Thanks for creating this thread!
This sector is a favorite, and I can't beleive how cheap these stocks are right now!
I first became familiar with these stocks around the time of the TWA "bombing" (which turned out, in retrospect, not to be a bombing). At that time, these comapanies were all losing money, and had non-existent P/Es. Accordingly, the way this crazy market works, they all went nuts over a 2-3 week period, acting much like Internet stocks act today :)
In the mean time, security measures have been significantly stepped-up, and all the companies have turned profitable.
I bought some BARR today, and have to say the lack of follow-through was disappointing. I shoulda bought a "basket" of the group, sigh... ASE and VVID were particularly impressive today. A cursory look into VVID suggests that they are taking the lead in luggage detection from MAGSF and INVN.
BARR does have a stock buyback working for them, as well as promised fulfillment of delayed orders from the FAA that are expected in the last half of this year.
One thing to keep in mind about this sector, if the past is any indicator, is that it takes it a while to get going after an "event", and the conventional "buy the rumor, sell the news" does not necessarily apply. While it may seem it's "over", it's currently early in the cycle, and these stocks will typically rise for from weeks to months after a large "event", as news of increased security efforts and new orders slowly trickle in.
They will have wide fluctuations from day to day in direct response to developing world events, but at the same time, there is an adjustment in the underlying fundamental trend, as greater demand is made for their products. |
