MGT Capital Investments Inc. (NYSEMKT:MGT) investors are cheering the announcement of the commercial release of the company’s first network security product designed by whitehat hackers and John McAfee.
MGT Capital shares reacted to the news, rising nearly 25% to $2.64 in early trading Friday.
“The best ideas in technology are simple to use and serve an unmet need. Computer hacking is the number one threat to the safety and privacy of the world’s population. Sentinel provides an enterprise IT department with early detection of potential intrusions. This head start gives a distinct advantage in what indisputably is a war presently being won by the bad guys,” stated John McAfee, Executive Chairman of MGT. “At MGT we are extraordinarily lucky to have assembled a group of talented programmers that share our vision of the future of cybersecurity.”
Sentinel represents a new paradigm in the defense against malicious hackers. The system, comprised of a passive hardware device connected to each subnet, monitors network traffic for suspicious activity using sophisticated algorithms and heuristics, generating an alert and deploying appropriate countermeasures. Simply put, Sentinel is the first user-friendly security device to provide actionable intelligence before companies are hacked.
Further, Sentinel is the first in a suite of products designed to proactively protect networks, computers, users and their data. Without degrading network quality, the system gives the edge back to companies by alerting them to intrusions on their network, and by distracting hackers with honeypots before real damage occurs. Sentinel mitigates risk by greatly reducing the time a hacker has to operate inside protected networks, upload malware or steal data. This also allows for an investigation to begin while an attack is in progress, rather than after the perpetrator has completed the hack. (Original Source)
MGT shares have been on a roller coaster recently after the cybersecurity investment firm disclosed that it may have found a solution for having the 43.8 million shares, which are required to be issued in order to complete the closing of the D-Vasive merger, listed on the NYSE MKT.
On the ratings front, Ascendiant Capital analyst Edward Woo initiated coverage with a Buy rating on MGT and a price target of $6.00, in a report issued on August 15. The current price target represents a potential upside of 184% from where the stock is currently trading. According to TipRanks.com, Woo has a yearly average return of 13.8%, a 62.5% success rate, and is ranked #428 out of 4182 analysts.
MGT Capital Investments, Inc. engages in the business of acquiring, developing and monetizing assets in the online and mobile gaming space, as well as the casino industry. It operates through two reportable segments: Gaming and Intellectual Property.