Strikeforce Technologies Inc (OTCMKTS:SFOR) Is Finally Perfectly Positioned For Growth

Strikeforce Technologies Inc (OTCMKTS:SFOR) is down nearly 60% on its October highs, but having run up throughout the majority of the third quarter this year, it's still a large gainer year to date. The correction over the last week or so might be a nice opportunity to pick up a discounted exposure, ahead of a return to the upside momentum that carried the company to the above mentioned highs.Here's what we are basing our thesis on.Strikeforce is a cyber security company. It's got a suite of three primary products – ProtectID, GuardedID and MobileTrust. The latter two are similar to one another, at least in concept. They both protect devices against a range of potential threats – keystroke logging, password hijacking, clickjacking, that sort of thing – with GuardedID applying these security measures to a laptop or desktop, and MobileTrust, as the name suggests, doing the same for mobile devices. According to management, in a recent interview, the MobilTrust product is the only product on the market that provides key log protection for Android and iOS devices. That in itself is a huge selling point, and one we'll come back to shortly.The ProtectID product has a host of satellite features, but its primary feature, and the one that we think is going to drive value going forward, is its out of band authentication (OOBA). Readers will probably be familiar with OOBA, if not in name then at least in practice – it’s the use of a device to authenticate login attempts. An example being when a bank sends a user a text message with a code of number that he or she then needs to enter to log in to their accounts online.ProtectID provides the functionality for this service and Strikeforce owns the patent for the process. It asserts that a host of companies are infringing on this patent (the company won a suit against Microsoft Corporation (NASDAQ:MSFT) earlier this year) with a number of ongoing litigations currently active. These suits should provide a good revenue stream going forward, outside that of the company's core retail operations.So why are we bullish?Well, Strikeforce has essentially spent fifteen years getting to the position in which it finds itself today. To date, success has been slow, but cyber security is becoming a behemoth industry, and fifteen years in to its efforts Strikeforce finds itself in exactly the right place, at what looks to be exactly the right time.Out of band and key log guarding have both become buzzwords on both a commercial and a private level over the past twelve months or so, and Strikeforce's products serve to meet what is essentially brand new demand. The cybersecurity market is estimated to grow from $122.45 billion in 2016 to $202.36 billion by 2021, CAGR of 10.6% across the period.It's not just predictions, either.The company has started to grow its topline through pushes across a number of different fronts, expanding the user base of its products. Fourth quarter 2015 saw revenues of a little over $50K. This expanded to $83K during the first quarter of 2016, and again to $127K during the second quarter. Cash on hand came in at $1.6 million at the end of third quarter. The company owes no one any cash and there is a small number of preferred shares outstanding that won't have any material impact on capital allocation. In other words, as the capital flows in, Strikeforce management has sole discretion as to its appropriate allocation.The situation can basically be summed up like this: Strikeforce has coasted for a considerable amount of time with products that are some of the best available in their spaces, but up until the last twenty-four months or so, said space hasn’t been that extensive. This has changed, however, and the company now finds itself perfectly positioned to cater to its target cyber security niche. Revenue growth supports this suggestion, and we expect to see a continuation of this growth trend for the foreseeable future. Litigation revenues look set to bolster bottom line on an ad hoc basis, and should serve as upside catalysts as and when they come in to both offset any dilutive value loss and – in turn – negate the potential need for a reverse split near to medium term.We will be updating our subscribers as soon as we know more. For the latest updates on SFOR, sign up below!Disclosure: We have no position in SFOR and have not been compensated for this article.