Best of the Week
Most Popular
1.RED ALERT: Paris Terror Attacks - What to Expect Next - STRATFOR
2.Paris Terror Attacks, Death Pangs of a Dying Religion, and Impact on BrExit EU Referendum - Nadeem_Walayat
3.Paris Terror Attacks, Islamic State Attempting to Spark Civil War in France - Nadeem_Walayat
4.Three Shocking Charts That Prove Gold Price Rally Is Coming - Sean Brodrick
5.Stock Market Nifty-Fifty Becomes Fab-Five; Return of the 'Four Horseman' - Mike_Shedlock
6.Africa Population Explosion - Why Europe's Migrant Crisis is Going to Get A Lot Worse - Video - Nadeem_Walayat
7.Gold Mining Stocks May Be The Buy Of The Century - Jeff_Berwick
8.Grandmaster Putin Beats Uncle Sam at His Own Game - Mike_Whitney
9.BRICS? No, CRISIS - Raymond_Matison
10.UK Housing Market Affordability, House Prices Momentum and Trend Forecast - Nadeem_Walayat
Last 5 days
UK Immigration Crisis Hits New Extreme of 336k Net Migration, up 32% on 2014 - 27th Nov 15
Vauxhall Zafira B Fire Danger Recall - What to Do Video - 26th Nov 15
Triggers In US Dollar Collapse - 26th Nov 15
Apple Stock is a 10-Year Short - Bear Market Environment - 26th Nov 15
U.S. Federal Reserve Rate Hike - 26th Nov 15
George Osborne's War on Buy to Let Sector Trending Towards Doomsday - 26th Nov 15
Will Turkey Drag NATO into War With Russia in Syria? - 25th Nov 15
George Osborne’s Autumn Statement and Spending Review Full Text - 25th Nov 15
Will Fresh QE From ECB Boost Gold? - 25th Nov 15
Sheffield, Yorkshire and Humberside House Prices Forecast 2016-2018 - 25th Nov 15
Investors Watch Out For The Auto Industry… - 24th Nov 15
BEA Revises 3rd Quarter 2015 US GDP Economic Growth Upward to 2.07% - 24th Nov 15
Stock Market Supports Are Being Broken - 24th Nov 15
Is Gold Price on the Verge of a Breakout? - 24th Nov 15
Fed’s Tarullo: U.S. Interest Rates Liftoff Should Wait for Signs of Inflation - 24th Nov 15
Silver Price, COT, US Dollar Updates and More - 24th Nov 15
UK Regional House Prices Analysis - Video - 23rd Nov 15
Crude Oil Swinging For The Fences - A 20 to 1 Option Play - 23rd Nov 15
US Dollar, CRB, Oil, Gas, Copper and Gold - The Chartology of Deflation - 23rd Nov 15
UK Regional House Prices, Cheapest and Most Expensive Property Markets - 23rd Nov 15
Stock Market Rally Losing Momentum? - 23rd Nov 15
Will Gold Price Drop Below $1000 Soon? - 23rd Nov 15
Gold and Silver Sector Big Green Light and Low Risk Entry Setup... - 23rd Nov 15
Limits to Economic Growth - Challenge and Choices - 22nd Nov 15
Long Dollar Trade and Current Copper Price Below Cost of Production - 22nd Nov 15
UK Housing Market House Prices Affordability Crisis - Video - 21st Nov 15
The Fed Has Set the Stage for a Stock Market Crash - 21st Nov 15
Stock Market Primary V Wave Continues - 21st Nov 15
Gold And Silver - Value Of Knowing The Trend - 21st Nov 15
UK Footsie Bulls Set To Foot The Bill - 21st Nov 15
UK Housing Market Affordability, House Prices Momentum and Trend Forecast - 21st Nov 15
GDX Gold Miners’ Strong Q3 Results - 20th Nov 15
End of Schengen, Stock Market’s Technical Strength Grows - 20th Nov 15
Justice for All and The Curious Case of Zambia - 20th Nov 15
Paris, Sharm el-Sheikh, and the Resurrection of Old Europe - 20th Nov 15
Silver Prices and The Management of Perception - 20th Nov 15
Stock Market Nifty-Fifty Becomes Fab-Five; Return of the 'Four Horseman' - 20th Nov 15
Waiting for Goldot Again - 20th Nov 15
Michael Curran Goes Down-Market Shopping for Gold Stock Winners - 20th Nov 15
Why Isn’t This Incredibly Bearish Bond Market Development Making the News? - 19th Nov 15
SPX Appears to have Stopped its Rally - 19th Nov 15
The Great Fall Of China Started At Least 4 Years Ago - 19th Nov 15
Using Elliott Waves: As Simple As A-B-C - 19th Nov 15
Has Deflation Been Ddefeated? - 19th Nov 15
Dow Jones Stock Market Index is Not Going to Crash - 19th Nov 15

Free Instant Analysis

Free Instant Technical Analysis

Market Oracle FREE Newsletter

Reasons to Get Excited About Japanese Stocks

How You Can Profit From the New "Code Wars"

Companies / Tech Stocks Jun 06, 2012 - 10:35 AM GMT

By: Money_Morning


Best Financial Markets Analysis ArticleMichael A. Robinson writes: Iran loves to rattle its saber-especially when it comes to Israel.

