Security Stocks: Secure Picks for Growth?

Andrew Fisher,|CNBC.com Staff Writer
Wednesday, 28 May 2008 | 8:23 AM ET

Homeland security has been a front-burner issue for six and a half years now. It's been a bonanza for companies involved in protecting Americans from terror and crime, and Brian Ruttenbur indicates there's still a lot of upside.

"We have four companies out there that are growing at 30+ percent internal growth," the Morgan Keegan homeland security analyst told CNBC. "Just about everyone is growing double digits."


Ruttenbur's first pick among homeland security companies is AuthenTec, a maker of fingerptint-authentication sensors .

"They're growing roughly 45-50 percent a year, and they're going on laptops and cell phones," he said. "You'll see the first cell phones [with fingerprint sensors] in the U.S. this year."

He also likes FLIR Systems.

"It's an infrared camera company, growing dramatically...in the defense side of the business, but as much growth in the non-defense infrared-camera business," he explained.

ICX Technologies makes sensors and surveillance devices.

"I like their broadness, but one of the products that they have is a(n)...explosive-detection product that you're going to start seeing at airports that can pick up trace amounts of explosive very quickly," he said. "They also have ground-based radar, and as we start securing more infrastructure around the nation and abroad, you're going to see (it) pop up more and more."

Another company on his list is L-1 Identity Solutions.

Homeland Security Stocks
Homeland security stocks, with Brian Ruttenbur, Homeland Security analyst at Morgan Keegan


Ruttenbur's firm has received compensation from ICX Technologies for investment banking services, and has managed or co-managed a public offering of its equity securities during the last 12 months.

A company affiliated with Ruttenbur's firm holds warrants of L-1 Identity Solutions.


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