By Alan Fein - Axcess Business NewsThe world grows smaller as technology advances. That all adds up to change in
face of worldwide concerns over personal safety. Some fear an Orwellian society over having to much security imposed on their lives through advent of smarter technologies. Investors have been taking a wait-and-see approach as well, perhaps chastened by similar fears of uncertainty. But some industries see those same technology advances as a long-awaited windfall.
Since last month's elections bolstered Republican power in Washington, some security stocks have moved higher and some say its been a long time coming. "It's been a very frustrating year," said Marty Roenigk, chief executive of CompuDyne Corp (NasdaqNM: CDCY), whose Attack Protection unit outfits federal and commercial buildings with blast-resistant windows and doors.
In November, House of Representatives overwhelmingly passed legislation to create a Department of Homeland Security, freeing bill from a dispute over worker protection.
Still, analysts warn that it may be months or years before any benefits of new $37 billion department, which combines 22 existing federal agencies under one roof, are disbursed. Analysts were also quick to point out that in this fragmented industry, different companies will reap gains at different stages of process. Axcess Business News sees both security and government contractors benefiting most.
Two companies that may benefit most are American Science and Engineering, Inc (AMEX: ASE), through sale of its X-ray equipment and Oak Ridge Micro-Energy, Inc (OTCBB: OKRM), which will benefit from sale of disposable luggage tags that track baggage at airports (smart bags).
Analysts also see bulk of federal money going to government contractors like Lockheed Martin Corp (NYSE: LMT) and Boeing Co (NYSE: BA). Here again Oak Ridge Micro-Energy, Inc (OTCBB: OKRM) can benefit as their products largest market is with government contractors.
Defense giants typically out source many component requirements to small companies. Airport security products on other hand are supplied for most part by small companies, like ASE and OKRM.
Whether investors look towards security or government contractors, both industries require more advanced technologies. Oak Ridge National Laboratory in Knoxville Tennessee has long been known as a source of many of today's more advanced technologies. Dr. John Bates and his research team at Oak Ridge had devoted over 20 years to development of electrically and solar rechargeable thin-film lithium and lithium-ion batteries that Oak Ridge Micro-Energy, Inc. (OKRM) owns rights to acquire through a non-exclusive license from Oak Ridge National Laboratory.
