2022 has proven a volatile year for HUB Security investors, and not for the reasons dragging down the tech industry at large. Back in March '22, HUB (now listed on TASE) announced the closure of a SPAC agreement with RNER for a Q3/4 NASDAQ listing. After an astronomical rise to over 900ILA from ~380ILA at the start of the year, the stock took a nosedive to a YTD low of 261LA in early May. Investor jitters over the SPAC deal, the global pullback of the tech industry and stocks, and a worsening macro-economic backdrop overall were the main drivers of this see-saw motion over the past 6 months.
Things are looking quite a bit greener this past month--June 2022--as HUB has regained its footing and is currently tracking a highly-encouraging uptrend. From its May 12th yearly low, HUB has climbed to over 600ILA and counting. Meanwhile, the rest of the market is getting clobbererd--as you can see, QQQ and leading cyber ETFs like CIBR and BUG are all down around 4-5% in the past month. Similarly, two of HUB's closest peers in the confidential computing sector--PANW and FTNT--are also down about 2%. Though confidential computing seems to be outperforming tech/cyber as a whole, the niche is still in the red amidst rising turbulence on global equity markets. So what is behind HUB's recovery and recent gains?
I added HUB to my watchlist back in March following their SPAC deal, and have been closely watching as their SIR inched upwards MoM. HUB's SIR moved from 0.48 on May 12 to 0.84 on May 19th and then 0.82 on May 26th. That means >80% of trade volume was dominated by short activity. The company has clearly been making moves to combat malicious shorting, including the company's announcement of intention to buy back $4.5M USD worth of shares in order to force the shorts to cover. On June 9th SIR had been driven back down to 0.48, helping to explain the early-month momentum. While SIR had jumped back to 0.7 as of June 16th, it looks like the bulls had already established some upward momentum. HUB SP has increased by more than 50% in the past week alone, strongly suggesting that investors are trying to establish positions in anticipation of the value multiplier shareholders will enjoy come the NASDAQ listing.
I will be interested to see how HUB's SIR looks on June 23rd, but higher-than-average trade volume and a month-long uptrend (see PVT, 30D MA shown on chart) are signs that despite the worsening economic picture on a macro-level, HUB is trading strong and girding for success on US Markets.
Things are looking quite a bit greener this past month--June 2022--as HUB has regained its footing and is currently tracking a highly-encouraging uptrend. From its May 12th yearly low, HUB has climbed to over 600ILA and counting. Meanwhile, the rest of the market is getting clobbererd--as you can see, QQQ and leading cyber ETFs like CIBR and BUG are all down around 4-5% in the past month. Similarly, two of HUB's closest peers in the confidential computing sector--PANW and FTNT--are also down about 2%. Though confidential computing seems to be outperforming tech/cyber as a whole, the niche is still in the red amidst rising turbulence on global equity markets. So what is behind HUB's recovery and recent gains?
I added HUB to my watchlist back in March following their SPAC deal, and have been closely watching as their SIR inched upwards MoM. HUB's SIR moved from 0.48 on May 12 to 0.84 on May 19th and then 0.82 on May 26th. That means >80% of trade volume was dominated by short activity. The company has clearly been making moves to combat malicious shorting, including the company's announcement of intention to buy back $4.5M USD worth of shares in order to force the shorts to cover. On June 9th SIR had been driven back down to 0.48, helping to explain the early-month momentum. While SIR had jumped back to 0.7 as of June 16th, it looks like the bulls had already established some upward momentum. HUB SP has increased by more than 50% in the past week alone, strongly suggesting that investors are trying to establish positions in anticipation of the value multiplier shareholders will enjoy come the NASDAQ listing.
I will be interested to see how HUB's SIR looks on June 23rd, but higher-than-average trade volume and a month-long uptrend (see PVT, 30D MA shown on chart) are signs that despite the worsening economic picture on a macro-level, HUB is trading strong and girding for success on US Markets.