Cyberlux Corporation’s (OTC: CYBL) current share price can be described in two words- ridiculously undervalued. And that includes after its more than 36% spike since the start of the month. It even gives credit to CYBL’s ability to decouple from the broader market weakness, noting CYBL’s jump comes when bearish conditions continue to ravage investor portfolios. And the better news is that there is still another value-enhancing arrow in the quiver. Bullish technicals.
There, CYBL stock appears to be gearing up to attack resistance at the $0.02 level. After a successful breach at that level, its 52-week high of $0.07 is likely its next target. And that could happen faster than many think, especially with its PPS surge supported by a sharp increase in volume. Over the past two weeks, daily dollar volume has regularly exceeded the $1 million range, with shares worth more than $5 million trading hands at its busiest. In addition, ask size lots have been decreasing in size, suggesting that if there was a particular seller adding downside pressure, that wall might be starting to crumble. That’s, of course, excellent news for those on the long side of the trade. It’s good for those considering as well.
Moreover, following a bullish presentation from its CEO at the Emerging Growth Conference coupled with an understanding of how CYBL’s assets combine to put CYBL in its best operating position ever, it may be a while before the CYBL bulls relinquish control of the reins. Trading into the end of last week supports that assumption.
Best of all, the month-to-date surge is well deserved.
Acquisitions And Organic Growth Warrants PPS Surge
Not only that, there is plenty of CYBL generated firepower to justify significantly higher prices. And recent coverage of CYBL’s 2021 acquisitions does an excellent job of explaining why CYBL is better positioned today to drive record-setting revenues than at any time in its history. In fact, CYBL is bullish, too, raising its 2022 guidance, telling investors to expect upwards of $44 million in revenues this year, up 47% over its prior $30.5 million guidance from 2021. Likely, that’s a result of acquisitions performing as good or even better than expected.
One, in particular, Kreatx SHPK, is a sure value 2022 driver. Kreatx is a developer of innovative software solutions, and the acquisition brings Kreatx’s extensive knowledge and experience in building SaaS solutions and end-user applications to the CYBL revenue-generating pipeline. Moreover, it’s expected to immediately support Cyberlux in making end-to-end SaaS offerings that see an exponential increase in demand from global governments and commercial customers. In an update, Cyberlux noted that the transaction also adds to the foundation of its Cyberlux Infrastructure Software Solutions (Cyberlux ISS) business unit and accelerates the Cyberlux strategy to monetize its new Cyberlux Digital Software Platform, a core business growth strategy in 2022.
The better news- clients need what CYBL is selling. That’s because despite everyday consumers walking around with a seamless and powerful communications device in their pockets, that’s not the case for businesses and governments. In fact, it’s fair to say that they have been slow to change. Still, don’t blame a lack of foresight. Instead, understand that transforming a massive structure isn’t easy. And when thousands of offices are involved, as is the case with governments, the task to implement efficient change is monumental. But, their challenges are CYBL’s opportunities.
Cyberlux’s Digital Platform Solutions Drive Value
And they have the assets to meet them head-on. Moreover, they prove that its digital services platform does more than create a means to communicate effectively; it also accelerates clients’ competitiveness by enabling new delivery channels and integrating separate business models. Cyberlux’s products aren’t a one-size-fits-all proposition, either.
On the contrary, CYBL’s solutions are client-specific and are especially valuable to clients needing multiple areas of platform functionality. Its Marketplace solution, for instance, enables clients to leverage customized services allowing them to catalog and manage third-party suppliers. Its Services Automation focus orchestrates client-specific processes and workflows to drive efficiencies of scale. And its Low-code development solutions enhance client business and IT collaboration by leveraging visual development and reusable components to build and modify processes, workflows, and business apps. Of course, tying all of it together is an Integration solution that joins all disparate enterprise data enabling better decisions and experiences for employees and customers.
How substantial is the CYBL opportunity? Well, in a word, tremendous. Combining the sum of its marketable solutions, CYBL is targeting a more than $813 billion global revenue-generating opportunity. And with CYBL Digital Platform Solutions capabilities able to provide comprehensive and much-needed technology updates to government and industry, capturing a significant part of that massive market is certainly within near-term reach.
Keep in mind CYBL already does business with major government offices, including the DoD, which has little time to waste to integrate systems allowing for seamless digital processes. And while CYBL may target different sectors with other business solutions, CYBL’s established vendor footprint positions them ideally to earn significant contracts and leverage a competitive advantage over companies trying to gain new business, or for that matter, get an introduction.
Moreover, while some companies may be able to find niche opportunities, CYBL offers a comprehensive suite of services. That’s important since its system works seamlessly with its own modules. That means whether clients need more efficient cloud computing, big data and analytics, cybersecurity, artificial intelligence, or a more robust Internet of Things (IoT) platform, CYBL can handle the load. It’s a competitive advantage that is already flexing its revenue-generating muscle.
And while its DPS business segment is expected to be a massive value driver this year, don’t underestimate its other units.
Cyberlux Value Drivers Beyond DPS
They, too, are generating significant revenue-generating traction that brings multiple other revenue-generating shots on goal across industries. Those value drivers include monetizing its interest from a stake in advanced unmanned aircraft systems (UAS), LED lighting solutions, renewable energy and infrastructure technology, and Software-as-a-Service (SaaS) solutions. Not only that, CYBL is an active Department of Defense (DoD) contractor providing leading-edge, battle-tested lighting solutions to the U.S. Air Force, National Guard, Special Operations Command (SOCOM), and the U.S. Army. Those interests are worthy of attention. And deservedly so.
