The Best Way to Invest in the War on Cybercrime Isn't the One You Might Think (FTNT, CHKP, STAF)

If you saw the alarming headlines circulating everywhere this morning, then there's a good chance you've already taken on a new position in Fortinet Inc. (NASDAQ:FTNT) and Check Point Software Technologies Ltd. (NASDAQ:CHKP). Both are solutions to the underscored problem, and truth be told, likely will benefit from ugly reality this morning's news is spreading. FTNT and CHKP may not be the best ways to play the news-based investing theme, however. The best long-term play is a solutions provider called Staffing 360 Solutions Inc. (OTCBB:STAF). While the company may not superficially sit in the same category as Fortinet or Check Point Software Technologies, fundamentally, it does, and may actually be better positioned for growth.

Some of you will have already connected some of the dots, but it not, here goes - this morning, the Center for Strategic and International Studies reported that cybercrime costs the world's consumers $445 billion every year. That's a ton of money, and any means of stopping - or even just slowing - that loss would be money well spent. Ergo, since Fortinet Inc. and Check Point Software Technologies Ltd. both offer cybersecurity solutions, the argument that FTNT and CHKP are sound investments here is an easy one to make. But Staffing 360 Solutions? Oh yeah... it's sitting pretty as well.

Just as the name suggests, Staffing 360 Solutions is a staffing firm. The name doesn't do it justice though. STAF has developed and continues to develop itself in a niche space within the staffing arena. What space is that? You got it - cybersecurity. The company provides qualified cybersecurity specialists to companies that are increasingly vulnerable to the now-well-publicized cybercrime issue, and to companies that are increasingly aware they aren't adequately protected. When all is said and done, it will be people rather than hardware and software that put an end to the rampant rise of cybercrime.

Though not part of the report from Center for Strategic and International Studies this morning, there's plenty of supporting evidence that Staffing 360 Solutions may be a smarter way to play the advent of cybercrime. The general consensus is, globally, we're more than 300,000 people short of the total number of cybersecurity specialists we need. The Bureau of Labor Statistics forecasts a comparable number for the United States, saying the number of information security specialists the U.S. is going to need by 2018 is more than 50% greater than the number we have right now. The staffing industry itself predicts IT temporary staffing will grow at 8% in 2014 while temporary staffing for healthcare and accounting should only grow at about a 6% pace this year.

As for just how far Staffing 360 Solutions Inc. could ride this wave, though accretive acquisitions it's already on pace to generate annual sales of more than $100 million, up from about $8 million per year as of two quarters ago. By 2016 though, STAF expects to be generating more than $300 million per year in annual revenue. At that level, the company not only has the size and scale to generate some serious cost-savings, but can also start to use leverage to win new business organically. As such, it's a compelling opportunity for investors who can see the bigger picture beyond today's headlines. 

Investors interested in learning more about Staffing 360 Solutions can visit the company's website here. It's got several investor-centric publications available.