Is Imperva The Worst Name In Cyber-Security Or Has It Fallen A Bit Too Much?
- Yesterday Imperva reporting disappointing preliminary results for 4Q'13. Investors rushed out of it, dropping shares 43% yesterday, and about 60% below highs a month ago.
- The cyber-security industry is experiencing long-term secular demand growth due to IP and data security threats from governments, criminals and hacktivists. Corporate spending will pick-up to match this threat.
- While none of the cyber-security plays will appeal to value investors, growth and momentum investors may find opportunity here, particularly in Imperva and FireEye.
- Shares have fallen a bit too much too quick, particularly on Imperva, and yesterday's action looks more like a wash-out, setting up for at least a quick technical rebound.