But the country that would like to wipe Israel off the map now finds itself the target of a very different kind of war.

On the frontlines of cyberspace, Iran has become the victim of another massive attack on its computer networks.

In the wake of the Stuxnet attack, the Flame virus unleashed on Iran is one of the worst pieces of malware ever to hit cyberspace.

The Flame virus is not just nasty, it's also very smart.

It was written to spy on a user's infected system and steal data. This includes documents, recorded conversations and even keystrokes.

Then it throws open a back door that allows hackers to tweak the code giving Flame even more ways to wreak havoc.

Clearly, news of the Flame attack comes at a key moment.

Rising tensions between the U.S. and Iran over its nuclear program have left the region under the threat of a wider conventional war.

In the background is the Israeli wild card. Israel has taken key political actions to ensure it's ready if it needs to attack Iran.

Flame's success is that it helps to keep a lid on this brewing powder keg.

In short, it is war by other means-even though Israel and the U.S. both deny they are behind the Flame attacks.

Yet, there's no question the Flame episode is part a major global trend that has put cybersecurity stocks back in the public eye.

And in a moment I'll show you four ways to invest in this growing field-pegged at about $65 billion.

But first, I want to make sure you have the correct context...

The Growing Menace in Cyberspace
The truth is that the U.S. is all too often on the receiving end of cyberattacks.

Hackers from around the world try to steal or destroy sensitive defense and financial data hundreds of times a day.

Not only that, the Pentagon maintains an active Cyber Command. The unit trains around the clock to keep the nation prepared to defend against hacks.

And for good reason...

There's just no question that in what I call the Era of Radical Change, a "Cyber Cold War" is a fact of life.

You see, rogue nations and freelance hackers can easily afford to create and launch weapons of mass computer destruction.

Compared to the cost of a fighter jet or battleship, writing computer code is practically free.

In the case of Iran, this is the second major cyberattack in the past two years. In 2010, the Stuxnet worm disabled machinery for several months that Iran needs for its nuclear program.

But Flame puts Stuxnet to shame. After all, the file itself is 20 times larger and far more complex.

It can turn a computer into a wireless vacuum cleaner. It sucks up names and phone numbers from nearby devices and transfers them back to the attacker's server.

Though Iran is not the only target, Flame has mostly focused on the Middle East. Other countries fending off Flame include Egypt, Israel, Lebanon, Saudi Arabia, Sudan and Syria.

In all, the Flame virus has attacked nearly 600 systems.

Four Ways to Invest in Cybersecurity Stocks
Clearly, news like this means investors need to keep an eye on cybersecurity stocks.

Several have gotten slammed in the market's recent retreat but offer good long-term opportunities.

Take the case of Fortinet, Inc. (Nasdaq: FTNT).

Trading at about $20, the stock is off more than 20% in the past month. And the price may get even better because tech stocks have come under pressure of late.

With a market cap of $3.2 billion, it has a 14% profit margin and earns 19% on equity. It has $428 million in cash and no debt.

Fast-growing Sourcefire, Inc. (Nasdaq: FIRE) also has gotten slammed.

It's down more than 12% in the past month. Yet FIRE has $150 million in cash and no debt. However, Sourcefire can't match Fortinet's solid margins.

With a market cap of about $1.5 billion, Sourcefire returns just 3% on equity. But the company does have 2,500 clients in 180 countries and boasts 41 pending or actual patents.

Shares of Check Point Software Technologies Ltd. (Nasdaq: CHKP) also got caught in the May rout, ending the month off by about 13%. But the balance sheet looks great.

Check Point has a market cap of about $10.4 billion. Selling at about $50, it trades at just 14 times forward earnings. It has an operating profit margin of more than 50 percent with $1.4 billion in cash and no debt.

Then there is small cap KEYW Holding Corp. (Nasdaq: KEYW). It trades at just $9. Though it's off slightly in the past 30 days, KEYW has beaten its larger rivals over the past three months.

For the quarter, KEYW returned 29% to shareholders compared with 11.5% for FIRE and declines of 15% for CHKP and 26% for FTNT.

The point is that we have millions of computers around the world connected to either the Web or private networks. For hackers, these computer networks are a target-rich landscape.

That means cybersecurity will remain an active field for investors for at least the next several years.

And to help you stay abreast these growing cyber threats and other cutting-edge high tech, I recently launched the Era of Radical Change.

It is a free newsletter that will show you how to profit from the most important trends reshaping the world around us.

I'm referring to things like:

1.A mini robot that charges your cell phone just by hovering over it.
2.How a new app can turn your smart phone into a bomb detector and send an alert to the police.
3.And an exotic new material that's the thickness of a single atom. Someday, it will give us TV screens that are slimmer than a sheet of paper.

So, if you want to find a way to profit from the next generation of tech breakthroughs, the Era of Radical Change is a great place to start.

And you can't beat the price. You can get it free by clicking here.

Source :

Money Morning/The Money Map Report

©2011 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email:

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2015 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Biggest Debt Bomb in History