hackers can’t get to you behind your locked, alarmed doors, they’re already inside your home computer.

Every 39 seconds, there’s another cyberattack.

On top of that, more than 3.8 million records have been stolen every day since 2013, according to Cybersecurity Ventures.  So, there’s a good possibility you’ve been hit without even knowing – with your most private data revealed to criminals.

It’s cost U.S. businesses billions of dollars.  Consumers are having their most private data exposed for the world to see.  Credit cards, social security numbers, bank account information, even your child’s information in the hands of strangers.

Arguably, the threat is very real and expensive to fight.

At the end of 2018, cybercrimes committed globally cost up to. $1 trillion.

Damages related to cyber crimes are expected to hit $6 trillion a year by 2021.  Yet, despite the scale and potential harm of such attacks, many companies and government agencies still are not prepared.

Only 38% of global organizations are prepared for a cyberattack.

Up to 65% haven’t devoted the time or resources to prepare.

And what makes it worse is 54% of companies have been attacked – and still aren’t ready for another one down the road.

The potential for issues is there… and it’s bad.

So how do you trade it?  Here are some of the top ways.

Cyber Trade No. 1 – SuperCom (SPCB)

SuperCom is an Israeli company that provides digital identity, Internet of Things and connectivity, and cyber security products and solutions to governments, and private and public organizations worldwide.  It also serves healthcare and home care, security and safety, community public safety, law enforcement, electronic monitoring, livestock monitoring, and building and access automation industries.

It also provides Safend’s Encryption Suite that protects the organization’s sensitive data; and designs solutions for carrier wi-fi, enterprise connectivity, smart city, smart hospitality, connected campuses, and connected events.

Cyber Trade No. 2 – Carbonite Inc. (CARB)

Carbonite, Inc. provides backup, disaster recovery, high availability, and workload migration technology solutions in the United States. Its solutions include Carbonite Safe that offers annual and multi-year cloud backup plans for individuals or businesses; and Carbonite Endpoint Protection that protects the data, which resides on an organization’s computers, laptops, tablets, and smartphones. The company’s solutions also comprise Carbonite Hybrid Backup, which protects a customer’s data footprint on-premise and in the cloud and enables recovery while version history stored in the cloud safeguards against disaster; Carbonite Cloud Backup that automatically backs up data to the cloud and keeps physical and virtual systems protected with point-in-time restore; and Carbonite Onsite Backup, a flexible data protection solution, which backs up and replicates data securely across a customer’s own private network.

Considering that data protection has become an explosive niche, CARB should do quite well moving forward.  Fundamentals look solid here, too.  Revenues were up 30% in the last quarter.  Gross margins are turning higher along with operating margins and net profits.

Cyber Trade No. 3 – Pure Funds Security ETF (HACK)

We can also look at the Pure Funds Security ETF (HACK), which jumped from a 2016 low of $19 to nearly $40.  It’s sure to draw more interest especially as threats worsen.  The ETF has holdings in Fortinet Inc., Check Point Software, CyberArk Software, Imperva Inc. FireEye, Proofpoint and dozens more.

The beauty of holding an ETF is the diversification and cheaper cost.

If we were to buy shares of each stock this ETF holds, it wouldn’t cost us thousands of dollars. But at just $40 a share, you have exposure to most of the heavyweights.

The $1.52 billion HACK holds 47 stocks and its top 10 holdings combine for about 45% of its weight. HACK is a global ETF with exposure to seven countries, but U.S. stocks account for more than 76% of the fund’s weight.

Leave a Reply

Your email address will not be published. Required fields are marked *