The launch of a network intrusion protector called Sentinel, designed by industry stalwart John McAfee, set up shares of MGT Capital Investments Inc. (NYSEMKT:MGT) for a positive close on Friday.
MGT ended at $2.40, up 14.01%, with 17.28 million shares changing hands. That was very high considering the average volume in the stock is just 2.74 million shares.
Technically it appears there was a high volume distribution at elevated levels and the stock closed well off its high of $2.84 for the day.
MGT Capital Investments Inc. (NYSEMKT:MGT): Sentinel strikes back against the bad guys
MGT launched Sentinel, a user-friendly security device comprising a passive hardware device connected to each subnet.
It monitors network traffic for suspicious activity using sophisticated algorithms and heuristics, generating an alert and deploying appropriate countermeasures.
“Sentinel provides an enterprise IT department with early detection of potential intrusions,” stated John McAfee, Executive Chairman of MGT. “This head start gives a distinct advantage in what indisputably is a war presently being won by the bad guys.”
MGT Capital Investments Inc. (NYSEMKT:MGT): Acquisition shelved
MGT, which is likely to change its name to “John McAfee Global Technologies, Inc.,” recently shelved its plans to acquire D-Vasive and Demonsaw after the NYSE MKT informed MGT that it would not approve for listing the 43.8 million shares required to be issued to complete the transaction.
Investors enthusiastically welcomed the cancellation judging by the sharp jump (nearly 40%) in the value of MGT’s shares.
Technically, MGT shares have fallen out of a symmetrical triangle and tested the 200 day moving average once. On Friday, the share reversed from the 50-day moving average and it appears that was a lower high.
It appears the stock will retest the 200-day moving average at $1.75. If that line does not hold, there could be a further, and sharp, fall.