Components of HACK (in order of % of total holdings):
HACK is up almost 10% YTD, with the bulk of their gains coming in the past 2 weeks. HACK is a relatively new ETF (began trading in Nov ’14), and tracks about 30 securities in the high-growth cyber security space. HACK has run-up big during the past few trading sessions, and I think its going to pull back to the $27.40-$27.60 range before moving higher. There’s no doubt that cyber security is becoming a hot sector (remember FEYE’s 250% move early last year?), and this will eventually lead to an influx of cyber security IPOs (list of Cyber Security software companies in the IPO pipeline here: https://ipowizard.wordpress.com/2015/02/23/cyber-security-software-companies-in-the-ipo-pipeline/).
My Favorite Picks from the HACK ETF:
CYBR: CyberArk has nearly doubled since the end of January, and even with its sharp decline today I believe its going to keep moving down until it hits the mid-high $40s, then it should continue higher.
QLYS, PFPT, and BLOX: I like Qualys, Proofpoint, and Infoblox here. QLYS and PFPT are in solid uptrends have annual top-line growths of 33% and 45%, respectively. BLOX is retesting its 6 mo. high for the third time in the past 3 months right now, and if it breaks above $21 it should make for a nice swing trade.
IMPV & CUDA: If Imperva and Barracuda Networks break above $52.30 and $40.40, respectively, they should have no problem running up another 20-30%.
PANW: Palo Alto Networks has been one of the best-performing stocks in both 2014 and 2015. It seems as if it will never go down; I’d consider buying some here just to ride this mega uptrend.