CNBC Stock Blog
- Mulling Buffett's Stock Advice? Get in With REITs: Fund Managers
- So Now You Can’t Give Microsoft Away?
- Groupon Needs More Disclosure: Analyst
- China’s Steelmakers Set for Turnaround: Analyst
- Bulls Bet Silicon Motion Will Bounce
- Tobacco Stocks a Hot Dividend Play: Analyst
- Forget the Earnings, Disney’s Issue Is the Multiple: Analyst
- Drug Stocks Do Well in ‘Gloom and Doom’ Market: Analyst
ABOUT THE CNBC STOCK BLOG
RSS FEED
CNBC EXPLAINS
Four Stocks Poised to Rise From Airline Attack: Analyst
Text Size 
CNBC.com Writer
A Nigerian man with links to al Qaeda militants was charged for trying to blow up a U.S. passenger plane with an explosive device on approach into Detroit. What does it mean for the market and will we see a “terror premium” priced into some stocks? Brian Ruttenbur, homeland security analyst at Morgan Keegan, shared his insight.
“There is a terror premium in the market right now, but it just started," Ruttenbur told CNBC. "Historically, when you go back to 9/11, the group was up 250 percent on average in the first 90 days, but right now, we only have a 5 to 7 percent premium.”
Ruttenbur said the companies getting the premiums are inspection equipment makers, technology providers to homeland security and explosive detection machine firms.
“What we’ve seen over the last nine years is with failed attacks, you have a couple days of rapid movement where the stocks that could potentially be beneficiaries from an attack go up 5 to 15 percent, and then when congress does nothing and there’s no other follow on attacks, the stocks come back down,” he said.
Ruttenbur’s Picks:
OSI Systems [OSIS
Loading...
()
]
L3 Comm. [LLL
Loading...
()
]
American Science & Engineering [ASEI
Loading...
()
]
L-1 Identity Solutions [ID
Loading...
()
]
More Market Intelligence:
CNBC Data Pages:
______________________________
CNBC Slideshows:
______________________________
Disclosures:
Ruttenber has investment banking clients who own shares of OSIS, LLL, ASEI and ID.
______________________________
Data is a real-time snapshot *Data is delayed at least 15 minutes
