Major Telco to Topple Dropbox

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    11/11/2014

    Major Telco, ex-FBI Assistant Director and Founding Skype Investors Back ASX Stock to Topple Dropbox



    This stock could make the use of Dropbox within corporations and Government agencies obsolete.

    Dropbox is valued at around $10 billion... so we don't need to emphasise just how big the dollar value of this market space is.

    The stock is called Covata Limited (ASX:CVT), and we think its disruptive, all-in-one data security technology is going to take the world by storm.

    CVT management know how much their technology is worth, and they have plans to turn Covata into a technology giant. Directors have even stated their intention to "get that stock price up substantially" before taking it to NASDAQ, for a much higher valuation again.

    The top 20 hold 60%. Its the #1 holder that is particularly telling - TPG Telecom (ASX:TPM). TPG is capped at $5.8 billion, and is also a CVT customer... so they know first hand just how valuable CVT's encryption technology is.

    TPG stumped up $10 million at 20c per share for its 15% stake... CVT is currently trading at 19c. But we think it could be fetching almost 50c by Christmas.

    CVT encryption technology protects data wherever and whenever it travels. It encrypts and protects the data itself, rather than trying to protect the device or system or application that contains the data.

    This makes sense, as the only reason devices need protecting is to protect the data stored inside.
    Covata technology provides a way to protect data whether it is inside so-called "safe" networks or whether it is outside on open networks or on mobile devices.

    It also allows a federal government, financial corporation or a defense agency to use its own keys rather than those provided on devices by manufacturers.

    The technology is just not a piece of software... it can actually be embedded in other pieces of software.
    One of Covata's lead products is called SafeShare, and will operate in the file and data sharing along with Dropbox, the current market-leader.

    However, Dropbox suffers from known security issues which have not been resolved.

    Covata has incorporated its proprietary encryption technology into its own data and file sharing app, creating a superior, completely secure way to
    transfer information.

    We can see SafeShare the app taking significant market share from the $10 billion incumbent, and that is only the very start of this company's revenue potential.

    Covata's tech could become "standard issue" in thousands of billion dollar applications and software systems.
    We think Covata may become the digital equivalent of Intel.... "Intel Inside" is the well known slogan that identifies Intel's leading hardware in millions of devices.

    Think Gmail, Facebook, Hotmail, Skype, currency and crypto-currency exchanges, and an endless list of other systems and applications.

    Covata inside these and other software applications from global technology giants could come to be seen as a necessary stamp of approval for the security of the data contained within.

    Big Name Management with Skin in the Game

    Aside from TPG there is a heavyweight cast of directors and investors that are backing Covata in a big way.

    Covata CEO is Chuck Archer Charles, former Assistant Director of the FBI in charge of the Criminal Justice Information Services Division, managing 3,000 employees and overseeing 600 contractors.

    He was appointed by the US Attorney General to SES-6, the highest civil-service rank in the US Government, and frequently testified before the US Senate on advancing technology to prevent crime.

    Director Joe Miller has been Managing Director at Europlay Capital Advisers since 2003, which led the first round investment in Skype, and proceeded to sell it to Ebay for over $2.6 billion.

    Europlay then orchestrated Skype's buyback from Ebay, before selling it again - this time to Microsoft for $8.5 billion in 2011.

    Another Director, Kevin Bermeister, is currently Chairman and CEO of Brilliant Digital Entertainment, and was also a founding investor in Skype.

    Covata clearly has the firepower to create another tech giant - they have done it all before with Skype.

    http://http://blank.org/.com/covata.html
 
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