By Malcolm Stacey | Thursday 18 May 2017
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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.
Hello Share Graters. I’m always trying to find companies you may not be aware of. It’s a way of widening the scope of this largely critical website. Today I commend to your further investigation a company called Defenx (DFX).
Now it doesn’t get off to a great start for me, as I appreciate brand names which are easy to say and remember. And I find this monicker hard to say, even if I am pronouncing it properly, which I doubt.
Never mind, it is a company which serves a pressing need at the moment - cyber security. It keeps safe from scallywags the stuff on mobile phones, computers and the like.
Last month, it announced a fifth year of improving profits. Operating profit was up by 88%. It's also announced a link-up with a big Italian firm of the same ilk, called BV-Tech.
We all know the horror story of the NHS computers that were hacked last week. This has put a fire under the share price of a lot of computer security firms. If these attacks become more common, as everyone expects, then companies like Defenx should prosper.
A dynamic share analytical company called VectorVest drew this lot to my attention. Its team uses a lot of City jargon which I have trouble with, but they do say that the share is currently undervalued. Ok, there are quite a few firms in the same game, and I suppose only the best will float to the top. How do we know that Defenx (why does that odd name remind me of a Ronnie Barker sketch?) is better than most?
Well, its customer base is growing and spending more, and the profit growth is as impressive as its progressing share price, so mayhap it’s worth a look.
And now it’s time to attack the Punter’s Return.
Never miss a story.
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