Market Overview

Cybersecurity And Tech Guru Andrew Chanin Gushes On Investing In The Space

Cybersecurity And Tech Guru Andrew Chanin Gushes On Investing In The Space
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  • Andrew Chanin, CEO of PureFunds, was a guest on Tuesday's edition of #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick. Tune in to the daily broadcast live Monday-Friday at 8 a.m. ET here.
  • Chanin launched the PureFunds ISE Cyber Security ETF (NYSE: HACK) in 2015, and sees a lot of potential within the mobile payments, big data and cybersecurity industries of the technology sector.
  • PureFunds has launched PureFunds ISE Mobile Payments ETF (NYSE: IPAY) and PureFunds ISE Big Data ETF (NYSE: BDAT) to take advantage of these industries.

Andrew Chanin is bullish on cybersecurity, and he thinks you should be too.

Appearing on Benzinga's PreMarket Prep Tuesday morning, Chanin, the CEO of ETF developer PureFunds, discussed his company's ETFs and why cybersecurity is a great investment right now.

"We think we're in the early stages of the growth of this industry," he said. "We think increased spending on cybersecurity defense and solutions could benefit the sector."

Related Link: 3 Cybersecurity Plays For The New Year

Even though technology tends to trade at a higher P/E than other sectors, Chanin said this doesn't necessarily make it a riskier play. He sees a "divergence" of cybersecurity from the rest of the sector.

"We may see uncorrelated returns in cybersecurity vs. other sub industries because this is one of those unique industries that, just because your company is in a different part of its growth period, doesn't mean you're any less at risk of being attacked from a cyber standpoint."

FireEye Is Proof To Be Cautious

FireEye Inc (NASDAQ: FEYE) has proven itself to be one of the most popular plays in the cybersecurity industry, yet it has struggled to be profitable for investors. Chanin explained that, even though there's agreement that the industry has a profitable future ahead, you need to tread carefully when investing in individual companies.

"I think a lot of people said, 'Ok I believe in this space. I want to invest in this space. How do I do it?' I think it's a great company to point to and say even though everyone is talking about how this company has the potential to grow to the moon, there's a lot of volatility when you pick individual companies."

FireEye opened Tuesday's trading at $22.29, down almost 60 percent from its June high.

Check out the interview in its entirety at the 1:00:00 mark (after the break) in the clip below.

Image Credit: Public Domain

Latest Ratings for FEYE

Nov 2016Goldman SachsDowngradesNeutralSell
Sep 2016Deutsche BankAssumesHold
Sep 2016WunderlichAssumesHold

View More Analyst Ratings for FEYE
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