Cerberus Cyber Sentinel Corp. - CISO
Quick Take
I was thinking of turning this into a somewhat longer spiel, but the tiny float and limited liquidity outweighed the bloated market cap and crappy underpinnings of their offering. Cerberus Cyber Sentinel (CISO) is another wonderful deal foisted upon the investment world by the folks over at Boustead Securities, who brought us recent spiels PETZ and FCUV and older spiels HLG, ADOM, and CIFS. The IPO on January 14th was only for 2M shares out of a total of maybe 135M outstanding, and of those 2M shares in the IPO either related parties or agents of related parties wound up buying a decent chunk of the stock, reducing the float even further. The CEO of the company, one David G. Jemmett, owns about half of the company’s shares, and other insiders own pretty much the rest of it. If they ever start to bail out, that will be the time to take a closer look. David Jemmett himself has been working under Dr. Patrick Soon-Shiong for the past decade or so. Mr. Soon-Shiong has been giving the short community fits for years, and made his fortune in biotech and currently heads up a dozen or so Nant-related companies (NantCloud, NantWorks, NantCapital, etc…) along with the LA Times and publicly traded IBRX, which went on something of a COVID ride before falling back to earth. Anyways, CISO takes it’s ticker symbol from what they purport to do, which is enhance the security offerings for the world’s Chief Information Security Officer’s. They came public doing maybe $15M a year in revenues, but to get themselves primed for an IPO, they went on an acquisition splurge and purchased a few companies leading up to it. After making a couple of purchases in October and November, the company announced the acquisition of Arkavia Networks of Chile followed by the January acquisition of True Digital Security, at which point the company announced that trailing revenues were now up to $45.5M, making that $800M market cap seem a bit less nutty. Should this thing ever offer a decent secondary or if insiders from acquired companies start to offer up their shares, I may decide to make some additional comments.