Tuesday, December 29, 2009

Investors seen jumping the gun on airport security

http://finance.yahoo.com/news/Investors-seen-jumping-the-rb-1173135211.html?x=0&sec=topStories&pos=3&asset=&ccode=

The feed frenzy, no coincidence here, it's a sure bet or should I say secure bet.


Investors' optimism surrounding the shares of airport security systems makers could be premature as interest in the companies' products after the Christmas Day plane scare is not expected to translate into immediate orders.

Shares of explosive-detection equipment makers OSI Systems (NasdaqGM:OSIS - News), American Science and Engineering (NasdaqGS:ASEI - News) and ICx Technologies Inc (NasdaqGM:ICXT - News) rallied for a second day on Tuesday as investors bet on swift government action to improve airport security.

Analysts believe the failed December 25 attempt to blow up a Detroit-bound airliner will accelerate the process of testing new equipment, but any laws requiring its use will depend on Congressional action.

"If this was a successful terrorist attack, the orders would be coming down in January," Brian Ruttenbur of Morgan, Keegan Securities said. "Because it wasn't a successful attack, the government will hold hearings about what broke down."