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Jon Najarian: Travel Alert Could Boost 3 Stocks

Securities firms landed in the spotlight Monday after the State Department warned Americans to think twice before traveling in Europe.

According to intelligence, al Qaeda may be planning attacks similar to the 2008 massacre in Mumbai, India.

Although nobody wins from the threat of terror, an increased interest in security has led Jon Najarian to put 3 stocks on his radar.

OSI Systems - They provide specialized electronic components as well as body scanners and more.

American Science & Engineering – The firm focuses on the development, manufacture, marketing, and sale of X-ray inspection and other detection solutions.

ICX Technologies - Its sensors detect and identify chemical, biological, radiological, nuclear and explosive threats. (FLIR is in the process of finalizing it's acquistion of ICX at the time of writing.)

Whenever you hear this kind of news take a look at OSI, ASEI and ICXT, says Najarian. But you have to be nimble. They're quick to react to any news of potential spending increases. But these are short term plays and they move very quickly.

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Meanwhile Guy Adami suggests a different name in the space for investors with a longer time horizon:

L-3 Communications Holdings - Makes command, control, communications, intelligence, surveillance and reconnaissance (C3ISR) systems, and government services.

In this space I like long L-3, says Guy Adami. It’s a great homeland security play and valuations are very fair



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Trader disclosure: On Oct. 4, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (GS), (INTC), (MSFT), (C), (NUE), (BTU); Adami's Wife Works At Merck ; Karabell Owns (AAPL), (FCX); Jon Najarian Is Selling (Aapl) Puts; Jon Najarian Is Long (Lvs); Jon Najarian Is Short (Lvs) Calls; Jon Najarian Is Long (Mgm); Jon Najarian Is Short (Mgm) Calls; Jon Najarian Is Short (Mos) Calls; Jon Najarian Is Short (Mos) Puts; Jon Najarian Is Long (Wynn); Jon Najarian Is Short (Wynn) Calls; Joe Terranova Is Long (EOG), (APA), (AAPL), (OIH), (VRTS), (XBI), (ARUN), (IBM), (XBI), (C), (ORCL), (PEP), (OXY), (SU), (JOYG), (RIG), (IBM), (HES), (RSH), (UPL); Stephen Weiss Owns (NIHD); Stephen Weiss Owns (SLE

For Zach Karabell:
Karabell's Firm Is Long (WCN)
Karabell's Firm Is Long (MSFT)
Karabell's Firm Is Short (SPY)
Karabell's Firm Is Short (QQQQ)

For Mike Khouw
Cantor Fitzgerald Is A Market Maker In (ADM)

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Morgan Stanley Has Advised On A Public Offering Of (RSG), (WM)
Morgan Stanley Has Received Compensation For Inv. Banking services from (RSG), (RHI) (URS), (WM)
Morgan Stanley Makes A Market In Shares Of (RSG), (URS), (WM)

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