Forum Topics Cyber Security - Secular Tailwind Driving Investing Opportunities
CanadianAussie
4 years ago

CPT appears to be another one with exposure to cybersec.

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Rapstar
4 years ago

With the PMs announceent this morning highlighting the increasing threat Cyber attachs pose,  what investing ideas are there theat will benefit from this unfortunate trend?  We havelimited opportunities on the Oz stock market (Cloudfare, Crowdstrike, Zscaler, and Okta are great US stock ideas), but what Australian companies have the potential to benefit from increasing investment in Cyber Security?  Here are a few thoughts:

Tesserent Ltd (TNT) - Cyber security services provider. 

Vortiv (VOR) - Cyber security services provider. (Disc. I hold) 

Other companies that may benefit are:

Dropsuite (DSE) - Email backup / data back up (Disc. I hold).  

AVA Risk Group - Communications infrastructure protection (Disc. I hold) 

Any other ideas?   

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Bear77
4 years ago

Macquarie Telecom (MAQ) have a large cybersecurity division within their Macquarie Government division. See here: https://www.ausbiz.com.au/media/data-bunker-build?videoId=2011

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Chagsy
4 years ago

HACK ETF is my pick. Done well so far. Excess returns are delivered as capital returns in addition to dividends.

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CanadianAussie
4 years ago

Hi Rapstar. Someone else just had a forum topic on this as well. I think there will be huge tailwinds in cybersec and would love to gain more exposure to this area as well. While the Aus gov just announced a hack, I can assure you Nation states are hacking each other ALL the time. If anyone is interested, have a look into the CMMC regulations the U.S. is rolling out over the next 5 years. As for other companies/investment strategies: WHK - online marketplace for cybersec HACK (ETF) I'm keeping a close eye on WHK but they haven't done enough for me to invest at this stage. I may just end up going with the HACK ETF.

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Rapstar
4 years ago

Hi padi, My largest holding is Crowdstrike, so yes, I am investing directly into the US. Unbelievably good business - Market leadership, strong network effect, scalable, high margin, and expanding platform & offering. Options are limited in Oz. I hold Vortiv, but don't have a high conviction in the business. It is essentially a professional services business, which are capital light, and can be quite profitable at this scale. However, there is significant key man risk, and are not easily scalable. AVA Risk is another I hold. They have had a good year, and look to have a promising future. However, they have had a checkered past, that I think will take a while for the market to get over. The new CEO seems to have brought a renewed focus to the business and put an end to the political / corporate BS that was going on.. Still learning about them and am yet to build a strong conviction in the business.

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