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We've been telling Money Morning readers for months now that cybersecurity represents one of the biggest investing opportunities for the New Year.
A new move by Congress figures to make our prediction come true.
Congressional leaders this week vowed to make cybersecurity a top issue in 2012, a move that will significantly elevate the sector's visibility. That will alert global investors at all levels to this burgeoning opportunity – a reality that will almost certainly be bullish for cybersecurity stocks in 2012.
And that means you may want to make your moves now.
Cybersecurity: "Critical Legislation" Needed
On Wednesday, U.S. Senate Majority Leader Harry Reid, D-NV, wrote a letter to Senate Minority Leader Mitch McConnell, R-KY, expressing the need for their chamber to take up legislation that deals with Internet-based attacks early next year.
"Given the magnitude of the threat and the gaps in the government's ability to respond, we cannot afford to delay action on this critical legislation," Sen. Reid wrote.
Lawmakers have grown alarmed in recent years at the increasing number of attacks on government agencies, as well as companies that do business with the federal government. Such attacks can be very costly; and in some cases sensitive information has been stolen.
With an estimated $221 billion a year lost due to data theft, corporate America shares those concerns.
The high stakes means that savvy investors can make two assumptions:
- First, investors can assume that companies are taking steps to protect themselves. Technology-forecaster ABI Research says global spending on network and data-security technology will rise from about $6 billion last year to more than $10 billion by 2016.
- And second, given those massive outlays, it's clear that cybersecurity will be a major investment trend – and a huge profit opportunity – for years to come.
We've already taken steps to help you capitalize. For instance,Money Morningon Sept. 26 reported on five promising companies. Since then, despite markets that have been rocked by concerns over the Eurozone debt crisis, three of the five stocks have posted gains. And the other two are essentially flat – even though most tech stocks have been savaged.
The best performer, Sourcefire Inc. (Nasdaq:FIRE), is up an impressive 17.63%.
But the best pick, held exclusively for subscribers ofPrivate Briefing, has been up as much as 24% since we recommended it.
And that's just a start: Wall Street expects this promising stock to more than double over the next year.
For only $5 a month,Private Briefingsubscribers get a steady stream of such premium picks. In the first three months since its Aug. 11 inception, this advisory service delivered 11 double-digit gainers.
For more information on how to sign up forPrivate Briefing,click here.
Once you sign up, just pull up the Sept. 27 research report titled"Making Crime Pay … For You."That report will tell you all you need to know about this intriguing profit play.
News and Related Story Links:
- Money Morning:
Five Ways to Profit from Cybersecurity Stocks.
Senate to take up cyber bill in 2012.
- U.S. Senate Majority Leader Harry Reid:
- U.S. Senate Minority Leader Mitch McConnell:
About the Author
Dave has been a journalist for more than 35 years, including 18 spent at The Baltimore Sun. He has worked as a writer, editor, and page designer at different times in his career. He's interviewed a number of well-known personalities - ranging from punk rock icon Joey Ramone to Apple Inc. co-founder Steve Wozniak.
Over the course of his journalistic career, Dave has covered many diverse subjects. Since arriving at Money Morning in 2011, he has focused primarily on technology. He's an expert on both Apple and cryptocurrencies. He started writing about Apple for The Sun in the mid-1990s, and had an Apple blog on The Sun's web site from 2007-2009. Dave's been writing about Bitcoin since 2011 - long before most people had even heard of it. He even mined it for a short time.
Dave has a BA in English and Mass Communications from Loyola University Maryland.