July 14, 2020 -- InvestorsHub NewsWire -- via Seeking Alpha
-- About: Data443 Risk Mitigation, Inc. (ATDS), Includes: ADBE, CHKP, CRWD, FB, FTNT
- New Data Privacy laws such as the EU
GDPR and California CCPA are
fueling unprecedented demand for Cyber Security and COVID-19 driven
remote work is further fueling demand
- Open Source software model is “free” and has been enormous
growth driver in countless successful software enterprises such as
YouTube, RHAT, FB, TWTR, GOOG, NFLX, MSFT, ADBE, ORCL
- Data443 Risk Mitigation, Inc., (OTCPK:ATDS) “Open Source”
data protection is being met with very strong demand
- Over 30,000 web sites with a reach to millions of end users,
sales increased from zero in 2018 to over $1.4 million in 2019, and
estimated 2020 sales projected at over $5 million. First quarter
2020 was $477,877 versus $142,971 for same period 2019
- Recently signed Miami Dolphins with
potential for entire NFL as well as other major sports leagues
- ZOOM now offers DATA443 to millions of users
- ATDS shares have been EXTREMELY OVERSOLD down from $1.90 in
last 12 months by convertible note holders whose only goal was to
liquidate at any price and with no regard to share price. The
company has now struck a deal to halt the
aggressive selling
- BioResearchAlert finds ATDS shares undiscovered and undervalued
with current market cap of only $1.7 million and share price of one
cent. Current market comps point to current ATDS share value over
$.40 per share and significantly higher as current growth rate
continues to accelerate
Summary
Countless examples point to the enormous success of the “open
source” model for software apps where apps offered to users for
free have the potential to mushroom the number of users in a short
time and create value from additional offerings such as premium
upgrades or ad-free services. Examples are numerous and include
well-known names such as YouTube, RHAT, FB, TWTR, GOOG, NFLX, MSFT,
ADBE, ORCL. Each has their own unique product, but “open source” or
“free” apps is one of the primary drivers of huge growth.
Data443 Risk Mitigation (OTCPK: ATDS) is the first to
combine the growing need for new Data Privacy with free “open
source” solutions to attract a large number of users. Underlying
value to investors and to potential suitors increases as the number
of users grows, even if they are free. WordPress powers over
1,000,000,000 websites globally and operates its own app store like
Apple and Google. In 2016, 1.5 Billion plugins were downloaded from
the WordPress.org repository alone.
Data443 has seen active users of its GDPR Framework for
WordPress go from less than 5,000 to over 30,000 in less than 1
year! The Company expects to continue to expand its open source
overrings significantly this year.
The following February 23, 2020 article explains the undervalued
share price and the current market comps indicating substantially
higher valuations with the potential for unusually large gains:
COVID-19, TOUGH NEW CYBER SECURITY LAWS, STRONG GROWTH
AND MARKET COMPS POINT TO ATDS OVER 400X POTENTIAL
GAINS
- ATDS is a leading Cyber Security provider with over 30,000
company users.
- Executed letter of intent to acquire the assets and customer
base of Internet Software Sciences with over 100,000 installations
and over 1 million end users worldwide from corporations,
educational institutions, non-profits and government agencies
- With the number of COVID-19 remote workers soaring, with B2B
customers eager to meet new legal requirements for effective Cyber
Security solutions and with the unrealistic low market cap of
$140,000, ATDS has become a serious buyout candidate and at the
same time a very attractive investment.
- ATDS shares have been oversold and pounded to almost giveaway
prices by toxic convertible debt buyers who have no regard for
value and who only liquidate at any price as quickly as possible
they can move on to their next deal. Shares have traded as high as
$17 in 2018 on news of their powerful Cyber Security
solutions.
- Effective July 1, 2020, new Consumer Protection laws exposing
companies to draconian penalties will drive already mushrooming
cybersecurity sales to even greater record growth.
