What are the biggest challenges that the global economy faces over the next few decades? War? Terrorism? Climate change?
Add to that list cybercrime.
Cybercrime causes trillions of dollars of damage each year to the global economy.
In the next 48-months cyber-crime is expected to rise to $6 trillion per year in economic damage,
double the amount from 2015.
To put that in context, the U.S. real estate industry is the largest segment of the U.S. economy, at $2.2 trillion in revenue. In other words, cyber criminals will be destroying three times more value than the revenue of the entire U.S. real estate industry.
And they will do it every single year.
No wonder Ginni Rometty, IBM Corp.’s Chairman, President and CEO, told an industry conference “cybercrime…is the greatest threat to every profession, every industry, every company in the world.”
Companies large and small have taken note – cybersecurity spending is expected to top $1 trillion over the next few years.…
But companies face a technological problem: the standard software packages sold as “security” are no longer sufficient at keeping billions of dollars of sensitive corporate information protected. Today’s cyber criminals are highly sophisticated and ruthless, necessitating a much more robust cyber defense.
We’re in the early stages of a cyber war promising to be one of the most expensive wars in history.
The average company today requires an impenetrable solution.
Only one cybersecurity company – public or private - has military-grade cyber security software and is headed up by a management team with experience in working in the intelligence community, Wall Street and corporate America.
The thing is, this small company is almost unheard of outside elite cyber-security circles. However, that is about to change.
Hill Top Security Inc. could be about to see its business take off. Hill Top has a military-grade, cyber security platform for small-to-medium-sized businesses (SMB), comprising blockchain event validation, cyber tagging, incident response and rapid restoration. It is currently in the process of being acquired by Big Wind Capital (CSE: BWC ; OTC:BGGWF ).
#1 The threats from cyber security are already massive, and are growing at a frightening rate
Everyone is becoming more familiar with cybercrime, especially as the frequency and severity of high-profile incidents have proliferated.
Recently, the WannaCry virus attacked Microsoft Windows operating systems in May 2017, a global attack that ensnared hundreds of thousands of computers around the world, demanding $90 million ransom in bitcoin.
And the costs can be more than money. The UK’s National Health Service became one of the most prominent victims of the global WannaCry ransomware attack, which forced the health system to shut down hospitals, divert ambulances and rendered patient records unavailable for a period of time.
The truth is we are seeing a bull market in cyber crime. There are an estimated 1.5 million cyber-attacks each year, or about an average of 4,000 every single day, 170 every hour, or almost three every minute. That means, by the time you finish reading this article, a handful of cyber-attacks will have occurred. The average cost of a cyber breach in the U.S. stood at about $7 million in 2016.
Cybercrime is also growing at a terrifying rate. According to the 2016 Global State of Information Security Survey, the number of detected incidents surged by 38 percent last year.
By 2021, the economic damage from cybercrime could reach $6 trillion. In other words, the cost of cybercrime will be bigger than the value of the entire global trade for major illegal drugs.
#2 The business world is waking up to that fact cybercrime is an existential threat to small companies
Companies now realize they have no choice but to budget for cyber security. About 60 percent of small and medium-sized businesses are forced to shut down within six months of a cyber-attack, according to the National Cyber Security Alliance.
As the cyber threat mushrooms, spending on defense is set to rise exponentially and will exceed $1 trillion from 2017 to 2021, according to Cybersecurity Ventures. The cybersecurity market will grow by 12 to 15 percent each year through 2021.
#3 Hill Top has military-grade software
Because the threat is becoming more sophisticated, the solutions will need to become more complex as well. Most cybersecurity software is simplistic and reactive, meaning that cybersecurity vendors only update their software with solutions after an attack happens. They are band aids, not cures.
It is world’s first company sophisticated enough to meet the U.S. Department of Defense’s rigorous FIPS-FIAR standard for financial transactions. The software was originally developed for the intelligence community to detect financial anomylies, but has been transformed into a platform called Vauban, a highly sophisticated cloud-based product that uses artificial intelligence and machine learning to constantly improve. It gives companies a chance to detect problems, risk score issues when they are found and block attacks before they occur.
Hill Top’s Vauban software is a unique, military-grade solution that has Blockchain event validation for secure cryptographic validation. Hill Top also has the only platform that provides full and immediate operational recovery after a security breach. The company’s cyber security package is probably in a class by itself.
#4 Management team has diverse and successful background
The Hill Top (CSE: BWC; OTC:BGGWF) management team is stocked with cyber-security and software development, experts who have worked throughout the Department of Defense, the Department of Treasury, Silicon Valley and Wall Street.
They have pioneered software that meets DoD’s FIPS-FIAR standard for financial transactions. Hill Top’s CEO, Corby Marshall, is a West Point graduate and former U.S. Army officer.
The CTO is Neil Wright, also a West Point grad, who went to Wall Street and then to UPS as the company’s Chief Architect, where he developed software for package reconciliation and anomyly detection.
Tom Gilmore, the COO, is a veteran of the Marine Corps and has extensive experience working with the intelligence community. He also started and sold a small defense systems integrator that made the Inc. 500 list of fastest growing private companies.
In short, the team is experienced and has a track record of success across multiple sectors, including the military, the intelligence community, Wall Street, Corporate America and even startup ventures.
#5 Hill Top has serious upside – small but growing quickly
Hill Top Security (CSE: BWC; OTC:BGGWF) already has government contracts in place for several million dollars. Because it is one of the only companies that has software compliant with DoD’s FIPS-FIAR standard, it hopes to be at the front of the line for future government contracts.
