I think too many investors find the really complex tech, like full cyber-security capability, hard to understand. From my personal experience in software engineering from the early 1990s to now, it is somewhat staggering that so many investors fail to understand the ever-growing threat to an increasingly interconnected digital world, yet the same people must surely understand that our world is connected absolutely via 'the digital age'. In the world of high-tech spying, theft, and mischief, I see growth most quickly accelerating by acquiring specialists with expertise in every capability in this rapidly growing area of technology and having the skills to get their heads around the unknown capabilities. Perhaps the impatience of our new breed of investors is also having the usual effect. But I can't be the only one to witness the buyers loading up at a discount every day in the closing auction.
The synergies that will come from building the largest cybersecurity specialist organization in Oceania (and the 'five-eyes' countries are mentioned so expansion internationally will be also on the horizon) will not take much longer to provide us with rewards IMO. The 'one stop shop / Cyber360' direction is absolutely the right direction to be moving in, and the board has clearly found it easy to sell the idea to other cyber-security companies with specialty focussed expertise, who can clearly see the benefits of sharing knowledge and experiences in a world where only the very best of the best are employed. Investments in specialist platforms and tooling have also been made. An enormously broad toolset is required to defeat the growing menace and the beauty of offering the full suite of solutions to any exploitative threat will be hugely profitable. Why bother contracting cyber-specialists from 3 or 4 companies when a single company exists that can confidently boast that they are able to handle any threat that may arise? More and more government departments, scientists, medical centers, power companies, tertiary institutions etc have reached the point where cyber-security protections are now on-hand or at arms-length 24x7. Organic growth will continue hand-in-hand with aquisitions until Tesserent management is confident they have all bases covered. Perhaps only when the Tesserent academy begins releasing its first graduates will the acquisitions stop.
This report was so close to profitability that I wonder why I even need to jump in and make the observation. I have taken the opportunity to load up.
TNT Price at posting:
24.0¢ Sentiment: Buy Disclosure: Held