- After recent share consolidation followed by retirement of 2
million shares, the number of ATDS shares plummeted from 9.5
billion down to under 153 million.
- Market comps point to well over $.40 per share based on
projected $5 million 2020 revenues.
- CEO Jason Remillard recently committed to buying almost $4
million convertible debt that will keep those shares off
market.
Summary
In early 2018, Data 443 (ATDS:
OTC) shares were trading at levels well above today's when
they announced their first
acquisition of the award winning “Classidocs” that met many of the
requirements of the then upcoming GDPR Cyber Security requirements
in Europe. Shortly thereafter, the market realized the opportunity
and saw ATDS shares run to over $17.00 per share in just a few
short months.
As is frequently the case, market excitement got ahead of itself
and shares gradually drifted back down in normal profit taking.
Selling also picked up pace from the convertible investors who
helped finance the company but sold their shares so they could be
paid back. Combined, these selling pressures created this
outstanding buying opportunity today.
Market comparisons based on actual sales demonstrate that ATDS
shares are exceptionally undervalued and when share prices catch up
with the market through investors becoming aware of this disparity,
the price has the potential to increase over 6,000% from current
levels.
With the recent increase in sales and projected strong growth
from new laws requiring the services of ATDS, and with the drastic
reduction in the number of shares reduced from 9.5 billion to about
153 million, it appears that the stage is now set for ATDS to begin
a new run to higher prices that have the potential to challenge and
even set new highs for 2020 and 2021.
Mushrooming Need For Cyber Security
Data breaches are
becoming more frequent, bigger, and increasingly expensive, and the
risk of jaw-dropping penalties and settlements for data breaches
just got even higher after the European Union’s General Data
Protection Regulation (GDPR) on May 25, 2018. In late June, 2018,
California passed a consumer privacy act, AB
375, that could have more repercussions on U.S. companies than the
European Union’s General Data Protection
Regulation (GDPR) that went into effect this past
spring.
If a company covered under the new bill is not in compliance
with California’s CCPA they will have 30 days to comply once
regulators notify them of a violation. If the issue isn't resolved,
there's a fine of up to $750 per record and considering that the
number of customers in most data banks is very large and frequently
in the millions, this kind of penalty could be enough to drive many
companies into bankruptcy.
Clearly, the risk is too big to chance and the need for Cyber
Security is increasing dramatically. A few recent examples of how
steep the fines can be are:
According to a report from
IBM, the average cost of a data breach has increased to US$ 3.92
million, which is a 1.6 percent increase in costs in 2018 and a 12
percent rise over the last five years.
Cyber-attacks, data thefts, weak security, mistakes, and
cover-ups have cost these companies a huge fortune.
1. British Airways
The UK’s data protection watchdog ICO (Information Commissioner
Office) fined British
Airways on July 08, 2019, with £183.39 million (around US$ 230
million) after the airline failed to protect its customers’ data.
The fine was related to a data breach that occurred in September
2018, exposing around 500,000 customers’ personal information.
The ICO said its investigation found the breach compromised
customer details, including login, payment card, name, address, and
travel booking information which is collected after being diverted
to a fraudulent website. The data breach, which began in June 2018,
occurred due to the poor security measures to protect customer
information, ICO stated.
2. Yahoo
In one of the biggest class-action lawsuit settlements in the
United States’ history, Yahoo Inc. has agreed to pay US$ 117.5 million over a
series of data breaches that affected its users between 2012 and
2016. The affected users will likely get US$ 100 in compensation or
two years of credit monitoring services for free.
Yahoo urged the Settlement Class Members to claim for the
reimbursement. In case users already hold credit monitoring
services, they can opt for cash payment, which is less than US$ 100
or more (up to US$ 358) per user, depending on how many users are
claiming for the settlement, Yahoo said in a statement.
According to Yahoo, anyone who had a Yahoo account between
January 1, 2012, and December 31, 2016, and is a resident of the
United States or Israel is eligible for the settlement.
