Disclosure: Financial Investigative Media Limited, which is not owned by Tom Winnifrith but by a trust for his dependants, owns shares in companies mentioned in this article. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
You would not have thought that Falanx (FLX) had, yesterday, served up some cracking news but it has. The shares rose just a fraction to 6.5p-7p. The market is missing what is going on for now, here but the import will sink in. We are well ahead on our 4.5p offer share tip but there is plenty more to go for.
The first news is that Falanx has launched a new cyber threat detection platform MidGard. This proprietary tech detects, alerts and provides analysts with the ability to investigate and intervene in cyber security threats as they occur on client's networks and systems. MidGARD is wholly owned by Falanx and is currently live on its first client network and the value of this pilot contract is approximately £50,000 per annum.
Going forward MidGARD will eliminate the costs to the Company of licensing an off the shelf product, resulting in an expected operational cost reduction of approximately £500,000 a year when fully rolled out. That has to be good news. Expect a stream of contract wins going forward which will see real operational gearing and bottom line benefits for Falanx.
It gets better....
The company states:
Falanx Cyber Defence has well established distribution channels through which MidGARD will now be supplied, creating exposure to over 2000 potential new clients in UK alone, through;
· CDW Corporation: The $9bn NASDAQ technology solutions provider
· NASSTAR Plc : The AIM listed, managed IT services provider
· SNX Systems: One of the UK's leading Financial Services IT solutions providers
Distribution is the key here and Falanx looks incredibly well placed to see a massive ramp up in orders at Cyber over the coming year. That shoukld drive the company into a position of material profitability at a PLC level something that is just not reflected in a market cap of £7.86 million.
The stance is a very strong hold indeed. We still expect to be telling you to bank profits at well over 8p before long.
This article first appeared on HotStockRockets with the shares 10% lower than today. But fear not there are TWO more new hot share tips on the way within the next 3 working days and you can access both and all of our archive for just £5, HERE
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