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.