Our Stock of the Week is Alarum Technologies (ALAR). ALAR is an Israeli-based company that provides software services. What is of particular interest is that AI data collection tools that are used to train Artificial Intelligence. NetNut can be used to anonymously surf the internet and collect data used by large language models that train AI. More details about the technology can be found here.
ALAR is a small company with a market cap of just $140 million. There is only one analyst currently following the company, so it is relatively unknown. However, the quick growth in revenues proves that the company offers something of special interest.
In 2023, the company grew revenues 43% to $26.5 million. In the fourth quarter of 2023, revenues jumped 39%, but, more importantly, it was the second consecutive quarter of profitability with net income of $1.7 million or $0.30 per share.
On April 8, the company announced that first-quarter revenues will grow nearly 50% over last year to $8.3 million and that it will have cash flow of $3.2 million compared to a loss last year. The company states that its Web Ublockerr production is growing very quickly.
Technically, the stock has been in a steady uptrend since December 2023 and is currently extended. It spiked higher during the first quarter's preannouncement and is now pulling back to support levels. We will look to take advantage of weaknesses before the actual report, which will likely be released in May.
As always, we will not chase the stock on Monday morning but will look to aggressively trade it as it develops.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and buy or sell anytime for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing positions in ALAR. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.
