Could These 7 Tech Security Stocks Benefit From Fears of Cyberwar?

Michael Teague |

china internet baidu sina youku censorshipLast month, the New York Times’ David Sanger authored an article about “Unit 61398”, the moniker for the Chinese People’s Liberation Army’s cyber-warfare division. The report emerged amidst what a wave of recent incidents in which Chinese hackers are alleged to have broken in to the networks of various American institutions, private and governmental, as well as media organizations.

Despite China’s ministry of defense having repeatedly denied these accusations, everyone from former Secretary of State Hilary Clinton from Google (GOOG) chairman Eric Schmidt, along with a smattering of security professionals and now American media companies like the New York Times, the Wall Street Journal, and even the social networking site Twitter, seems to believe to be absolutely certain of Chinese involvement in recent incidents.

The following seven companies are tech security stocks, of which six belong to small-cap companies. Looking at the performance for the past month (roughly since the publication of the NYT article) and comparing it to the same figure year-to-date and for the past six months (if necessary), should give at least a preliminary idea as to whether these companies might capitalize off of fears of cyber war between China and the U.S.



Brady Corp. (BRC) – The Milwaukee, Wisconsin company provides a variety of computer security services.  With a market cap of $1.72 billion and shares currently selling at $33.55, the company’s rate of return for the last month is actually down 3.39 percent, whereas its year-to-date and 6 month rates of return are 0.99 and 21.34 percent respectively.

Sourcefire Inc. (FIRE) – The Columbia, Maryland company has a market cap of $1.67 billion with a share price of $54.51.  The company’s rate of return over the last month, 27.96 percent,is higher than its YTD rate of 15.44 percent, and well above the rate for the past 6 months (3.99 percent).

Intralinks Holdings Inc. (IL) – The Manhattan, New York-based company has a market cap of $315.95 million, with shares trading at $5.73.  The company’s return rate for the last month is 11.44 percent in the negative, while the YTD rate is -7.13 percent.  Over the past six months, IL’s return rate has been 4.56 percent.

The KEYW Holding Corp. (KEYW) – The Baltimore, Maryland company, with a market cap of $487.13 million, is currently selling shares at $13.93.  Its return rate over the last month is 8.32 percent, YTD is 9.77 percent, and for the past half year, 23.82 percent.

ManTech International Corp. (MANT) – The Washington D.C.-based company has a market cap of $906 million, with shares trading at $24.46.  Its rates of return over the past month and YTD are in the negative by 0.85 percent and 5.71 percent respectively.  Over the past half-year, however, the rate is 14.46 percent in the positive.

Symantec Corp (SYMC) – The Mountain View, CA, company, one of the better-known names in the business, has a market cap of $16.51 billion with shares selling at $23.96.  Its rate of return for the last 6 months is 34.99 percent, while YTD is 27.31 percent, and the last month’s rate is 10.06 percent.

Vasco Data Security International (VDSI) – The Chicago, Illinois company has a market cap of $335.53 million, with shares trading at $8.61.  Its rate of return over the past 6 months is negative by 9.27 percent, but positive for both YTD, 5.51 percent, and for the last month, 6.3 percent.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
IL IntraLinks Holdings Inc. $0.001 par value n/a n/a n/a 0 Trade
NVC:CA Neovasc Inc. n/a n/a n/a n/a
SYMC Symantec Corporation 28.92 -0.30 -1.03 5,834,805 Trade
MANT ManTech International Corporation 49.91 -0.04 -0.08 89,532 Trade
VDSI VASCO Data Security International Inc. 14.10 0.10 0.71 279,894 Trade
BRC Brady Corporation 38.90 -0.35 -0.89 178,272 Trade
KEYW The KEYW Holding Corporation 5.29 0.16 3.12 414,183 Trade

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