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This Pure Play Cybersecurity Company is Setting Up For a Big Breakout!

New breed of crime fighter has been named
one of the “world’s hottest cybersecurity companies.”

Dear Profit Seeking Investor,

The cybersecurity market is hot—and getting even hotter. Cybercrime is in hypergrowth, and companies are increasing their cybersecurity budgets to counter the threat.

Cybercrime losses are staggering—$3 trillion a year, and expected to hit more than $6 trillion by 2021. The threats are so frequent and so dangerous that Warren Buffett sees cyberattacks as the biggest threat to humanity, bigger even than nuclear war.[1]

Companies are racing to shore up security, spending billions to lock down servers, emails, smartphones, and countless other devices in the growing “internet of things.”

The speed that cybercrime is growing is beyond anything I’ve ever seen. There were 20,000 attempted cyberattacks every week just three years ago. That’s already a staggering number. But today, Microsoft estimates there are 600,000-700,000 cyberattacks per week—a rise of 3,400%![2]

That’s why cybersecurity is the fastest-growing sector in information technology.[3] All other tech sectors are driven by reducing inefficiencies and increasing productivity. But cybersecurity spending is driven by serious immediate needs—the surging growth in cybercrime.


Pure play cybersecurity stocks are beating markets by over 12x!

A new kind of company is filling the needs of enterprises for high-level cybersecurity. Not first-generation security companies like Microsoft or Symantec that sell security soft1ware as part of a larger suite of products and services.

I’m talking about pure play companies that are innovating cybersecurity solutions as rapidly as the threats appear.

As you can see by those returns, pure play cybersecurity companies are revving up, beating the markets by higher and higher margins.

The market knows that pure play cybersecurity companies are the future of the sector. These are the companies that will dominate, because new and different threats emerge nearly every day, and the businesses who don’t keep up can be destroyed by criminal hackers.

So where might the biggest profits be for investors?

I’m betting on a little-known pure play cybersecurity company named VirtualArmour (OTCQB: VTLR, CSE: VAI, FRA: 3V3).

VirtualArmour is a well-established, Denver, Colorado metropolitan area-based, fast-growing cybersecurity provider that is emerging as a leader in the sector. The company’s cybersecurity solutions are unmatched, protecting not just from known dangers, but anticipating next-generation attacks.

That’s one reason why…


VirtualArmour is my #1 cybersecurity power play for potential big profits in 2019.

There are several important reasons why VirtualArmour (OTCQB: VTLR, CSE: VAI, FRA: 3V3) could be your best stock of 2019, including:

VTLR was named one of the “world’s hottest and most innovative cybersecurity companies to watch in 2018” by Cybersecurity Ventures, the world’s leading cybersecurity forecaster.[5]

They have enjoyed a 100% client retention rate for the last six quarters, which all but eliminates expensive client churn, and is a testament to the company’s stability and quality.

A full 30% of revenue recurs monthly on average multi-year terms, giving VirtualArmour steady and predictable cashflow.

There are several other viable companies in the cybersecurity sector. But with most of them trading in the $15 to $35 range, VirtualArmour is one of the few companies that gives investors the potential for explosive returns.

That’s why VirtualArmour is my number one cybersecurity pick for 2019. Take a look at all the reasons why I believe that VirtualArmour could potentially be your best, highest-gaining stock of 2019. But first, let me introduce myself.


Routinely achieving gains of 250% or more.

James West

My name is James West, and in addition to being a contributor here at Financial News Now, I am also the publisher and editor of The Midas Letter.

You may recognize me from my guest appearances on Business News Network, CNBC, Bloomberg, Reuters, and investment columnist in the Financial Post, where I offered my views on market trends and stocks.

But first and foremost, I am an investor. I invest exclusively in a higher-risk, high-reward environment.

In the right market, that means I can routinely achieve 100–250% lifts on my investments, with the ultimate goal of reaching +1,000% gains.

Some of my picks in the last 24 months include:

I don’t recommend stocks to my readers. I simply tell them what I’m investing in, and why. I typically deploy capital only when a market has a solid trend in place to the upside, and avoid markets altogether when they turn bearish or become directionless.

What I’m seeing right now in the cybersecurity industry is one of the clearest market trends I have seen in years. Growth is setting up to be spectacular, and companies in this industry are reaping big rewards in both new contracts and increasing revenue. Share price could soon follow.