But the real money will be made in the private sector, where Hill Top is seeking clients among small and medium-sized enterprises that need to acquire more sophisticated cyber-security technology. The company has cash in the bank and, because the Vauban software is ready to go, there are fewer costs to scaling up.
That means Hill Top could have juicy margins for every customer it signs up, in the range of a staggering 80 percent.
More importantly, its upside is enormous. Hill Top is still small, and few investors know about it. The company expects its commercial revenue to eclipse the value of its government contracts in the next 12 months. There are over 27 million small and medium-sized businesses, meaning the market for this kind of cybersecurity could exceed $2.2 billion by 2020. If Hill Top captures only a small slice of that, it could be worth many multiples of its current valuation.
The Bottom Line
Cybercrime is one of the most challenging threats of our time…which means companies offering solutions have the potential to be among the most lucrative. With companies and governments set to spend trillions on cyber defense in the coming years, there is a lot of money to be made.
But Hill Top/Big Wind Capital (CSE: BWC; OTC:BGGWF) has a cyber security platform that outpaces its competitors. The software has artificial intelligence that allows it to constantly learn and stay ahead of the curve. It detects threats and prioritizes responses. And it allows for immediate recovery after an attack. The company is small, and the upside is enormous. Hill Top’s extensive military and intelligence DNA give it a leg up in the rapidly evolving cyber-security market. With government contracts in hand and a commercial line that is growing quickly, investors in the know will see a massive opportunity.
Other players to watch in the cybersecurity space:
Avigilon (TSX:AVO): Avigilon develops, manufactures, markets and sells HD and megapixel network-based video surveillance systems, video analytics and access to control equipment. We expect strong continuous growth in the video analytics business and a company such as Avigilon is well positioned to capture market share in the Canadian markets.
As a key player in the digital security marketplace, it is clear to see why Avigilon made the list. With its technology continuing to move forward, investors can count in Avigilon to provide lasting value.
Sandvine Corporation (TSX:SVC): Ontario is seeing some vibrant cybersecurity growth, as well. Sandvine corp. is engaged in the development and marketing of network policy control situations for high-speed fixed and mobile Internet service providers. Products include Business Intelligence, Revenue Generation, Traffic Optimization and Network Security.
The company’s high-quality products and solidified place in the stock market has helped Sandvine company has grown 52% year-to-date and we expect strong growth throughout 2017.
Pivot Technology Solutions Inc. (TSX:PTG): Pivot focuses on the strategy to acquire and integrate technology solution providers, primarily in North America. It sells and supports integrated computer hardware, software and networking products for business database, network and network security systems.
Pivot has seen explosive growth so far this year and we expect the current cyber threats to add to the already strong sentiment in cyber security stocks, making the company one sure to draw investor interest.
Absolute Software Corporation (TSX:ABT): This Vancouver-based company offers endpoint security and data risk-management solutions, and this year has seen a share price jump of over 27%. Revenues are also up, and it looks like it’s on a path of securing strong new customers. The pipeline looks great, and forecasts for next year have been increased.
Absolute has seen a strong 21% stock growth year to date and is expected to see strong growth as the cyber security market grows at a rampant pace. With strong management and an innovative team, Absolute Software is drawing growing investor attention.
Shopify Inc (TSX:SHOP) (NYSE:SHOP) is a Canadian e-commerce company with more than 500,000 companies rely on Shopify’s real-time e-commerce, including Tesla, Budweiser and Red Bull, among many others. Shopify manages their e-commerce machines, and its stock is now up to over $106 right now, with a market cap of over $10 billion. CNET called the application “clean, simple, and easy-to-use" in a review of the Shopify platform.
Within any e-commerce platform, security is an absolutely necessity – and Shopify has it.
The company’s online presence and sheer reach make it an ideal buy for investors. Shopify makes purchasing goods and services easy for anyone – and in a time where convenience is king, Shopify surely has staying power.
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This news release contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this release include: that cybersecurity and information security industries will continue to grow as expected; that Hill Top Security Inc. (“Hill Top”) could be about to see its business take off; that Hill Top hopes to be at the front of the line for future government contracts; that Hill Top could have juicy margins from new customers; that Hill Top expects its commercial revenue to eclipse the value of its government contracts in the next 12 months; that, Hill Top captures a small slice of the cybersecurity market, its valuation will increase to many multiples of its current valuation. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Risks that could change or prevent these statements from coming to fruition include: that cybersecurity and information security industries will not grow as quickly as expected or that such industries will decline in size; that Hill Top will not be at the front of the line for future government contracts; that Hill Top’s margins from new customers will not be as high as expected; that Hill Top’s commercial revenues will not eclipse the value of its government contracts in the next 12 months; that, even if Hill Top captures a small slice of the cybersecurity market, its valuation does not increase to multiples of its current valuation. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The forward-looking statements contained in this news release reflect the current expectations, assumptions and/or beliefs of the writer based on information currently available to the writer. In connection with the forward-looking statements contained in this news release, the writer has made assumptions about: expected growth in the cybersecurity and information security industries; that Hill Top will be at the front of the line for future government contracts; that Hill Top’s margins from new customers will be as high as expected; that Hill Top’s commercial revenues will eclipse the value of its government contracts in the next 12 months; that, if Hill Top captures a small slice of the cybersecurity market, its valuation will increase to multiples of its current valuation. The writer has also assumed that no significant events will occur outside of Hill Top’s normal course of business. Although the writer believes that the assumptions inherent in the forward-looking statements are reasonable, the forward-looking statements are not a guarantee of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein. The forward-looking information contained herein is given as of the date hereof and the writer assumes no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.
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