ATDS is a Tech Stock Built for Remote Business

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DATA443 RISK MITIGATION, INC.

Pigs Get Fat, Hogs Get Slaughtered; ATDS Stock Poised for Major Rebound

Rob Goldman
[email protected]

April 2, 2020
 

DATA443 RISK MITIGATION, INC. (OTC – ATDS - $0.0401)

6-Month Price Target: $0.77 Rating: Speculative Buy
   

COMPANY SNAPSHOT

INVESTMENT HIGHLIGHTS

Formed in 2017, Data443 Risk Mitigation, Inc.  provides cyber-data security protection, software and services. Growing privacy legislation such as the CCPA and GDPR are increasing the demand for capabilities delivered by The Company. The Company provides solutions that are designed to protect data via the cloud for sensitive data of all types.  The Company's suite of products allowing its clients to create, share, and protect their data wherever it is stored. Its solutions are delivered by proprietary technologies and methodologies that it has developed and acquired, empowering its primary competitive advantage.

 

KEY STATISTICS

 
Price as of 4/1/20 $0.0401  
52 Wk High - Low $1.90 - $0.03  
Est. Shares Outstanding 19.5M  
Market Capitalization $.8M  
30-Day Average Volume 406,293  
Exchange: OTCPK  
 

COMPANY INFORMATION

Data443 Risk Mitigation, Inc.
101 J Morris Commons Lane
Suite 105
Morrisville NC 27560
Web:     www.Data443.com
Email:   [email protected]
Phone : 919.858.6542


 

Stock Oversold: Five Reasons Why. These may be unusual times given the current COVID-19 pandemic, which explains in part, why ATDS stock has sold off so sharply. We believe savvy investors/traders will recognize huge upside and limited downside in ATDS. Here are 5 reasons why ATDS is poised to move dramatically higher.

1. Business/Fundamentals Unchanged. Despite the swift downturn in the economy, ATDS has experienced no reduction in business. Active sellers and debt holders trying to take advantage of the awful market have severely sold off the stock and we believe most of these sellers are gone and won’t enjoy the future upside.

2. ATDS is Built for this Economy. With a distributed and growing remote workforce, the core email archiving, and classified docs for lawsuit e-discovery features of ATDS’ key subsidiaries are more important than ever.    

3. The Numbers. FY19 financials will be released soon and they will likely show revenue of $1.5–$1.9M—yet the market cap is around $1M. Plus sales could reach $5M this year—all demonstrating tremendous value.

4. ATDS Growing Revenue. Earlier this week ATDS announced an LOI to acquire the assets of Internet Software Sciences, which has 100,000 installs, and 1M active users. The firm is ripe for cross marketing of the core ATDS offering and could add $250,000 in sales this year alone.

5. New 6-Month Target of $0.77. Our new $0.77 target reflects the average FY20E P/S multiple of key comps VRNS and SAIL, which have had only a small sell-off, relative to the misunderstood ATDS. At $0.77, the stock would trade 3x FY20E sales, a 40% P/S discount to the comps. In January the stock traded at $0.70 and we believe it will trade there again in 2H20. Even at a paltry 2x FY19E, the new floor should be $0.14-$0.19.

Senior Analyst: Robert Goldman

Rob Goldman founded Goldman Small Cap Research in 2009 and has over 25 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.

Analyst Certification

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.

Disclaimer

This Opportunity Research report was prepared for informational purposes only.

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