To understand why VirtualArmour (OTCQB: VTLR, CSE: VAI, FRA: 3V3) could pay investors richly in a short timeframe, you need to understand the sector and why it is growing so fast.


Cybercrime is rampant…and it could lead to your biggest gains of 2019.

Cybercrime is only getting worse. The U.S. has declared it a national emergency because of its risk to the nation’s security and economy.

In fact, the 16 intelligence agencies that determine the country’s biggest threats have named cyberattacks as the number one danger to the U.S. for the past three years in a row.

The stakes are extraordinarily high. Cybercriminals running amok on digital networks have the ability to take down companies, industries, whole economies, and even nations.

Here is a live map demonstrating active cyberattacks happening right now:

If map is not visible, please hit refresh and scroll out to see worldwide threats. Source:

Global research firm Cybersecurity Ventures writes that:

“If the cyber evildoers have their way, lives will be lost. Economies will be shaken. Cars and planes will crash. Nations will clash. Power grids will go down. Businesses will go under. Reputations will be ruined. Government secrets will be exposed. Billions of personal identities will be stolen. Trillions of dollars will be taken.” [7]

Enormous damage is being done through these attacks. And businesses are realizing that the only thing that stands between them and disaster is the legion of cybercrime fighters that make up the cybersecurity industry. That’s why…


Cybersecurity is the next big thing for investors.

Cybercrime is heating up. And the losses are staggering. One British company lost $1.5 billion in a single attack. Two banks in the Persian Gulf lost $45 million in a few hours.[8] And the nation of Estonia came practically to a stand-still when hackers took down the country’s government offices, banks, news organizations, and telecommunications companies.[9]

You’ve probably heard of some of the most horrifying and audacious cyberattacks.

  • 3 billion user accounts stolen from Yahoo
  • 76 million customer records hijacked from JP Morgan Chase[10]
  • 57 million personal driver and customer records stolen from Uber[28]
  • 143 million consumers in the United States had their credit information dangerously compromised[6]
  • 500 million customers had their private information and travel details exposed from Marriott.[29]
  • 30 million users affected by security breach at Facebook. Hackers stole detailed personal data from 14 million people.[30]

Most frightening… there was a global ransomware attack called WannaCry a number of months ago—the worst and most widespread malware attack to date. The cyberattack spread across the globe, infecting an estimated 300,000 computers in more than 150 countries.

Unlike other major breaches that have occurred over the past several years, the WannaCry attack went beyond causing financial damage and impacted essential public services driving home the seriousness of cybersecurity to all business leaders.

Evidence suggests North Korea as the source of the attack.[11] Take notice, VirtualArmour maintained a 100% client protection success rate against the WannaCry attack for its entire client base!

These continuous, rampant crimes are believed to be committed by everyone from the Russian mafia to 15-year olds with an Internet connection and some coding knowledge.

The FBI is slow to catch up. Former director James Comey says, “Cyber threats are too fast, too big, and too widespread for any of us to address them alone.”[12]



Companies and even government institutions are turning to a new breed of crime fighter.

They’re turning to leading edge cybersecurity companies that are hired to protect sensitive and valuable data from the hands of hackers.

The best of them are called Managed Security Service Providers (MSSPs), and you’ll be hearing a lot more about them in the near future, if you haven’t started to already. If you think cybersecurity companies are hot, wait till you see what these companies are about to do!

This elite cybercrime fighting force is being deployed both by companies as sophisticated as Microsoft and Google, and as small as the local drugstore to protect against the growing international army of cybercriminals.

You may already be familiar with names like IBM, Palo Alto and Cisco. These are some of the industry leaders in the growing digital war against crime.

Global cybersecurity spending more than doubling every year.

Since 2004, global cybersecurity spending has grown at a breathtaking pace, from $3.5 billion to $120 billion today, a whopping 3,300% increase.[15]

Yet right now, industry experts believe that companies still aren’t spending enough on security. They estimate that spending will begin to increase even faster, exceeding $1 trillion over the next five years.

I already see it happening:

I don’t know of any other pure play industry experiencing that kind of growth. It’s being reflected in the growth of companies that provide cybersecurity products and services.


Managed security services providers like VirtualArmour are the wave of the future.

Managed security services providers (MSSPs) are companies that provide more customized, tailored-to-fit security solutions than Microsoft or other giants can offer.