3. Uber
In 2016, taxi aggregator Uber had 600,000 drivers and 57 million
user accounts breached. Instead of reporting the issue, the company
paid the perpetrators, Glover and Mereacre, US$ 100,000 in ransom
to keep the hack a secret. These actions cost the company deeply.
Uber was fined US$ 148 million in 2018 for violation of state data
breach notification laws.
In October 2019, the two hackers pleaded guilty for their
extortion scheme to steal sensitive information of 57 million Uber
passengers and drivers. According to the statement from the Federal
Court, California, the hackers admitted stealing personal
information from the ride-hailing service provider that was stored
on Amazon Web Services from October 2016 to January 2017 and then
demanded a ransom.
4. Marriott International
In July 2019, popular hospitality group Marriott International
was charged with
£99,200,396 (around US$ 123,705,870) fine by ICO for the data
breach reported in 2018. The ICO stated that Marriott failed to
protect its customers’ information, thus violating the GDPR
regulations.
Marriott faced a massive data breach affecting up to 500 million
guests last year. Hackers extracted people’s personal data as well
as a loyalty program, payment, and reservation information. That’s
not all, encrypted credit card data of 100 million customers was
also stolen.
5. Facebook
Facebook is set to pay the largest
fine imposed on a technology company by the Federal
Trade Commission (FTC). On July 24, 2019, the social media giant
was slapped with a massive US$ 5 billion fine for allegedly
violating privacy practices and mishandling user data during the
infamous Cambridge Analytica scandal and other privacy breaches.
The FTC ordered Facebook to adopt new policies for protecting
users’ data and expand these policies across Instagram and
WhatsApp.
Facebook has also agreed to pay £500,000 (around US$ 645,000)
penalty imposed by ICO for failing to safeguard the users’ data
gathered by political data firm Cambridge Analytica.
According to the settlement deal, Facebook has agreed to drop
its legal appeal against the penalty. The ICO stated that Facebook
can retain some documents that the ICO disclosed during the appeal
process to use for its own investigation into issues around
Cambridge Analytica.
6. Equifax
In July this year, the Federal Trade Commission (FTC) and
Consumer Financial Protection Bureau fined Equifax around US$ 700
million following a massive data breach in 2017 that leaked a
massive amount of information of more than 143 million people in
the U.S. alone.
According to the official reports, the proposed penalty could be
between US$ 650 and US$ 700 million. It’s said that the final
amount could vary depending on how many people file claims and
their expected compensation.
On September 7, 2017, the Atlanta-based consumer credit
reporting agency disclosed that its databases had been breached
between May and June 2017, and hackers had gained access to company
data that potentially compromised sensitive information for 143
million American consumers, including Social Security numbers,
credit card numbers, and driver’s license numbers. Equifax
discovered the breach on July 29, 2017. It waited until after the
close of trading nearly six weeks later to disclose the breach to
consumers and Equifax’s investors, after hackers exfiltrated data
for 76 days.
Goldman Small Cap Research published
bullish report on
ATDS.
Enviable Corporate Success Has Been Overlooked
"ATDS offers what is the longest running DRM platform for
mobile. Moreover, in its open source solution, ATDS boasts over
30,000 users---this number rivals and exceeds some of the largest
and leading companies in the space. Clearly, many are ripe for
conversion to paying customers and thousands are trusted
relationships---a highly valuable and hidden asset. New
cloud-based, multi-functional and integrated offerings are slated
to be introduced following a series of customer tests. This new
integrated platform could generate $1500/mo/per customer seeking
comprehensive data and privacy solutions," commented Goldman.
