Performance, Outlook for Key Stock Sectors
Investors bet that heightened concern about safety all over the world would boost the bottom line for companies that offer security products or services.
Some companies saw their stock price more than double. Shares of Invision Technologies Inc., a maker of explosive-detection systems, rose $5.14, or 165%, to $8.25.
American Science & Engineering Inc., which makes X-ray inspection products, saw its stock price rise almost 98%, up $5.61 to $11.36.
Magal Security Systems Ltd., a maker of security devices used to safeguard airports, military bases and power plants, saw its stock price increase 66%, or $3.31 a share, to $8.30.
Visionics Corp., which makes facial recognition devices, rose $3.98 to $8.25, a 93% increase. The technology is used by law enforcement to try to spot criminals in crowds or identify terrorists who have attempted to disguise themselves. The market expects demand for such products to rise substantially as the technology improves.
“If you have anything to do with security-related services or products, you’re getting a pop today,” said Brian Ruttenbur, an analyst with Morgan Keegan & Co. in Nashville.
Ruttenbur, and many other analysts, say biometrics will play an increasingly substantial role in security systems. Biometrics refers to the scrutiny of identifiers such as fingerprints or retinal patterns--data about the human body that’s consistent over time.
Technology from Visionics and other companies is expected to be used more widely in airports and other public places.
RSA Security Inc., which offers products such as digital identification software that can be used by people to prove their identity in cyberspace, rose 7.34%, or $1.20, to $17.55. Many analysts expect the anonymity of the Internet largely will disappear as security concerns overwhelm demands for privacy.
