Monday, February 11, 2013

Cybersecurity a Growing Concern "Cyber-Pearl Harbor" - CTCH a Small Cap Solution

Commtouch Software (CTCH) together with its subsidiary, provides messaging, antivirus, and Web security solutions to OEM customers, enterprises, and service providers primarily in Israel, North America, Europe, and Asia. Its messaging solutions include Outbound Spam Protection solution, which enables service providers to block emails being sent from their system that contain spam, phishing, or malware; Inbound Anti-Spam solution that enables customers to block their end users’ receipt of unwanted emails; Zero-Hour Virus Outbreak Protection solution, which allows the reseller’s customers to download an enterprise gateway; and GlobalView Mail Reputation service that fights with unwanted emails at a network’s perimeter before they enter the network

Why to buy now?

Defense Secretary Leon E. Panetta warned Thursday that the United States was facing the possibility of a “cyber-Pearl Harbor” and was increasingly vulnerable to foreign computer hackers who could dismantle the nation’s power grid, transportation system, financial networks and government. Read more here 

When headlines like this hit the wires, people start searching for all sorts of small cap crappy stocks that fall under Pump & Dump schemes. But I always try to provide the best of the breed. I have found CTCH as a potential candidate to give decent returns in this situation. Company is doing great with new acquisitions and making significant progress towards their strategic evolution into a cloud-driven 'security as a service' solutions provider.

Here is what CEO had to say about coming quarters - "This multiple-year backlog includes committed revenue and major upside for the company. Based on the positive impact of these contract wins and the nature of our long-term customer agreements, these multi-year contract wins are on track to begin more significantly contributing to our revenue growth and profitability in the coming quarters.  While our third quarter financial results are not yet reflecting the positive impact of the sharp rise in new bookings due to the nature of our subscription based revenue model and the way those contracts ramp, we are making excellent progress with regards to setting the stage growth and improved profitability in 2013." This is AWESOME !!!

CTCH has 24.3 Million O/S and 17 million in float. Here are its key stats - and here it's 3rd Quarter where you can find CEO comments, click here

I am long CTCH at $3.50 with Price Target of $7.

A general Caution and Advise As I always advise in my posts, Do not chase stocks. please keep in mind that I am not a Stock Market Analyst or an Investment Adviser to count on my recommendations/alerts. As always please do your DD before investing or speculating, start with a small position, always keep your stop losses in place and emotions out. Finally thank me for your profits but do not blame me for your losses because you are the one who pulled the trigger!!!

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Who is Mr.Incredible?

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Mr.Incredible is a Momentum/Technical Breakout player who trades small/micro cap plays and who saw a 600% Growth since 2006, Yes even in this down market. I am going to post my real trades (including profits/losses) soon...As a general caution and advice Please start with a small position and always keep your stop losses in place just in case....As usual Do your DD before investing. Thank me for your profits and don't blame me for your losses because you are the one who pulled the trigger!!!