|Written by GSCR Staff|
|Tuesday, 19 August 2014 07:02|
With law enforcement and crime fighting in the news for all the wrong reasons, there seems to be an overall migration to this theme in the small cap space.
In Monday’s Guide we mentioned the recent success of Taser International (NASDAQ—TASR—$14.68). Well, believe it or not there is another old pick in the crime fighting space that may be entering another accumulation phase.
Back in Early February 2013 we profiled LifeLock, Inc. (NYSE – LOCK - $14.35) in the Market Monitor and the stock has had a nice climb of over 50% to its current level. The identity theft service and software provider continues to innovate and introduce new products to grow revenue. Case in point, the Company announced new product enhancements on its LifeLock Advantage™ and LifeLock Ultimate Plus™ that included personalized activity alerts on credit card, checking and savings account transactions in late July. Moreover LifeLock works with both the FBI and local law enforcement throughout the country. Earlier this summer, the Company, through its partnership with the FBI-Law Enforcement Executive Development Association (FBI-LEEDA) today announced a major milestone in that it had completed training in all 50 states to over 10,000 law enforcement agents.
On the micro level LOCK offers a great picture from a technical perspective with a very bullish outlook for the next 60-days. For 2014, revenue is estimated to grow over 27% from approximately $370 million in 2013 and another 21% from 2014 to nearly $570 million in 2015. Plus, EPS is slated to jump from $0.46 in 2014 to $0.64 in 2015. With no long term debt on the 2013 balance sheet there is no reason to believe the Company cannot continue to innovate and grow. We think LOCK can get to $18 by the end of 2014.
Have a great day!
Disclosure: Goldman Small Cap Research analysts are neither long nor short these shares but may elect to purchase the stock within the next 48 hours.
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