|Written by GSCR Staff|
|Wednesday, 13 February 2013 11:07|
LifeLock, Inc. (NYSE – LOCK - $9.37) is the identity theft company that has been around since 2005 and went public in October of 2012. The initial offering was at $9, and the stock sank to $7.21, but is now back on the uptick after the shake out from the IPO on decent average volume of about 150,000 – 200,000 per day. In hindsight, timing was poor, given the market downturn at that time.
For those of you without a television or radio, LifeLock provides identity theft protection services for consumers and enterprises with more than 2.3 million paying members and 250+ enterprise customers. Its main product is the LifeLock Identity Alert system which provides its members with real-time alerts and a response system for identity threats through text message, phone call, or e-mail; and ID Score, an identity risk service that delivers on-demand assessment of the risk of an individual at account opening and throughout the customer lifecycle. The company recently received some publicity from Hollywood as it is featured in the new movie Identity Thief.
The Company is scheduled to release its (4Q12) quarterly financials on February 20th for the first time as a public company. We don’t know if the Street EPS estimates of $0.07 are a lock, but we are feeling very secure about the Company’ s prospects and would not be surprised to see a bounce on the news of the results. Newly public firms tend to perform better than expected the first time out.
The charts are very bullish on the technical side for LOCK. The company continues to innovate in products and pursue an aggressive marketing campaign. We see this as both a good short term and longer growth play with the possibility of the stock reaching $11 level in the near term.
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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