This little bit of news from yesterday.
Nice company for Jaws to be linked with.
Thursday February 10, 9:58 pm Eastern Time
Hacker attack sends Net security stocks to gains
By Susan Taylor
OTTAWA, Feb 10 (Reuters) - A string of hacker attacks that hobbled major U.S. Web sites this week helped lift the stocks of several Canadian security software developers on Thursday.
``Definitely the news about all the hacking has given momentum to those stocks,' said Kama Krishna, senior technology analyst at Sands Brothers Ltd. in New York. ``You can't look at e-commerce without looking at security.'
Calgary-based Jaws Technologies Inc. (OTC BB:JAWZ.OB - news) bit off the biggest gains, with a 25.5 percent rise in its stock. Shares in the encryption software developer added 1-5/8 to end at 8 on over-the-counter trade on Nasdaq.
Jaws grabbed attention last year when it offered $5 million to anyone who could break its software code. Despite the best efforts of hundreds of hackers, the bounty went unpaid.
Stock in Entrust Technologies Inc. (NasdaqNM:ENTU - news) hit a record high of 78 on Nasdaq on Thursday before retreating to end the session at 72-1/2 a gain of 1-7/8.
Entrust sells software used to identify and verify that computer users on the Internet are who they purport to be.
Its stock's closing value on Thursday represents a 53 percent gain over the close of 47-3/8 on January 31. Entrust shares have bounced between a 52-week closing low of 16-14/16 and 73 this year.
Entrust stock has also been buoyed recently by announcements that database giant Oracle Corp. (NasdaqNM:ORCL - news) and smart card developer Schlumberger Ltd. (NYSE:SLB - news) will use Entrust technology.
Analysts suggested momentum in reaction to the hacker attacks may be short-lived.
``It effects the companies in no way whatsoever -- it effects the stock price significantly,' said Duncan Stewart, fund manager at Tera Capital Corp. in Toronto.
``It's like when companies announce that the chairman's dog is named Linux and the stock goes up $20.'
Many of the products of firms whose stocks have gained in the wake of Web site breaches could not have prevented or protected against those attacks, Stewart said.
``Just because you are a security company doesn't mean you have any relevance whatsoever to these hacker attacks,' he added.
``The companies that will benefit from this are names like Cisco (Systems Inc. (NasdaqNM:CSCO - news)) and Nortel (Networks Corp (Toronto:NT.TO - news)) because...the way to make yourself impregnable to these sorts of attacks is to boost your capacity.'
Stock in communications equipment developer Nortel rose 90 Canadian cents to close at C$176.75 on the Toronto Stock Exchange on Thursday.
Among other software security firms, Diversinet Corp. (NasdaqSC:DVNT - news) added more than 8 percent to its stock on Thursday, with a gain of 1-1/2 on Nasdaq to close at 19-3/4. The Toronto-based security software developer specializes in software for wireless electronic commerce.
Toronto-based SLMsoft.com Inc. (Toronto:ESPb.TO - news), which sells payment processing software, added 25 Canadian cents to close at C$7.60. The company bought out floundering Ottawa firewall developer Milkyway Networks Corp. in 1998.
Certicom Corp. (Toronto:CIC.TO - news), best known for sales of its security software to the wireless sector, ran contrary to security sector gains.
Shares in the Toronto area-based firm, which have been on a recent red-hot streak, dipped C$2.95 to end on the Toronto market at C$130.
($1=$1.45 Canadian)
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More Quotes
and News: Certicom Corp (Toronto:CIC.TO - news)
Cisco Systems Inc (NasdaqNM:CSCO - news)
Diversinet Corp (NasdaqSC:DVNT - news)
Entrust Technologies Inc (NasdaqNM:ENTU - news)
Jaws Technologies Inc (OTC BB:JAWZ.OB - news)
Nortel Networks Corp (Toronto:NT.TO - news)
Oracle Corp (NasdaqNM:ORCL - news)
Schlumberger Ltd (NYSE:SLB - news)
SLMsoft.com Inc (Toronto:ESPb.TO - news)
Related News Categories: Canadian Market News, US Market News |
