MGT Capital Investments Inc (NYSEMKT:MGT) Isn't Slowing Down

MGT Capital Investments Inc. (NYSEMKT:MGT) just announced the commercial launch of its Sentinel technology, and the company is up double digits – yet again – on the back of the news. This company has its critics, and plenty of them, but there seems to be very little understanding of exactly what McAfee and his team are doing/have done, and where the company is headed long term.Take the latest Sentinel announcement as an example.Shorts are out in force suggesting that the technology doesn’t even exist, never mind whether it's any good or not, and that it is just another unsubstantiated press release designed to underpin a future raise, or the dumping of some shares into an announcement derived market.The company is under SEC scrutiny, it's proposed CEO just had a documentary put out about him in which he was described as a rapist and a murderer and countless lawsuits pertaining to support shareholders in class action suits against MGT are circling.All this is noise, in our opinion, and what the company is working towards is far more important than these short term biases claiming MGT is a scam.The company acquired the technology that underpins Sentinel from a company called Cyberdonix back in July. Cyberdonix created the hardware, and went on a small PR push earlier in the year, appearing on a few local news channels and awarding what at the time was referred to as a $17.2 million manufacturing contract to an Alabama based company called Global Manufacturing.That was in March.Fast forward a few months, and the company sold the technology to MGT, taking 150,000 restricted shares as consideration for the asset transfer. Now, the important thing to recognize here is that this technology is very different from anything else that's out there. Normal security infrastructure calls for either IPS or IBD installations, both of which are modem side of the firewall in the network in question. More importantly, both of these technologies monitor a network for threats retroactively. Sentinel is router side, and it tracks threats as they enter a network. It notifies an administrator when it picks anything up, and then actively tries to mislead the intruder using honeypots, buying the administrator time to ringfence the infected element, respond or whatever they feel the most appropriate response may be. This is a much needed tool, and we think If another company was bringing it to market there would a considerable amount of positive attention flowing its way.It seems as though McAfee's involvement with MGT has almost had the opposite impact it was intended to have. Yes, MGT got a boost back when the announcement first hit – with McAfee almost synonymous with cyber security, this was a sure thing – but since, markets have tended towards doubting his credibility and – in turn – that of MGT.Our takeaway is this. This is a tough industry to grasp. The technologies being created, sold etc. are beyond the comprehension of a large portion of the investment public, and this breeds skepticism. Throw bitcoin, and hackers as CTOs, in to the mix, and skepticism turns into outright disbelief. Add McAfee to spearhead this brand, and the disbelief has something to target. In reality, however, there looks to be a very promising technology underpinning what is essentially a technology startup with multiple shots on goal.There's a strong team of experts in their respective fields steering the ship, and while they may not be suit wearing C-suite types, (Erik Vorhees and Roger Ver, Cryptocurrency; Eric Anderson, CTO; Nolan Bushnell (Atari Founder), Independent Director; Bryan Seely, Advisory board) these are not individuals that would get tied up in a company that had no potential for disruption and/or growth.The shorts will continue to weigh on sentiment, and excessive scrutiny will likely maintain a negative light on MGT, but we think there's huge potential for disruptive growth medium to long term, and we're maintaining our bullish bias going forward.Subscribe to our newsletter below and we will keep you updated as MGT and McAfee offer clarification as to the next steps for the company.Disclosure: We have no position in MGT and have not been compensated for this article.