Attractive Entry Point, Surge in M&A Good for LDSR

Investment and Company Research
Opportunity Research
TRADING ALERT
 

Recent sell-off in LandStar (OTC - LDSR) appears to be buy on rumor sell on news. Thanksgiving week schedule may also prove to be in LDSR's favor.

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LANDSTAR, INC.

Attractive Entry Point LDSR; Recent Industry M&A Confirms Strategy

Rob Goldman
rob@goldmanresearch.com

November 20, 2018
 

LANDSTAR, INC. (OTC – LDSR - $0.0034)

Price Target: $0.027 Rating: Speculative Buy
   

COMPANY SNAPSHOT

INVESTMENT HIGHLIGHTS

LandStar, Inc., through its wholly owned subsidiary Data443™ Risk Mitigation, Inc., enables secure data – across local devices, network, cloud, and databases – at rest and in flight. ClassiDocs™, the company’s award-winning data classification and governance technology, provides GDPR compliance and DSAR management coupled with DLP, CASB, SIEM, and cloud solutions to provide user-enabled, governance-enabled, up-to-date security for every data point, every time. The WordPress-based GDPR Framework enables organizations of all sizes to comply with the GDPR and other privacy frameworks. ClassiDocs™ for Blockchain provides an active implementation for blockchain transactions from inadvertent disclosure and data leaks.

 

KEY STATISTICS

 
Price as of 11/19/18 $0.0034  
52 Wk High - Low $0.0266 - $0.0002  
Est. Shares Outstanding* 4.48B  
Market Capitalization* $14.2M  
3 Mo Avg Vol 13,380,146  
Exchange: OTCPK  
 

COMPANY INFORMATION

LandStar, Inc.
1053 E. Whitaker Mill Road, Suite 115
Raleigh NC 27604
Web:     www.Data443.com
Email:   ir@data443.com
Phone : 919.858.6542

Conclusion: At current prices, LDSR is just plain cheap. Following recent announcements regarding new marketing channels and an LOI (soon to be a closed acquisition), LDSR’s shares have sold off. In our view it is a simple “buy on rumor sell on news” situation—making LDSR very attractive for investors seeking outsized returns.

But, wait…there’s more: From a trading perspective, it has been our experience that while most investors are preparing or enjoying themselves during the Thanksgiving Week, a dearth of sellers leads low-priced stocks such as LDSR to higher levels. Given the backdrop of recent news and its current positioning, LDSR seems to fit the bill.

Cybersecurity M&A is heating up in the past week alone. Noted mobile player Blackberry is buying Cylance, an enterprise cyber firm for $1.4 billion. Forescout bought SecurityMatters for $113 million. Buyout firm Thomas Bravo is reportedly considering buying software security giant Symantec. Ironically, this rumor comes on the heels of Symantec executing 2 acquisitions of its own—in the past 2 weeks.

LDSR’s aggressive roll-up strategy on track. We maintain that LDSR could reach an $10M annual revenue run-rate in 1Q19. and an annual revenue run-rate that exceeds $40M in 2020.

LDSR’s shares could be news-driven and that is a good thing. New acquisitions, offerings, and markets should drive LDSR’s stock to new levels.

Senior Analyst: Robert Goldman

Rob Goldman founded Goldman Small Cap Research in 2009 and has over 20 years of investment and company research experience as a senior research analyst and as a portfolio and mutual fund manager. During his tenure as a sell side analyst, Rob was a senior member of Piper Jaffray's Technology and Communications teams. Prior to joining Piper, Rob led Josephthal & Co.'s Washington-based Emerging Growth Research Group. In addition to his sell-side experience Rob served as Chief Investment Officer of a boutique investment management firm and Blue and White Investment Management, where he managed Small Cap Growth portfolios and The Blue and White Fund.

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I, Robert Goldman, hereby certify that the view expressed in this research report or article, accurately reflect my personal views about the subject securities and issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the recommendations or views expressed in this research report.

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