Shares of Strikeforce Technologies Inc (OTCMKTS:SFOR) spiked 60% even as the company suffered a major blow on a long-running patent infringement lawsuit touching on its cybersecurity patents. A U.S Courts of Appeal ruling that three of its patents, as part of the trial, are invalid is the latest headwind that the company has to contend with.
StrikeForce Share Price Analysis
The spike came as a surprise given that the stock has come under immense short selling pressure in recent weeks. A sell-off of the stock has also come on the company announcing plans to expand its global reach throughout South America in pursuit of new opportunities for growth.After a stellar start to 2018, StrikeForce Technologies Rallied by more than 100% before coming under pressure from short sellers. The stock has since shed more than 90% in market value, over the past few months, arousing concerns about its long-term prospects. SFOR Daily ChartStrikeForce Technologies is in dire need of new catalysts as it is currently flirting with all-time lows despite the recent spike. Even on spiking 60% from all-time lows, the stock is still engulfed in a long-term downtrend and susceptible to further drops in continuation of the sell-off wave.Below the $0.02 mark, StrikeForce Technologies remains vulnerable to further drops as short sellers remain in control. For the stock to turn bullish, it needs to surge and stabilize above the critical resistance level.
About StrikeForce Technologies
StrikeForce Technologies is a software development and service company. The company specializes in the development and licensing of identification protection software for protecting computer networks against unauthorized access. Its lead product is ProtectionID, an authentication platform.
South America Expansion Drive
Investor’s sentiments in StrikeForce Technologies inched higher, earlier in the year, on the company announcing plans to expand its footprint in South America. The company has already set sights on the Ecuadorian and South America market in pursuit of deals for its ProtectionID authentication platform.ProtectionID is the company’s authentication platform for authenticating computer network users. The company has since signed a deal with Caroni Solutions LLC for the launch of the authentication platform in the two markets.
“We're excited to partner with industry leader StrikeForce Technologies to deliver the industry's most versatile, flexible and cost-effective multi-factor Out-of-Band authentication platform," said Andrés Merino South America spokesperson for Caroni Solutions.
Expansion into South America is a significant step in the company’s push for growth opportunities. The company should be able to target a wider target market consequently derive new streams to supplement revenue streams back in the U.S.
Patent Infringement Setback
The pursuit of new revenue opportunities for ProtectionID comes at a time when the company is facing an uphill task to overturn a patent infringement lawsuit. The company had sued cybersecurity firm SecureAuth Corp over claims it infringed three patents touching on its multifactor authentication technology.The company has confirmed plans to appeal a U.S Courts of Appeals ruling that affirmed a lower court ruling. The court in its ruling maintained that the patents in question are invalid as they touched on a patent-ineligible abstract idea.
“We are currently considering our option. Among which are: (1) asking the panel to rehear the case; (2) asking the entire Federal Circuit (including all twelve active judges on the court, and not just this panel of three judges) to rehear the case; or (3) petitioning the United States Supreme Court for a writ of certiorari.,” StrikeForce Technologies in a statement.
Bottom Line
A spike of 60% plus from all-time lows does not mean StrikeForce Technologies is out of trouble. The stock remains susceptible to further drops given the lack of substantial catalysts to sustain the upward momentum.With short sellers still in control, the stock looks set to remain under pressure. Bouncebacks could present opportunities for short sellers to continue pushing the stock lower, given the descending bear trend line, that looks set to cap upside action.However, the company moving with speed to pursue revenue opportunities in South America could go a long way in triggering renewed investor interest in the stock. Until the company reiterates its growth prospects, especially with the expansion in South America, the stock looks set to remain under pressure.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.
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