Blog - MicroStockProfit

There are nearly one billion PC's in the world today, or about one for every seven people. (Considering the fact that a quarter of the world does not have electricity, this statistic becomes that much more powerful.) The computer - with the help of a little thing called the Internet - has shed light on a whole new dawn of crime.

Spyware Infects 80% of PC's

A recent Microsoft study found that 50% of all computer crashes are due to Spyware, while Dell has reported that 20% of all tech-support calls involve the pesky nuisance. To throw some more gas on the fire, research also indicates that as high as 80% of all personal computers are infected by some type of spyware.

This has no doubt sparked a massive increase in demand for capable solutions, but they remain hard to come by judging by the sheer number of PC's that continue to fall victim to malicious attacks.

Growing revenues in each of the past 4 quarters, Enigma Software Group Inc. (OTCBB: ENGM) has established itself as a winner in the anti-spyware market through the success of their SpyHunter product. Spyhunter which sells for about $30, will force Boris and Natasha to find a craftier way to crack into our computers.

Enigma is one step ahead

On a serious note though - the real value here, and what has driven significant subscriber growth for the product since its inception, lies within the program's database. Enigma's tech staff is responsible for analyzing security threats and quickly finding solutions. This is critical as spyware becomes both more prominent and increasingly sophisticated, seemingly by the day. More importantly, just as spam evolved from a techie term to a daily nuisance, Spyware is becoming a similarly infamous household name. The fact is, the problem long proceeded consumer awareness of it.

By taking a two-pronged approach and responding to customer queries regarding new potential breaches and making a concerted effort to identify and eliminate all new possible spyware threats, ENGM has been able to consistently increase substantial share in its core market (approximately 2500-3500 units per week).

Numbers Don't Lie

For those of you unfamiliar with the term, Spyware, as defined by our good friends at Wikipedia, is "computer software that is installed surreptitiously on a personal computer to intercept or take partial control over the user's interaction with the computer, without the user's informed consent."

That sounds bad, right? But what's worse is that Spyware is often a culprit in such rosy occurrences as online identity theft (U.S. consumers lost $56.6B in '06 to identity fraud) and hard drive infection.

Suavely designed programs hi-jack our user names, passwords, personal information, and online browsing logs. Believe it! Damage is being done right now. The threat is clear and imminent; with Gartner projecting that "financially motivated targeted attacks using undetectable professional-grade malware are projected to have infested 75% of enterprises by the end of 2007". If that's not bad enough, Consumer Reports State of the Net 2007 piece reveals that spyware infections forced 850,000 U.S. households to replace their PC's, resulting in damages totaling $1.7 billion.

So, in theory, there's a $30 billion market for Spyhunter today. A number some expect to double by 2015. With malicious technology development advancing rapidly, the need for real-time tech-support and progressive spyware solutions such as those offered by Enigma Software has never been greater.

With shares trading at the lower end of their 52-Week range ($.13 - $.65), even after a nearly 80% run on Wednesday; investors are anxiously awaiting additonal communication from management other than subscriber growth updates and SEC filings.

Judging by the trading activity of ENGM, investor interest continues to remain high despite a lack of major news. One major announcement could be all it takes to launch ENGM into the range a frontier internet security company of this caliber belongs in. And when it does, $.23 or so is a decent entry point.

Labels: Engima Software Group Inc., ENGM, Enigma