While 74% of large organizations in one survey said they manage IT security in-house, 82% of them said they have either already partnered with, or plan to partner with an MSSP.[17]

That means nearly the entire world of big businesses is moving en masse to MSSP-run security solutions.

VirtualArmour’s services operate around the clock through its Security Operations Centers (“SOC”)
located in Middleborough, U.K. and Salt Lake City, Utah.


The reason is because MSSPs are equipped to deal with the increasingly complex and targeted assaults in real time.

As information technology becomes more complex, companies are realizing that their IT needs are starting to overtake their business operations, absorbing ever more personnel, hardware, and budget.

The result is security sprawl, and it is not sustainable. A Morgan Stanley survey of chief information officers found that most had more than 15 different security technologies.[18]

As companies replace their premise-based data centers with virtual cloud data centers, they look for elastic ways to purchase security services, as well as methods that allow for active defense of both cloud- and premise-based workloads.

Moving IT to the cloud allows companies to reallocate costs and focus on their core business. MSSPs offer cloud-based models that are broad-based, flexible, and affordable.

Enterprises are moving away from a la carte solutions to more-efficient platforms, and as they do, MSSPs are taking a larger chunk of the market, offering consulting, perimeter management of the client’s network, live security monitoring, vulnerability testing, compliance monitoring, and security product resale.


VirtualArmour: Managed Services revenue is expected to increase in 2019.

VirtualArmour (OTCQB: VTLR, CSE: VAI, FRA: 3V3) is leading the way in the MSSP cybersecurity sector. More than any other company, they can boast of:

This pure play company generates revenue through three streams: managed cybersecurity services, professional services, and hardware and software sales.

VirtualArmour services a wide range of clients, including Fortune 500 companies, and several industry sectors in over 30 countries across five continents.

Their long-term strategic partners include Cisco, Juniper Networks, PaloAlto Networks, and IBM Security. Oh, and by the way, Juniper Networks named VirtualArmour their “Partner of the Year” in 2017.

VTLR is setting up for a big breakout. In Q3 2018, revenue increased 41% to $3.9 million, driven by growth in the number of customers. And managed and professional services revenue increased 68% to a record $1.3 million.[20]

On top of that, the company has launched an upgraded version of its proprietary CloudCastr Client portal, which delivers rich, real-time information about the environment and services managed by VirtualArmour.


VirtualArmour is built on long-term contracts and recurring revenue.

With its upgraded Cloudcastr service, VirtualArmour has the opportunity to increase its monthly recurring revenue from existing customers. This expansion revenue could be significant over the next year.

Monthly recurring revenue also gives VirtualArmour added protection to withstand market downturns. When companies need to tighten their belts, they normally look to cut new spending before they cut current spending. And one place they won’t want to cut is their cybersecurity services.

For all these reasons, I believe that VirtualArmour (OTCQB: VTLR, CSE: VAI, FRA: 3V3) will be one of the hottest companies in the cybersecurity sector. An investment in VTLR could give investors rich rewards in a few short months as this tightly-run ship adds new clients.

I’m betting VTLR could outperform other companies in their sector in both the near- and long-term. It also has a good chance of being swept up in the merger mania that is sweeping the industry.


Venture capital is heating up the cybersecurity industry.

Venture capital fuels the engines of economic growth. It plays an important role in next-stage innovation, especially at the time companies are beginning to commercialize their innovations.

The need for cybersecurity solutions to evolve as new kinds of cyber threats emerge means that there is a constant flow of young companies developing those solutions, and thus attracting venture deals and M&A activity.



In the second quarter of 2018, merger and acquisition activity in the industry totaled $1.3 billion across 50 transactions.

All this M&A activity is heating up a new generation of cybersecurity companies that will be tomorrow’s leaders. With its strong revenue growth, solid client base, large recurring revenue, and in-demand security products and services, VirtualArmour could be a prime target for merger.

Here are the top 5 reasons why VirtualArmour could be your best power play for outsized profits.


Cybercrime is exploding. Damages are predicted to reach $6 trillion annually by 2021, and security spending is expected to exceed $1 trillion cumulatively over the next 5 years.


VirtualArmour has been named one of the “world’s hottest cybersecurity companies” in 2018 by global research firm Cybersecurity Ventures.


The company boasts a client retention rate of 100% in the last six quarters, with customers including Fortune 500 companies, and several industry sectors in over 30 countries across five continents.