Between its FlightEye UAS solutions and its Infrastructure Technology solutions focus, CYBL targets a more than $171 billion global revenue-generating opportunity. Then factor in another $3.7 billion in play from its Advanced Lighting Solutions business focus and the current market opportunities, not even accounting for expected double-digit percentage growth in each, makes CYBL investment consideration more than an attractive proposition; it makes them a compelling one.
Keep in mind, too. CYBL isn’t at all lacking in optimism to earn its share of those billion-dollar markets. As noted, CYBL increased its revenue guidance for 2022 by 47% to $44.8 million. But, based on the needs in play and with another acquisition said to be in the queue, even that bullish guidance may be conservative. Hence, CYBL stock is not only at bargain-basement prices; its disconnect from fundamentals is simply too wide to ignore.
A Great Story With Strong Growth
What’s more, CYBL’s current share price doesn’t do justice to even a single contributing asset from its business portfolio’s intrinsic value, let alone the inherent value over the next several years. In fact, with the billions of dollars worth of combined contracts available, any of its operating division’s potential, even if they earned just 1% of their potential, would dwarf its current $0.015 share price. But, since they have several diversified shots on goal and already being a vendor in several key sectors, dwarfing its current price should come with a multiple. Thus, don’t let its share price fool you into thinking CYBL is reasonably valued. Far from it.
But the gap between its current and a more appropriate valuation may get filled sooner than later. And doing its part to expedite that cause, CYBL is accelerating its mission to help usher in the digital transformation evolution across industries. That focus includes tapping into the revenue-generating potential from, as noted, advanced unmanned aircraft systems (UAS), LED lighting solutions, renewable energy and infrastructure technology, and Software-as-a-Service (SaaS) solutions to U.S. government agencies, commercial markets, and international opportunities.
And they aren’t new to the game. CYBL has provided leading-edge, battle-tested lighting solutions to the U.S. Air Force, National Guard, Special Operations Command (SOCOM), and the U.S. Army for more than a decade. Currently, CYBL is part of the supply chain to fortify the DoD with lightweight, portable battery-powered advanced LED lighting systems for special operators, forward-base operations, security, and maintenance lighting.
In fact, after completing consumer product trials, CYBL is better positioned than ever to focus on providing the DoD with specialized lighting technology and serving the military, first responder, and certain commercial markets with its innovative BrightEye Tactical Lighting System products. Growth in that segment expedites CYBL’s intention to become the trusted provider of advanced lighting solutions worldwide to government and military organizations.
More Acquisitions, More Revenue-Generating Firepower
There’s more to like. CYBL also acquired FBD Group SHPK to build its infrastructure technology capability platform, including crucial technology assets and personnel resources.
That deal is expected to accelerate revenue-generating opportunities across Europe and North and South America through a new business unit, Cyberlux Infrastructure Technology Solutions (Cyberlux ITS). Again, this is a near-term value driver, with this new business platform driving the execution and implementation of core CYBL infrastructure technology across global renewable energy and infrastructure projects. FBD Group adds expertise as a worldwide telecommunication, infrastructure, software, and service provider. Moreover, they are an innovator in next-generation telecommunications technologies such as 5G, a key communication technology that enhances CYBL’s interests in the unmanned aircraft guidance systems sector.
Investors expect business momentum to catch a tailwind from its recently announced Operation Alpha growth plan. Three priorities are in play: (1) drive growth through aggressive business development, acquisitions, and joint ventures; (2) address core target markets with DoD products, new specialty UAS technology capabilities, solar and renewables, and with emerging infrastructure projects; and (3) gain immediate business velocity by focusing on the new business and the new product pipeline, accelerating the South American projects, continuing to build out the Company’s organization, and driving the Company’s strategic IP development.
The more excellent news is that the plan is accretive to its total operational vision and quickly positions CYBL to capitalize on several potentially billion-dollar market opportunities. In other words, focusing on one is a benefit to all. Thus, don’t think that CYBL’s mission is spread too thin. On the contrary, they are doing the right things in the right markets at the right time to create sustainable shareholder value.
Cyberlux Positions For A Breakout In 2022
And that bodes well for its 2022 prospects. Hence, while weak markets may bring the majority of stocks lower, they also expose valuation disconnects that simply get too big to ignore. CYBL is one.
Revenues are surging, guidance has been revised appreciably higher, its acquisitions will be accretive to a surge in 2022 business, and its capital structure is impressive for a company its size. Keep in mind, too, CYBL isn’t slowing down its ambitions. Instead, they told the markets that they are actively pursuing the hiring of key leaders for its Digital Software Platform business and negotiating the acquisition of additional technology assets to address an estimated $500 billion market opportunity through its digital transformation solutions. Thus, selling pressure on CYBL stock may be overdone at this point.
In fact, CYBL’s sum of its parts indicates that the current valuation disconnect exposes a potentially massive investment opportunity to catch shares at undervalued prices. And taking action sooner than later may be a wise consideration. Remember, markets don’t stay down forever, and companies that can benefit from increased spending on the government side, like what’s happening at the DoD, tend to decouple from that weakness and appreciate as investors rotate their interests to sectors that can be immune from market pressures.
Thus, the investment case for CYBL is attractive, timely, and compelling. After all, not too many companies can do what CYBL does, and at less than $0.02 a share, its stock presents an opportunity to realize potentially exponential gains as its 2022 plan unfolds. And in a market reeling, a bright spot of green is always a welcomed sight.
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