ATDS Represents an M&A Prospect
Goldman concludes, "Revenue could approach $1.8M for 2019 and
possibly $5M in 2020-the first full year that its three
acquisitions will generate revenue and organic growth is
demonstrated. This excludes potential 2H20 M&A. Based on these
forecasts, ATDS is undervalued relative to current prices and its
peer group on a pre-revenue basis. Furthermore, once additional
M&A is executed, these figures will likely have to be revised
upward. In the meantime, ATDS could be viewed as an attractive
takeover candidate. It has a large open- source user base, broad
customer base, and low relative industry valuation. An acquirer
could buy ATDS and grab tech and market share for a fraction of the
industry's valuations. Thus, opportunistic investors may view
prices represent an attractive entry point."
Current Market Comps – Price to Sales Ratio Based on
Last 12 Month Sales
Splunk - SPLK 6.75 to 1
CheckPoint – CHKP 8 to 1
CrowdStrike – CRWD 25.5 to 1
OKTA – OKTA 25 to 1
Fortinet – FTNT 8 to 1
Zscaler – ZS 23 to 1
ProofPoint – PFPT 6.3 to 1
Average Price to sales Ratio = 11.8
Current ATDS market cap is $1,530,000 with share price of $.01.
Based on reported 2019 revenues of $1.4 million and projected 2020
sales of $5 million, with current Price to Sales ratio of 11.8 to
1, ATDS shares are projected to trade at $.40 in 2020.
Business Highlights for the Third Quarter of
2019:
ATDS Expands Sales
During Q1-2020 Data443 has onboarded 9 new sales and marketing
professionals and has a continuous growing inbound funnel of
professional and capable staff team members going through the
application and assessment process at the company. “During hiring,
we look for many things – in addition to the basics of course -
attitude, the ability to respond to and execute change and quickly
cycle between product lines are major considerations for anyone
joining our team. Our methodology is being applied across all of
our product lines, so the expectations and requirements apply to
those as well.”, added Mr. Bruni.
The recently announced Global Privacy Manager™ by
Data443 product is built on the award winning data classification
platform ClassiDocs™ and Data443’s WordPress GDPR Framework, which is
currently powering more than 30,000 businesses worldwide for the
EU’s GDPR Privacy Law will be rolled out immediately. The combined
platform automatically searches the data residing in cloud
application, databases, servers, and endpoints used by businesses
to discover, classify and map customer data.
“The new sales and marketing methodology are already garnering
results for the organization and we are excited to expand the
program to the other product lines. This approach enables us to be
more responsive and dynamic to changing market and customer demands
– while managing costs and investment in direct to our financial
models. This highly algorithmic approach is more appropriate for
our business and today’s market conditions – giving us more
accurate and timely information on the return of our efforts. These
provide the foundation for our next evolution of the product line
into consumer-facing capabilities which will be marketed directly
and with partners to be announced at a later time.” said
Remillard.
Fresh Comp
One quick look at a recent $210 million
funding for $2.7 billion Cyber Security company called
OneTrust further supports ATDA undervaluation and 2 tables
illustrate the advantages held by ATDS over OneTrust.
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Cloud-Based Data Storage, Protection, and Workflow Automation
Platform
Personal and Corporate Privacy and Compliance Scanner
for Group Video and WebinarsExposes Data443 Brand
and Product Line to Millions of New Potential Clients
RESEARCH TRIANGLE PARK, NORTH CAROLINA, July 14, 2020 (GLOBE
NEWSWIRE) -- Data443 Risk Mitigation, Inc. (“Data443” or the
“Company”) (OTCPK:
ATDS), a leading data security and privacy software company,
today released to the general public its latest advance in its
cloud Global Privacy
Manager product line – Data443 Chat History
Scanner - powered
by the Company’s award winning ClassiDocs™.
What it is:
- Effortlessly scan your recorded chat history logs for privacy,
financial, security and other sensitive information types
- Test different languages and sensitive data types against
recordings to detect anomalies
- Detect policy breaches by your staff or other vendors on
webinars or group meetings
- Remove recordings, webinars or other content that violates
policy
- Available for free to all subscribers; premium version to
follow at reasonable cost
Why it matters:
- Online meeting platforms have exploded in popularity during the
recent pandemic, with significant room to grow.
