How Cybersecurity Penny Stocks Grow While Keeping Clients Safe

Several factors are bringing the necessity of cybersecurity and information security back to the forefront of the minds of consumers and business leaders. Growing threats of cyberwarfare, the growing landscape of Web 3.0, and cyber terrorism all come to mind. Not to mention the Internet of Things (IoT) growing in our households and offices.

We are already seeing cybersecurity firms increase their focus on areas such as:

·        Secure Communications

·        Biometric technology

·        Digital identity security

·        Regulatory and best practices compliance

With cybersecurity becoming a point of discussion in nearly every area of our lives, it’s no wonder firms are finding more and more ways to serve the growing market. But large firms can’t do all the lifting and would leave us open to greater risk if they tried. Luckily, smaller firms, like Toronto-based GlobeX Data, Ltd. (OTCMKTS: SWISF) are picking up the slack.

As firms large and small seek to attract additional capital from shareholders, it’s the smaller firms who may be the most attractive to investors. Whether the promise of new intellectual property, the opportunity for a large payout in the event of an acquisition, or not being as susceptible to market trends that affect other stock symbols or indexes.

Each of the three firms mentioned in this article specializes in various areas of the cybersecurity spectrum and is positioning themselves to be seen as strong buys for investors.

GlobeX Data, LTD. (OTCMKTS: SWISF) Keeps Firms Communications Safe

Perhaps the easiest way in for potential threats is through external and even internal communications. Email, instant messaging, and even seemingly benign activities like file sharing and data storage are coming under daily attacks. Ransomware, phishing, data mining—all of these threats can be mitigated with the right partner. Globex Data Group (OTCMKTS: SWISF) is finding success by keeping its clients’ communications secure.

In the case of SWISF, its Swiss Hosted Secure Data Management and Communications solutions protects enterprise-wide email services, data storage, and file sharing. By routing all server activity and 100% end-to-end encryption through Switzerland, it can fight against address book mining, data mining communications, and provides for self-destructing chats.

GlobeX’s (OTCMKTS: SWISF) Sekur brand encrypted email and instant messaging transfers data “using a multi-layered 2048-bit encrypted tunnel using our proprietary HeliX technology” without the need for a VPN. This cuts down the workload for clients’ IT departments or managed IT partners.

GlobeX (OTCMKTS: SWISF) currently trades for $0.22 per share and has seen 100% growth in its stock price in the less than three years.

CynergisTek Inc (NYSE: CTEK) Does the Heavy Lifting

Firms realizing all these improvements to and advances in cybersecurity may be out of their competence or areas of expertise will find it comforting that companies like CynergisTek Inc (NYSE: CTEK) provide managed IT services. The Austin, Texas-based operation provides short-term service agreements as well as longer term, three-year managed IT services. Focusing in cybersecurity, privacy, compliance, and IT auditing, CTEK reduces the risks of its clients, and improves their defenses, and protects their data.

Most recently, CTEK reported a 16% quarter-to-quarter growth in revenue and a 4% increase in gross margins in that same period. They increased presold revenue by 15% in 2021, in large part due to the addition of 43 new clients, stemming from a 23% increase in bookings in the second half of the year over the first half.

CynergisTek (NYSE: CTEK) currently trades for $1.31 per share and was up 2.29% after hours on Friday.

BIO-Key International (NASDAQ: BKYI)

Fresh on the heels of its acquisition of Swivel Secure Europe—an identity and access management company providing services across the European, African, and Asian continents—US company BIO Key International (NASDAQ: BKYI) saw a 2022 high of $2.82 in its stock price before settling at a strong $2.50 per share at the end of last week.

The identity-as-a-service firm serves commercial, government, and education clients by providing “biometric technology, enterprise-ready identity access management solutions, and software solutions.” As identity verification and access management becomes increasingly difficult to manage, but exceedingly important to have in an organization, firms are finding the solutions provided by BKYI not just useful, but necessary.

Michael Depasquale, CEO of BIO-Key International, commented on the recent acquisition of Swivel Secure Europe by saying  “Swivel Secure significantly strengthens BIO-key’s presence and potential reach across Europe, the Middle East and Africa during an unprecedented period of cybersecurity threats and attacks…We are excited to bring our award-winning, cost-effective and easy to deploy portfolio of IAM and identity-bound biometric solutions to serve the needs of current and future customers across EMEA markets.”

A few other cybersecurity plays to watch include, Guardforce AI (NASDAQ: GFAI), IronNet Inc. (NASDAQ: IRNT), and SuperCom Ltd. (NASDAQ: SPCB).

Each of these three cybersecurity firms are providing solutions to growing threats facing government, business, and even households. As they continue their success, investors would be wise to at least add them to their watchlist so as to keep an eye on the potential for returns in a field that will surely continue to grow.