Stock Tip Tuesday…

Plurilock securities INC (🇨🇦 :$PLUR)

^_NEWS
The cyber security steal !

Plurilock Security Inc is an information security company that sells cyber-products to big business and government agencies in the United States, India, and Canada. Why is it my pick for the week ? Well, lets get into it.

Firstly, the cyber security industry is booming and I can only see further growth in the future. You would be shocked at the amount of fraud and hacking attempted on a daily basis to various businesses. With an ever expanding computerized world added with the rise of AI, and cyber security threats definitely not going away. I believe this area is only going to expand. As backed up here 👇

So in this massive industry why Plurilock ? It all comes down to its potential growth. The company was founded in 2016 in Canada and it has rose up through the ranks. Cyber security contracts are a notoriously long process to get over the line, especially government contracts. This is because the company is required to go through a huge vetting process as the data they will be working with and protecting is so sensitive. However, this company from Victoria Canada has gone through this process seamlessly and secured a staggering number of U.S. government contracts in the last few years. 

Now, a criticism of service companies are that have to continually sell themselves, are hard work, they’re expensive and they’re cyclical, even seasonal. Add the fact that the U.S. government is very uncertain at the moment and a new party in power could axe companies who worked with the old regime you may think it could look bleak for Plurilock. However, there is one fact you are missing. Information security is a whole other beast from most industries.

Once a company lets an info-sec firm gets into bed with them, it takes a terrible catastrophe to make that organization want to go through the process of unplugging it all and taking the time and effort, and government approval process, to switch to another provider. So this is for the long haul !

More Criticism ❓

The margins are low. The main argument I see behind a lot of companies that sell cyber-products to big business and government agencies, and it’s true. These products don’t have a super high margin. Fair criticism.

However, Plurilock has taken steps to address this issue. By acquiring competitor companies with extensive client lists and integrating their products into Plurilock’s platform, they have created an upsell business model. This approach allows them to bundle several low-margin products without needing to find new clients for each sale. Additionally, Plurilock has started offering consulting services to help these companies effectively use the tech tools, and the consulting side of their business has a 50% profit margin. Therefore, it is likely that the margin issue will be resolved over time.

⭐ Why Now ? ⭐

It’s a fire sale out there and you might as well pick up a few discounted products. Plurilocks been on a rise, in the last year. Heading to almost to $1.50. It now finds itself at $1.09. I believe it’s a dip and one to take advantage of. Even at $1.50, it wasn’t in uncharted waters, as it was still lower than its 2023 price. Now with the company being far more mature, taken care of some outsized debt and has a much fatter shareholder base. Why not jump on the train ?

Thank you
That’s All Folks

Thank you for reading. Like usual. Not financial advice.

We don’t own stock in PLUR. Full disclaimer here

Cheers,