Security Firms as Identity Theft Insurance

I have to admit that I've been rather frustrated by shares of Lifelock (LOCK), which are well off their 52-week highs even though cyber attacks remain a viable and growing threat. Sometimes all it takes is a catalyst to jump start the initial leg up in a stock, and when it comes to Lifelock we had a doozie earlier this week. Health insurer Premera Blue Cross revealed it was a victim of a cyber attack that may have exposed medical data and financial information of 11 million customers. Attackers may have gained access to Premera, claims data, including clinical information, along with banking account numbers, Social Security numbers, birth dates and other data in an attack that began in May 2014. According to TrustedSEC LLC, this was the largest breach reported to date involving patient medical information. The surprise is not the attack itself, but rather how long it took for the attack to be revealed. Companies such as Premera need to have their business button- upped in case of attacks like this. But increasingly consumers need to shore up their defenses against the fallout of these attacks and identity theft. To me that says before too long, companies like Lifelock will eventually see their products and services viewed more like insurance -- better to have it when you need it than be left scrambling when you need it. In my book, that makes LOCK shares a buy at current levels. In its bid to simply its business, something I first touched on after the public company panel I hosted at the Orlando MoneyShow, Procter & Gamble (PG) announced the sale of its Rochas business. That includes Femme, Madame and Eau de Rochas fashion brands. When I look at the consumer product portfolio I have struggled to understand why PG has been in the perfume business despite the argument over it being one of, if not the largest, buyers of fragrances. I believe that getting rid of that business, much like Pringles, allows for greater focus on areas that PG can compete and win inside the grocery or drug store. PG shares are well off their 52-week high, like many above S&P 500 dividend yield paying stocks, but as the interest rate crystal ball becomes clear thanks to Wednesday's FOMC meeting, investors should be taking another look. The buyer of the Rochas business is Inter Parfums (IPAR). That acquisition should help diversity its business and build its brand portfolio, which includes Abercrombie & Fitch, Gap and Jimmy Choo. Back in September, I recommended IPAR shares to Real Money Pro subscribers. Those who heeded that call are up more than 15% -- easily more than double the S&P 500's 6% return over the last six months. If you already own IPAR shares, continue to hold 'em. Lastly, the mobile payments space continues to heat up with Facebook (FB) now throwing its hat into the ring. I think it's an interesting service for Facebook to offer. It is also one that could make the social media service sticky between the much-hyped generation divide when it comes to using Facebook vs. Instagram. It also says that Facebook will continue to innovate its product offerings to increase its stickiness. As a lover of Apple (AAPL) Pay, I expect the mobile payments landscape to heat up as we move through 2015, and it could well get frothy. I continue to like my micro-cap play on this, USA Technologies (USAT), particularly since an insider has just scooped up more shares. For those who missed it, as mobile payments become more in vogue, I continue to see USAT as a long-term take out candidate to a company like VeriFone (PAY) or one of its competitors. TheStreet's March Madness Open House has begun! Get an all-access pass now to see everything TheStreet has to offer. http://bit.ly/1F46KSr

Security Firms as Identity Theft Insurance

Consumers could use such companies as Lifelock to defend cyber attacks.

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