At time of writing the Tesserent Ltd [ASX:TNT] share price trades at 35.50 cents down 1.39%.
TNT recently announced year-on-year growth in excess of 135%.
Source: Optuma
The growth of Tesserent
Tesserent is one of the country’s largest cyber security companies.
Throughout 2020 they made a series of acquisitions and management appointees.
We covered the progress of the company throughout the year.
Coming up to year-end, the moves look to be paying off.
In October, Tesserent announce they were acquiring North Security for $5.3 million.
At the time the standout point of the acquisition was the strong portfolio of government contracts held by North Security.
The acquisition proved to be a wise move.
Tesserent recently announced that North Security had an increase in earnings from $766K in FY19 to $1.8 million in FY20.
Representing over 135% growth.
Tesserent’s co-CEO Julian Challingsworth mentioned:
‘We are extremely pleased to announce that our Canberra team, has been a significant contributor to Tesserent’s overall market performance.
‘2020 has seen the Company’s enterprise value and share price increase exponentially.’
Will Tesserent Continue to grow?
In August, PM Scott Morrison announced an increase in spending for federal government cyber security.
Coupled with Tesserent’s strong reputation in the Canberra market, this should see growth continue.
Looking at the chart, from the low in March, the share price rose over 1,320% to where it trades at time of writing.
Source: Optuma
Recently, the price fell back from the all-time high set in October.
If the fall continues then the levels of 34 cents and 29 cents may provide future support.
If price moves to the upside, then the level of 42 cents may be enough to halt the rise.
Tesserent went on a bit of a shopping spree this year, taking in no less the five companies under their ownership.
Currently holding a market cap of $302 million and aiming for $100 million in yearly revenue, things look good for TNT as the global market for cyber security is expected to raise $270 billion by 2026.
In the short term the share price may be due for a pull back.
The last six weeks of trading took place on declining volume.
After after such a large rise in price, it may need to come back down to get ready for the next run up.
Tesserent looks to be a good shape for a future watch list.
Our publication Money Morning is a fantastic place to start on your investment journey. We talk about the big trends driving the most innovative stocks on the ASX. Learn all about it here.
Regards,
Carl Wittkopp
For Money Morning
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