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Dhaka Tribune

CISO Global (NASDAQ: CISO) up 67% - has a corner been turned here?

The accounts look pretty ricketty to be honest but will revenue grow its way out of this?

Update : 16 Nov 2023, 01:54 PM

CISO Global (NASDAQ: CISO) stock is up 67%. The rise in CISO stock comes from the published results. These show a pretty fragile capital condition if truth be told. Take out the goodwill addition from takeovers and there’s not a whole lot there as a capital base. On the other hand revenue is growing pretty strongly and as long as creditors and shareholders stick with it there’s a possibility - and we’d note possibility, not certainty - that it can trade out of this.

The question then becomes, well, might it? The business line is: “CISO Global Inc. operates as a cybersecurity and compliance company in the United States, Chile, and internationally. Its cybersecurity services include security managed, cybersecurity consulting, compliance auditing, vulnerability assessment, penetration testing, disaster recovery, data backup, and cybersecurity training services. The company was formerly known as Cerberus Cyber Sentinel Corporation”. Seems like a good business line to be in, given all those corporate computing hijacks going on and so on.

On the other hand the CISO stock price is down 95% over the year so perhaps it’s not doing all that well? Revenues are, as we’ve said, growing reasonably enough. So, might they grow to where they actually cover costs?

CISO 

CISO Global stock price from Google Finance

We do have something to guide us here, the results from competitors in much the same markets. Darktrace reported earlier in the year that corporate managements were agreed that cybersecurity was terribly important. They were definitely going to do something real soon now - but wouldn’t actually place those orders. Shearwater reported exactly the same problem at about the same time. Both have also said that those problems are largely resolved - managements are willing to open the wallets and make real orders again.

Sadly this doesn’t really solve our problem for us. For we now don't know whether the increase in revenues is just something in line with the market or something to do with how management is dealing with its problems. The jury is still out on that shall we say.

What is obvious is that CISO needs to significantly grow its revenue in order to be able to cover those central costs. Whether it can do so, well, a better marketplace will help but will that be enough? 

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