- Roughly two-thirds of U.S. workers who have been working from
home prefer to continue working remotely as much as possible even
when pandemic restrictions lift, according to a recent Gallup
poll.1
- Exposes Data443 brand and all other products to millions of end
users and customers
- Leading charge in the burgeoning online data storage and
management space, providing the Company with significant market
penetration
1 https://www.wsj.com/articles/seven-rules-of-zoom-meeting-etiquette-from-the-pros-11594551601?mod=searchresults&page=1&pos=2
Management Commentary:
Jason Remillard, CEO of Data443, commented, “Today’s
announcement is another key accomplishment for Data443, and
continues the development of our Global Privacy Manager product
segment that includes a plethora of products that ensure corporate
compliance and personal privacy online – for both consumers and
businesses alike. This effort has taken months of work by our
dedicated engineering staff, securing certification from the
vendor, and enabling us to deliver another world-first product to
the marketplace.”
“The combination of compliance requirements, massive data
collection and storage of both consumer and commercial information,
without the ability to scan, parse and understand this data in a
massively growing virtual environment, continues to be a
significant risk for organizations of any size. By creating the
Data443 Chat History Scanner, we saw a “blue ocean” opportunity in
creating a simple, quick and easy way to meet these challenges,
while aligning Data443 with the global leader in online video
communications.
“Being on the first page of security and compliance products in
the App Store is another notch in our belt as we continue to
deliver products for a wide range of SaaS information providers on
many platforms. Being distributed and available on multiple
providers is part of our new approach to expand our business and
reach new potential customers,” concluded Mr. Remillard
Conclusion
TDA – Data 443 is ranked in the top 15 U.S. based Cyber Security
companies by Black Book Market Research and provides services to
big name clients like Hewlett Packard, Ripple, MicroSoft, Twitter,
Facebook and Linkedin. Sales started at zero and were $1.4 million
for 2019 and projected to hit $5 million in 2020. With an
aggressive and smart acquisition program adding to sales and with
strong organic internal sales growth, ATDS is expected to achieve
strong sales growth and become a takeover target for the cash rich,
sales hungry, software giants. There are about 153 million shares
outstanding and the potential exists for prices at many multiples
of today’s price and possibly even record highs in 2021. Displaying
a strong vote of confidence, CEO, Jason Remillard, stepped up
and negotiated a deal with
convertible debt holders amounting to around $4 million that has
now been extended between 6 months and one year and thereby
eliminates those potential shares from ever hitting the market.
2019 revenues were driven by sales for 6 months from only one
product and only 1 quarter of the second product, while 2020 sales
are being driven by the ENTIRE YEAR OF SALES FROM ALL 3 PRODUCTS
PLUS ACQUISITIONS.
Goldman
Research recently rated ATDS as a Speculative Buy with a
price target of $3.65.
With current market Sales to Price ratio of 11.8 to 1, if ATDS
executes as they are currently doing and delivers 2020 sales of $5
million, it is reasonable to expect ATDS share price to achieve
$.40 in 2020 and as growth accelerates share price has the
potential to rapidly increase over $1.00.
Legal Disclaimer:
Except for the historical information presented herein, matters
discussed in this release contain forward-looking statements that
are subject to certain risks and uncertainties that could cause
actual results to differ materially from any future results,
performance or achievements expressed or implied by such
statements. The Information contains forward-looking statements,
i.e. statements or discussions that constitute predictions,
expectations, beliefs, plans, estimates, or projections as
indicated by such words as ''expects,'' ''will,'' ''anticipates,''
and ''estimates''; therefore, you should proceed with extreme
caution in relying upon such statements and conduct a full
investigation of the Information and the Profiled Issuer as well as
any such forward-looking statements.
Original Publication: https://seekingalpha.com/instablog/21922151-bioresearch-alert/5472520-why-1-cent-atds-shares-down-from-1_90-are-expected-to-soar-zoom-jumps-on-board
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