With Data433 Risk Mitigations, Inc. (OTC Pink: ATDS) set up for a breakout 2021, its price decline last week appears way overdone. Granted, most companies in the penny-stock universe were battered, with double-digit percentage losses across the board wreaking havoc as the appetite for risk became less voracious. Still, the 54% decline in ATDS's stock price may have taken things too far. In fact, after finishing an extraordinary and impactful February, it wouldn't be surprising to see the ATDS share price not only recoup its losses but surge higher. Here's why the bulls may take over:
First, Data443 Risk Mitigation, Inc. has built itself into a one-stop-shop that provides Data Privacy Solutions for All Things Data Security™. And not only are they great at what they do, but they also target massive market opportunities supported by business, individual, and government demand. Moreover, an extensive and diversified portfolio of products and services positions ATDS to capitalize on multiple market segments. Better still, because of their broad focus, they can build tailored software and services solutions to enable secure data transfer across local devices, a network, the cloud, and/or databases. Many mid-cap competitors can't make the same claim.
Best of all, they are making their assets work for them. In its Q3 2020, Data433 reported record-setting revenues. Since then, the company has eliminated its convertible and toxic debt, commenced filings to uplist to the NASDAQ markets, and made an acquisition in February that adds more depth to its product arsenal. Thus, at less than two-cents a share to start the week, ATDS presents a compelling opportunity.
Acquisition Strategy Builds Product Depth
Acquisitions remain a part of the Data433 strategy. The great news is that ATDS likes to make deals that can be immediately accretive to revenues and earnings. That looks to be true for its most recent acquisition. In February, it acquired all rights to the data archiving platform, ArcMail, a pioneer and leader in the enterprise information and email archiving market. That asset is expected to provide immediate value and leverage ArcMail expertise to offer customers an extensive array of cost-effective, easy-to-use archiving solutions. The ArcMail acquisition also adds to an impressive line of other products.
Consider ArcMail another valuable part of a growing products and services portfolio. While it clearly owns its own inherent value, it also strengthens Data433's growing suite of products and services, including ARALOC™, its market-leading, secure, cloud-based platform for the management, protection, and distribution of digital content to the desktop and mobile devices. And there is plenty more.
Other products that fill out its impressive portfolio are DATAEXPRESS®, the leading data transport, transformation, and delivery product trusted by leading financial organizations worldwide. Its ClassiDocs® is an award-winning data classification and governance technology, which supports CCPA, LGPD, and GDPR compliance. And its ClassiDocs™ for Blockchain provides an active implementation for the Ripple XRP token that protects transactions from inadvertent disclosure and data leaks. These products diversify opportunities and support a competitive presence in high-dollar markets. And there's more.
Data433 also markets Data443™ Global Privacy Manager™, a privacy compliance and consumer loss mitigation platform. They also offer Resilient Access™, enabling fine-grained access controls across numerous platforms for internal client systems and commercial, public cloud platforms like Salesforce, Google G Suite, and Microsoft OneDrive. Want more proof that this company is undervalued?
Well, considering they are also targeting the booming Software-as-a-Service (SaaS) market with FileFacets®, finding tangible reasons to justify a substantially higher valuation isn't difficult. FileFacets®, for its contribution, is a platform that performs sophisticated data discovery and content search within corporate networks, servers, content management systems, email, desktops, and laptops. It's a product that most people have and need; they just don't know it.
And while the product and services portfolio is valuable, the company's performance is not lacking either. That's the value kicker.
Record-Setting Revenues
Concluding that their product and services lineup is worthy of significantly more attention and value, it still leaves a question- what about their financial performance?...the answer: it's impressive.
In fact, Data433 posted record-setting revenues in its third-quarter, eliminated $10 million in derivative liabilities, and reduced expenses by 35% in that same period. Those actions each enhance value. And while those accomplishments could fuel a rally on their own, ATDS did even more.
Also, in Q3, Data433 increased equity by $12.5 million, paid down roughly $500,000 in acquisition debt, and recorded its highest quarterly bookings ever. Thus, it can be said that Data433 is firing on all cylinders. And the better news is that each deal, and each quarter of record revenues, puts the company in a stronger position to capitalize on and maximize its near-term opportunities.
Therefore, as well as Data433 is performing now, investors suggest that the best is yet to come. Moreover, most agree that with the digital and data security market booming, Data433 is in the right market, is doing the right things, and is there at the right time.
Nevertheless, investors demand performance, and ATDS is delivering there as well. As noted, its record revenues, the slashing of its debt, and its highest booking rate ever last quarter are standout achievements. Still, looking forward to Q4, ATDS is expected to do even better. And if they can double-down on consecutive quarterly records, it may fuel the momentum needed to make 2021 its best year ever.
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