MoneyTalks is Stockhead’s regular recap of the ASX stocks, sectors and trends that fund managers and analysts are looking at right now.
Today, we hear from Paul Hart, executive director of Canary Capital.
What’s hot right now?
Hart says one of the trends of the last 20 years is the move towards digitisation.
“While productivity gains are welcomed, there is an increased risk of hacking, ransomware, and data theft,” he said.
“Organisations are now reliant on trusted, reliable, secure communications and data transfer protocols that operate in a zero-trust, zero knowledge environment.
“Secure solutions which deliver productivity gains are becoming very attractive to organisations.”
Top Pick
Harts top pick in the sector is Harvest Technology Group (ASX:HTG), whose Infinity hardware and Software as a Service (SaaS) product range allow users to encrypt video, audio and data at military grade security and send it from point to point over any medium including satellite 4G, 5G, broadband and internet to anywhere in the world, using ultra low bandwidth and with minimal latency.
Full high definition (HD) video can be streamed over bandwidths as low as 32KB per second, which is up to 75 times lower than current transmission methods.
And poor signal quality can create problems when transmitting video, audio or data.
“For example, a 10% packet loss when transmitting Netflix content will normally result in image loss,” Hart said.
“Using Harvest Infinity, there can be up to an 80% packet loss before the image or signal is lost – in fact the satellite connection is more likely to drop out before Harvest’s Infinity communication protocol does.
“This technology represents a significant advancement towards allowing secure highly quality, real time HD video, voice and data transfers from remote locations anywhere in the world.”
Inmarsat alliance means access to satellite infrastructure
In late 2020, Harvest entered a global marketing alliance with Inmarsat in late 2020, a global leader in mobile satellite communications, and Applied Satellite Technology Group (AST).
Inmarsat is a leader in satellite and radio communications systems and Hart said the alliance will provide Harvest with access to satellite communications infrastructure and tools to enable the transmission of high quality, synchronised HD video and audio over ultra-low bandwidth.
This means the company will be able to provide services required to remotely monitor assets, coordinate site surveys, and conduct maintenance operations across the resources, energy, and utility sectors.
And Harvest was added to the S&P All Technology Index on 21 December, 2020.
Cisco integrating game-changing Infinity tech
In September 2021, the company announced a collaboration with Innovation Central Perth, which is led by US giant Cisco Systems Inc. (NASDAQ:CSCO), to conduct a proof of concept study to integrate Harvest’s unique bandwidth technology into Cisco’s WebEx platform – which is estimated to have more than 300 users globally.
Over the next few months, a team of Cisco software engineers will be working to determine the technical viability of integrating the Infinity technology into Cisco’s WebEx.
“It is not easy to build relationships with global giants like Cisco, but Harvest have been able to do it,” Hart said.
“We believe that Harvest’s technology is game-changing because it provides high quality, secure and reliable communications globally with many applications across a wide range of industries including mining, oil and gas, utilities, defence, aviation, shipping, emergency services, gaming and media streaming companies.”
Speedcast deal announced yesterday
And just yesterday, Harvest announced that it had entered into a worldwide reseller agreement with communications and IT services provider Speedcast Australia Pty Ltd – who deliver critical communications to the energy, mining, maritime, media and government and enterprise sectors.
Hart says it arguably has the world’s most comprehensive communication networks using satellites, fibre, cellular, microwave, multiprotocol label switching and IP transport network.
Under the agreement Harvest’s ultra-low bandwidth communication protocol will be resold to provide remote communications to Speedcast’s customers.
And currently, Speedcast has more than 3,200 customers in 140 countries which means there is a significant opportunity for Harvest to generate substantial annual recurring revenue from the deal.
“The need for ultra-reliable secure connectivity for high-value assets is dependent on satellite communication,” he said.
“Harvest’s unique solution makes them a stock watch.”
Private company dekkoSecure on Hart’s radar
Hart said that while vast amounts of money have been spent on products that secure communication and data inside organisations, the sharing of sensitive information outside of organisations provides a whole new set of challenges.
dekkoSecure is a secure communication and collaboration platform that provides military grade end-to-end encryption security that provides a zero-trust, zero-knowledge environment with full authorisation, authentication and auditability on a single web-based platform.
“In the current environment of increasing cyber threats coming from hackers, ransomware and even from within organisations, a product like dekko can substantially mitigate the risks faced when sharing sensitive data,” Hart said.
Hart said the company has an impressive client list that includes investment banks, telcos, and state and federal government agencies including law enforcement and integrity commissions.