SmartWall: better cyber-defence
1st July 2021 |
Many of the stocks in our Frontier Tech Investor portfolio have businesses that are based on the more efficient handling of data.
Some are involved with the world of crypto, which is based on the security offered by blockchain technology.
Others are involved with 5G network capabilities, which are dedicated to faster movement of large quantities of data.
Still others process data in order to deliver solutions that help to drive the green energy transition.
At the frontier of technology, (a lot) more of the global economy is digital.
Or, as Sam says, almost all companies are technology companies to some extent these days.
Among much else, that means that the potential rewards to cyber-criminals is greatly increased.
This is reflected in the hard numbers.
The cyber-attack problem defined
Cyber-attacks are clearly on the rise, with the number in Europe alone increasing from 432 in 2019 to 756 in 2020.
A cyber-attack, in simple terms, is an attempt to gain unauthorised access to a computing system or network, with the intent to cause damage.
Cyber-attacks can cause significant financial and reputational costs to businesses.
To consumers, they can lead to sensitive, personal data being exploited.
The latest, high-profile cyber-attack affected JBS, which is the world’s largest meat processing company.
On 3 June 2021, JBS revealed it had suffered a cyber-attack, in which its computer systems in Australia and North America were targeted by hackers.
Its production lines in these locations were temporarily shut down.
In response, JBS paid a ransom of $11 million to the hackers.
In this kind of situation, a ransom is when the attacker demands payment from the victim to restore access to the data.
The other side of the coin
Fortunately, cyber-attacks are only one side of a metaphorical coin.
On the other side is cyber-defence – a new market opportunity for investors.
At the same time, it has created a new market opportunity.
Corero Network Security (LSE: CNS) is seizing this opportunity and is helping to keep networks safe from cyber-attacks.
The company is a provider of distributed denial-of-service (DDoS) cyber-defence solutions.
A DDoS attack is when hackers try and make a service unavailable by overwhelming it with traffic from many sources.
On 23 June 2021, the company announced some enhancements to its award winning SmartWall Threat Defense Director solution.
In this, it has deployed the expertise of Juniper Networks, with whom it has a long-standing partnership; specifically, Corero will be incorporating Juniper’s MX Series Universal Routing Platforms, alongside its SmartWall software.
In particular, the enhanced SmartWall solution will now be applicable to customers operating in the growing 5G market.
Also, the solution will adopt improved IP address detection software, that can successfully identify the geographic location of attackers.
Finally, the solution will provide a multi-tenant service portal, giving customers transparency over their network security features.
Corero CTO, Ashley Stephenson, noted:
“The newest enhancements to SmartWall TDD now make it easier than ever for customers to deliver automatic, real-time DDoS protection. Our partnership with Juniper allows both Corero and Juniper to deploy an industry leading DDoS protection solution, leveraging their SDN-enabled MX Series routers and Corero’s software intelligence.
“These software enhancements enable us to deliver leading protection against the growing threat of DDoS.”
To us, this upgrade in Corero’s SmartWall solution shows its commitment to delivering the highest level of cybersecurity.
With cyber-attacks on the rise, we believe that it is inevitable that more businesses will start to deploy cyber-defence solutions.
This reinforces our optimism for Corero’s future profitability.
At the same time, its ability to cater for the 5G network market boosts the company’s credentials.
Currently, the 5G network market is in its infancy, and is on the verge of wide-scale deployment.
We reiterate our HOLD recommendation on the stock. You can find the original recommendation here.
Buy list update
AMTE Power
AMTE Power (LSE: AMTE) is a manufacturer of lithium and sodium-ion battery cells for specialist markets.
In particular, the cells target the automotive industry, in which the transition towards electrification is well underway.
As a reminder, the UK government aims to ban the sale of petrol and diesel cars by 2030.
On 25 June 2021, AMTE revealed that it has been chosen as the lead supplier in a government-funded project called ULTRA.
The project is focused on deploying AMTE’s Ultra Energy and Ultra High-Power cells to the automotive industry.
Three other automotive supply chains will also be receiving grants.
