Data Breaches Provide Investment Opportunity

The past few years have seen a number of companies have their data hacked. This can include everything from customer sales data to personal information as well. These hacks tend to lead to a drop in share price of a company, but they tend to recover in time.

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  • The most recent company to see a big hack is T-Mobile (TMUS). The telecom giant has reported that the latest hack is a big one.

    While unfortunate, the effects of the hack are likely to be limited in terms of costs to the company, as many firms have found out over the years.

    T-Mobile is one of just a handful of mobile telecom companies, and the oligopoly business model has been good. Earnings have jumped nearly 800 percent in the past year, although revenues are up only just 13 percent.

    Action to take: Shares are still near 52-week highs, even after selling off form the hack news. However, they don’t pay a dividend, so investors may want to look elsewhere in the space for income.

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  • Given that shares have overall been trending higher over the past year, it’s likely the trend will resume shortly. Traders may like the January $150 calls. Last going for about $4.60, traders can likely nab mid-double-digit profits in the coming months.

     

    Disclosure: The author of this article has no position in the company mentioned here, but may make a trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.