Network brake ins this year at Target, HomeDepot, CitiBank and Sony have highlighted intense need for more effective security walls. Sony hired FireEye (FEYE) today which gained 9% on the initial news although over the last year Check Point (CHKP) and Palo Alto Networks (PANW) have gained considerably more.
Out of work programmers in countries like Russia have considerable expertise and due to their economy have a lot more time on their hands. They can make a lot more money designing viruses and finding weak points in network security than they can in legitimate programming jobs. For that matter even in countries with healthy markets for engineers the money is enticing. The fact that government are now actively trying to break into networks or install viruses ups the ante.
Obviously there is going to be a lot of money pouring into the technology. For average investors though, understanding which companies have a technological or management advantage is tough. Hopefully we can collectively gather information about these companies, and get some advice from investors with more technical knowledge about these businesses and how they work.
Current stats so we can compare over then coming years:
FEYE 32.96 P/E = NA Mkt Cap 4.99B Milpitas, CA
CHKP 78.54 P/E = 22.87 Mkt Cap 14.71B Tel Aviv, Israel
PANW 124.66 P/E = NA Mkt Cap 10.01B Santa Clara, CA
CYBR 42.18 P/E = 221 Mkt Cap 365.19M Petach Tikva, Israel
QLYS 39.98 P/E = 307.54 Mkt Cap 1.33B Redwood City, CA Cloud Security
VDSI 29.17 P/E = 32.82 Mkt Cap 1.15B Oakbrook Terrace, IL (OTC NasdaqCM) Authentication
IMPV 52.19 P/E= NA Mkt Cap 1.39B Redwood Shores, CA
HACK 27.35 PureFunds ISE Cyber Security ETF
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