WORLDFLIX INC. (OTCMKTS:WRFX) has not lived up to expectations, even on capturing the attention of software companies with innovative Cybersecurity solutions. However, the stock has not underperformed either, as it has remained in the same trading range from our previous analysis.
What has changed from our previous analysis is trading volume, which has spiked to new highs, an indication that the stock could bounce back after one of the worst runs. In our view, the stock remains well positioned to trade higher as its software subsidiary Paranotek continues to elicit strong interest from leading industry experts, setting the stage for a potential dollar revenue roadmap.
The stock is currently languishing at the $0.0008 handle, after being in consolidation for the past six months. Over the last 12 months, the stock has lost nearly 90% of its total market value and in dire need of new catalysts if it is to bounce back.
Before we make the case on why we remain optimistic about the stock’s long-term prospects let us first understand, what WorldFlix does in pursuit of growth and shareholder value.
WorldFlix is a diversified company, operating in a variety of niche businesses. In the entertainment sphere, the company identifies, develops produces and distributes feature films and television projects.
In the technology sphere, the company operates AppFarm, a platform for acquiring and developing niche apps for mobile and tablet devices.
Paranotek, the company’s Cybersecurity software subsidiary, is the center of attention, and one of the reasons why we remain upbeat about the company’s long-term prospects.
The unit is focused on the development and licensing of robust technologies for increasing personal and corporate information privacy.
Paranotek Aim at Multi-billion Dollar Security Industry
In what is seen as an attempt by WorldFlix to take aim at the multi-billion security industry, the company unveiled Swanlock child protection app on Google Play late last year. The app seeks to curtail smartphone overuse among children by setting timeouts which are accompanied by photo messages explaining why the timeout is necessary.
The app features include remote text and messaging monitoring capabilities as well as remote device tracking and locking. WorldFlix followed the launch of the app with the unveiling of a leading edge encrypted security backend for managing all the security of Swantry and Swanlock.
“The security protocol is so advanced and robust that we quickly realized the protocol in and of itself was a very valuable asset and offered an opportunity to capitalize on the multibillion dollar security software market,” WorldFlix in a statement.
The two solutions have already elicited keen interest from world-class Cybersecurity talent as well as global security industry leaders, most of whom have shown interest in licensing the software.
The company is currently in discussions with potential partners as it looks to generate value from its innovation.
“We are pleased with where we are positioned as the year comes to a close and are excited about the prospects for 2018,” said Brad Listermann, Chairman and CEO of WorldFlix.
Advanced Security Technology
WorldFlix is especially bullish about its growth prospects in 2018, on the fact that it has an advanced encrypted security technology that is ten years ahead of what is currently in use. The technology can also be relied upon to defend against future supercomputing technology.
The company has also designed and prototyped a post-quantum encryption solution that meets the security challenges of today as well as those expected in the future. The tools are designed to enable organization overcome role-based security incompatibilities between vendors and data providers.
In addition to unveiling new Cybersecurity products, WorldFlix has been aggressive on poaching top talent to further strengthen its development efforts. Dr. Ron Petcock is the latest addition to the company. He joins the company with vast experience when it comes to international sales and Cybersecurity.
2018 Positive Outlook
Another reason to be bullish about WorldFlix has to do with the fact that it is in the process of transitioning into a revenue-generating entity. The company’s development team is in the process of completing a revenue-producing custom application with a U.S based customer.
The executive team has also opened discussions with potential clients on possible partnerships and licensing opportunities that look set to generate much-needed revenues.
One of the companies that WorldFlix has opened discussions with is a major software company, serving aged care, education and dementia market.
WorldFlix through its Paranotek subsidiary also plans to expand its products and revenue generating items to include consumer apps available in Android and iOS platforms.
Privacy is set to become a real commodity, given the Cybersecurity threats that continue to get out of hand. WorldFlix remains well positioned to take advantage of the emerging opportunities as people look for solutions to keep crucial data and their privacy out of reach.
Large market participants taking note of the company’s Cybersecurity solutions is an indication that they are up there, with what people have been using. That said, the company is on the brink of generating significant revenue from its privacy solutions, one of the reasons why it remains a top pick in the space.
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Disclosure: We have no position in WRFX and have not been compensated for this article.