With Data433 Risk Mitigations, Inc. (OTC Pink: ATDS) set up for a breakout 2021, its price decline last week appears way overdone. Granted, most companies in the penny-stock universe were battered, with double-digit percentage losses across the board wreaking havoc as the appetite for risk became less voracious. Still, the 54% decline in ATDS’s stock price may have taken things too far. In fact, after finishing an extraordinary and impactful February, it wouldn’t be surprising to see the ATDS share price not only recoup its losses but surge higher. Here’s why the bulls may take over:
First, Data443 Risk Mitigation, Inc. has built itself into a one-stop-shop that provides Data Privacy Solutions for All Things Data Security™. And not only are they great at what they do, but they also target massive market opportunities supported by business, individual, and government demand. Moreover, an extensive and diversified portfolio of products and services positions ATDS to capitalize on multiple market segments. Better still, because of their broad focus, they can build tailored software and services solutions to enable secure data transfer across local devices, a network, the cloud, and/or databases. Many mid-cap competitors can’t make the same claim.
Best of all, they are making their assets work for them. In its Q3 2020, Data433 reported record-setting revenues. Since then, the company has eliminated its convertible and toxic debt, commenced filings to uplist to the NASDAQ markets, and made an acquisition in February that adds more depth to its product arsenal. Thus, at less than two-cents a share to start the week, ATDS presents a compelling opportunity.
Acquisition Strategy Builds Product Depth
Acquisitions remain a part of the Data433 strategy. The great news is that ATDS likes to make deals that can be immediately accretive to revenues and earnings. That looks to be true for its most recent acquisition. In February, it acquired all rights to the data archiving platform, ArcMail, a pioneer and leader in the enterprise information and email archiving market. That asset is expected to provide immediate value and leverage ArcMail expertise to offer customers an extensive array of cost-effective, easy-to-use archiving solutions. The ArcMail acquisition also adds to an impressive line of other products.
Consider ArcMail another valuable part of a growing products and services portfolio. While it clearly owns its own inherent value, it also strengthens Data433’s growing suite of products and services, including ARALOC™, its market-leading, secure, cloud-based platform for the management, protection, and distribution of digital content to the desktop and mobile devices. And there is plenty more.
Other products that fill out its impressive portfolio are DATAEXPRESS®, the leading data transport, transformation, and delivery product trusted by leading financial organizations worldwide. Its ClassiDocs® is an award-winning data classification and governance technology, which supports CCPA, LGPD, and GDPR compliance. And its ClassiDocs™ for Blockchain provides an active implementation for the Ripple XRP token that protects transactions from inadvertent disclosure and data leaks. These products diversify opportunities and support a competitive presence in high-dollar markets. And there’s more.
Data433 also markets Data443™ Global Privacy Manager™, a privacy compliance and consumer loss mitigation platform. They also offer Resilient Access™, enabling fine-grained access controls across numerous platforms for internal client systems and commercial, public cloud platforms like Salesforce, Google G Suite, and Microsoft OneDrive. Want more proof that this company is undervalued?
Well, considering they are also targeting the booming Software-as-a-Service (SaaS) market with FileFacets®, finding tangible reasons to justify a substantially higher valuation isn’t difficult. FileFacets®, for its contribution, is a platform that performs sophisticated data discovery and content search within corporate networks, servers, content management systems, email, desktops, and laptops. It’s a product that most people have and need; they just don’t know it.
And while the product and services portfolio is valuable, the company’s performance is not lacking either. That’s the value kicker.
Concluding that their product and services lineup is worthy of significantly more attention and value, it still leaves a question- what about their financial performance?…the answer: it’s impressive.
In fact, Data433 posted record-setting revenues in its third-quarter, eliminated $10 million in derivative liabilities, and reduced expenses by 35% in that same period. Those actions each enhance value. And while those accomplishments could fuel a rally on their own, ATDS did even more.
Also, in Q3, Data433 increased equity by $12.5 million, paid down roughly $500,000 in acquisition debt, and recorded its highest quarterly bookings ever. Thus, it can be said that Data433 is firing on all cylinders. And the better news is that each deal, and each quarter of record revenues, puts the company in a stronger position to capitalize on and maximize its near-term opportunities.
Therefore, as well as Data433 is performing now, investors suggest that the best is yet to come. Moreover, most agree that with the digital and data security market booming, Data433 is in the right market, is doing the right things, and is there at the right time.
Nevertheless, investors demand performance, and ATDS is delivering there as well. As noted, its record revenues, the slashing of its debt, and its highest booking rate ever last quarter are standout achievements. Still, looking forward to Q4, ATDS is expected to do even better. And if they can double-down on consecutive quarterly records, it may fuel the momentum needed to make 2021 its best year ever.
Disclaimers: Hawk Point Media is responsible for the production and distribution of this content. Hawk Point Media is not operated by a licensed broker, a dealer, or a registered investment adviser. It should be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Hawk Point Media was not compensated to research, prepare, or syndicate this content. Hawk Point Media has no working relationship with the company featured. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The information made available by Hawk Point Media is not intended to be, nor does it constitute, investment advice or recommendations. The contributors may buy and sell securities before and after any particular article, report and publication. In no event shall Hawk Point Media be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or made available by Hawk Point Media, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information in this video, article, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. Hawk Point Mediastrongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D.
The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results.Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled.
Company Name: Hawk Point Media
Contact Person: Jake Ellis
City: Miami Beach
Country: United States