INTZ - Embedded Expectations Analysis - 2021 04 09
Intrusion Inc. (INTZ:USA) currently trades well above historical averages relative to UAFRS-based (Uniform) assets, with an 18.1x Uniform P/B. At these levels, the market is pricing in expectations for profitability to inflect positively, but management may have concerns about Shield's capabilities, limited company resources, and the potential for large client winsSpecifically, management may be overstating the corporate cybercrime prevention capabilities of Shield and their ability to service multi-tenant cloud clients. Furthermore, they may have concerns about the progress of Shield enhancement developments, their lack of advertising spends for Shield, and the limited resources of the company. Moreover, management may be exaggerating the prevalence of malware attacks and data breaches as well as their opportunities to capitalize on increases in the federal cybersecurity budget. Finally, they may have concerns about the progress of their transition to a commercial solutions business, the length of products sales cycles, and their ability to win large clients
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