#2 Identillect Technologies Corp. ( TSXV: I D ; IDTLF : US )
This is a little-known company sitting in pole position in a $64-billion market that is up for grabs. It's come up with a two-minute email security solution that could revolutionize encryption, and could corner the lion's share of the profits in this segment.
Half of all email is unencrypted, and it's at the mercy of pretty much anyone with decent hacking skills. Existing encryption programs are expensive and can take a month to install, but this company is breaking onto the scene with a simple, 2-minute email install solution.
It works with Outlook, Office 365, Hotmail, Gmail, plus a phone app that works on iPhone, Android, Windows and more.
There are only 250 professional cryptographers in the U.S and two of them work at Identillect - a major selling point for this company coming right out of the gates.
Customers are lining up because it's the first solution to a long-time problem that's now reaching a climax, with companies being fined for not encrypting email. They're already paying an average of $7 million for every data breach.
This company is on its way to Silicon Valley, and its patent on the first easy solution to a massive problem is likely to get it a lot of attention in the form of M&A rumblings that dot this cybersecurity landscape. Even more so right now.
Since it went commercial in the first quarter of 2015, subscribers have grown over 663 percent, and 19 out of 20 of them stay. They're compounding monthly, and the breakeven point is almost there. That's why we're looking at a 70 percent profit margin in this one.
With 5 million Yahoo accounts breached in just one of many huge-scale incidents, encryption is the Holy Grail of our day, and this company has figured out how to make it cheap and easy.
