Hub Cyber Security (HUBC) Analysis

Hub Cyber Security 

Chart done on hourly timeframe. The cybersecurity space reached another new record in 2023 and is expected grow at an annual average of 12.3% in the next six years, providing opportunities for growth for the companies within. The rise of digitalization is set to bring more threats from hackers and attackers, which will ultimately force more people and businesses to add more advanced cybersecurity technology to their operations. Big names like CrowdStrike, Palo Alto Networks, and Zscaler have all grown to reach more than a billion in annual revenue in recent years, reflecting the growth in the space. However there are still some small companies that are trying to take a chunk from the market, one of those names is Hub Cyber Security. HUBC is still a young company with a very tiny market cap of only 9M. The Israeli company was founded in 1984 and has stuck through the tests of time, but they struggled for years before finally catching traction in the last few. 2022 was especially a good year for them, growing their revenue by 150% to nearly 80M, that’s ten times then current market cap. However despite their revenue growth, the company’s losses have widened significantly, an alarming signal for a service based company.

Young companies are often forgiven for reporting losses, but we feel that HUBC’s losses are far too wide for the stock’s health. Losing nearly 80M in profits on 80M in revenue is a sign that there could be poor money management in the company. A small cap like this should be taken with a high risk mindset, with the chance of them needing to raise more capital or even being sold as a probability. 

Perhaps the stock will see more upside as attention shifts to cybersecurity stocks in the coming years, but their leaders will need to improve the bottomline to attract and KEEP investors. 

Technical analysis:

If we ignore the numbers and only focus on the chart, we see HUBC has shown some strength lately, leading it to a significant resistance around .98-1.00. Buyers need a move above that level for a breakout to 1.20-1.25 next. Supports are .77 and .67.