In the project, AMTE will be receiving a grant of £2.3 million from the UK government’s advanced propulsion centre (APC).
At the same time, AMTE will receive guidance and cooperation from leading global automotive manufacturers. This will help to ensure that the batteries are ready for volume production.
AMTE CEO, Kevin Brundish, stated:
“We are delighted to have been chosen to lead this project. The APC selects companies that they believe will be key players in the UK’s electric vehicle supply chain, and funds projects that will take products into this high-volume market. Working closely with leading automotive manufacturers and supply chain companies is an ideal position to be in as we work towards the volume production of our products.”
To us, this project will act as a catalyst for the commercialisation of AMTE’s batteries.
Also, the fact that the UK government has identified AMTE as a “key player” in this space gives the company huge credibility.
We reiterate our BUY recommendation on the stock. You can find the original recommendation here.
Rolls-Royce Holdings
Rolls Royce Holdings (LSE: RR) is a designer and manufacturer of engine systems for use in the air, on land and at sea.
So far, it has been a slow burner for us. It has suffered from the disruptions caused by the Covid-19 pandemic to the global travel and aviation industries.
However, we truly believe that the company will soon reverse some of this damage.
Largely, this is because of its capacity to support large companies that are making the green energy transition.
On 24 June 2021, Rolls-Royce announced a partnership with MAN Energy Solutions.
In the deal, MAN’s PBST business will distribute Rolls-Royce’s state-of-the-art mtu turbochargers to new markets.
Rolls-Royce designs the turbochargers to meet specific requirements across a number of industries, including marine, rail and construction.
Turbocharging compresses air in engine systems, allowing more oxygen into the combustion chamber. This allows more fuel to burn, increasing engine efficiency and performance.
Rolls-Royce Power Systems CEO, Andreas Schell, stated:
“With this cooperation, we are combining our competencies – on the one hand, PBST’s global sales structure for turbochargers and, on the other hand, Rolls-Royce’s latest high-efficiency mtu turbocharger technology for high-speed diesel and gas engines.”
To us, the deal will help Rolls-Royce to establish its efficient energy systems amongst new large corporate customers, providing new revenue streams.
Many potential customers are looking to deal with more stringent emissions regulations: for instance, the UK government looks to achieve its “net zero” target by 2050.
We reiterate our BUY recommendation on the stock. You can find the original recommendation here.
The Frontier Tech Investor “Top Three”
Sometimes it’s hard to decide on which stocks to invest in from our buy list.
Below is our Frontier Tech Investor “Top Three” section showing three stocks in open BUY positions. If you’re trying to figure out what to invest in next, these are three that we think are a great place to start.
This doesn’t mean our other stocks are no good, this is just a tool to help you spot the next Frontier Tech Investor stock that could be worthy of your consideration.
Kanabo Group (LSE:KNB) – one of the world’s most controversial investment ideas is based on the legalisation of medicinal and recreational cannabis. It’s sweeping across Canada and now the United States. Both countries are leaders on the way to legalisation. In Australia a similar path is being followed. And now the UK is on the same track. Kanabo is one of the newest and best plays in this huge investment opportunity. You can find our recommendation here.
Mode Global Holdings (LSE: MODE) – our most recent recommendation, Mode, looks to revolutionise the way in which payments are being conducted. Its platform provides a seamless way to manage and spend assets from both monetary systems; the old, fiat currency system, and the new, crypto and digital assets system. The platform has unique features, such as the potential for you to earn interest on your bitcoin holdings. We see the popularity of Mode rising in line with the wider adoption of cryptocurrencies as a means of payment. You can find the original recommendation here.
Velocys (LSE: VLS) – there’s no doubt that governments will continue to push their “green agenda”. This means that they will do what they can to support industry in ways that will help enable carbon neutral economies. Velocys is a big part of this – developing sustainable fuels for transport and logistics (in particular aviation) with pioneering technology. If you’re looking for a great “green energy” play, Velocys is a very good place to start. You can find the original recommendation here.
Sam Volkering
Editor, Frontier Tech Investor
Elliott Playle
Junior Analyst, Frontier Tech Investor