VTLR’s managed and professional services revenue grew an estimated 36% in 2017, and could almost double in 2018 (when reporting is finalized).


The next big cyberattack could drive significant new business to VTLR. Cybersecurity companies see dramatically increased interest after highly publicized attacks.

Let me make it abundantly clear that investing in small companies in emerging industries can lead to huge rewards, but carries a certain amount of risk. So be sure to do your own due diligence before making any investment decisions.

Having said that, always remember: I’m not telling readers what to invest in. I’m telling you what I’ve invested in, and why. That’s right…I don’t tell you what to buy…I’m telling you what I’m buying and selling in as close to real time as possible.

I’m in…how about you?

Yours for Wealth,

James West, Contributor
for Investors News Service

P.S. Potential profit opportunities like this don’t come around every day. If cybersecurity companies react to the next cyberattack the way they have in the past, you could possibly see huge profits. My #1 pick is VirtualArmour (VTLR). Take a look at VTLR today!

P.P.S. To discover more opportunities in the hottest sectors in North America, sign up now to the Financial News Now newsletter to get the latest updates and investment ideas directly in your inbox!

SPONSORED ARTICLE: Investing in any securities is highly speculative. Please be sure to always do your own due diligence before making any investment decisions. Read our full disclaimer here.

DISCLOSURE: VirtualArmour International Inc. (OTCQB: VTLR/ CSE: VAI) is a James West/ Midas Letter portfolio holding. James West has not received any payment for the writing of this article.

Published December 2018
Updated January 2019

[1] BUFFETT: This is ‘the number one problem with mankind’, Akin Oyedele, Business Insider, May 6,2017

[2] T Cohen, Microsoft to continue to invest over $1 billion a year on cyber security, Reuters, Jan 26, 2017

[3] S Cunningham, Accelerating Cybercrime Drives Cybersecurity Venture Investment, The Corporate Venture Connection

[4] INTZ, RPD, TMICY, PANW, CYBR, SPLK, FTNT, SAIL through 10/10/18



[7] Hackerpocalypse: A Cybercrime Revelation, Brian Krebs, Cybersecurity Ventures, Aug 16, 2016

[8] [8] Net Losses: Estimating the Global Cost of Cybercrime, Center for Strategic and International Studies, McAfee, June 2014

[9] Estonia: Ground Zero for World’s First Cyber War? Tomek Rolski, ABC News, May 17, 2017

[10] The 9 Biggest Data Breaches Of All Time, Lorenzo Ligato, HuffPost, Aug 20, 2015

[11]More Evidence Points to North Korea in Ransomware Attack, Nicole Perlroth, New York Times, May 22, 2017

[12] FBI Director Addresses Cybersecurity Gathering,, March 8, 2017

[13] As of Nov 27, 2017

[14] As of Nov 27, 2017

[15] Q4 2016: Barracuda Swims with The Sharks; Palo Alto Disappoints; Cybersecurity Market Zooming, Allison Gatlin, Cybersecurity Ventures, March 24, 2017

[16] Steve Morgan, Cybersecurity Ventures predicts global cybersecurity spending will exceed $1 trillion from 2017 to 2021, Cybersecurity Ventures, May 31, 2017

[17] Pressure to deliver new IT projects despite security concerns felt by 80% of IT professionals, Feb 21, 2014,

[18] Cybersecurity: Time for a Paradigm Shift, June 15, 2016, Morgan Stanley in Forbes

[19] 88% Period over Period Growth, VirtualArmour, May 30, 2017


[21] Ibid

[22] Global Network Function Virtualization Market 2016-2020, TechNavio, Oct 2016


[24] Brandon Carter, The Top Ten Benefits of Customer Retention, Access Development, Jun 13, 2017

[25] Tom Dibble, 5 Reasons Recurring Revenue Models Work, Mashable, May 29, 2012

[26] Hacks Push Venture Capital Toward Cybersecurity Startups, Investor’s Business Daily, Feb 8, 2017

[27] C Bing, While startups cashed in, Cyberscoop, Feb 9, 2017




James West

James West is publisher and editor of the Midas Letter, an independent capital markets entrepreneur and investor. He has spent more than 20 years working as a corporate finance advisor and corporate development officer in various industries. James has been a featured guest on Business News Network, CNBC, Bloomberg, Reuters, and as an investment columnist in the Financial Post, where he offered his views on market trends and stocks.