Long Position on VDSI @ $26.50 on 7/24/2015 (Momentum)

200-day MA Support on VDSIVASCO Data Security International (VDSI) designs, develops, markets, and supports hardware and software security systems that manage and secure access to information assets worldwide.

The company offers VACMAN Controller, a host system software authentication platform that combines technologies in one platform; IDENTIKEY Authentication Server that adds server functionality to the VACMAN core authentication platform; DIGIPASS as a Service, a cloud-based authentication service primarily for enterprise customers; and MYDIGIPASS solutions for end user authentication in the cloud.

It also provides IDENTIKEY Appliance, an authentication solution that offers two-factor authentication for remote access to a corporate network or to Web-based in-house business applications; IDENTIKEY Virtual Appliance, a virtualized authentication appliance that secures remote access to corporate networks and Web-based applications; and IDENTIKEY Federation Server, a server appliance that provides an identity and access management platform.

In addition, the company offers DIGIPASS Hardware authenticators to support authentication and digital signatures for applications running on desktop PCs, laptops, tablets, and smart phones; DIGIPASS Software authenticators, which provides customers with security for access to their networks and applications without having to carry a standalone hardware device; and DIGIPASS for Apps, a software development kit that allows developers to integrate application security, such as two-factor authentication and electronic signing into mobile applications.

Further, its products provide calculate dynamic passwords that authenticate users logging onto networks or other applications. The company sells its security solutions through its direct sales force, distributors, resellers, and systems integrators.

Shares have pulled back to their 200-day moving average on news that some of the company's products were sold to Iran against the sanctions in place. The firm is scheduled to report its quarterly results on July 28th. We expect shares to find support here and head higher into the earnings report.

 

52-Weeks Trading Range: $12.86 - $35.00

Entry Point: $26.50

Stop Loss: $25.15

Target Price: $29.20

 

Updates

7/29/2015 11:15:39 AM

VDSI closed at $22.

Position closed on 7/29/2015 at price of $22.00 with a -16.98% loss in 5 days.

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