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Technology Stocks : Identix (IDNX)
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To: stockman17 who wrote (19359)12/5/2000 1:09:02 PM
From: David  Read Replies (1) of 26039
 
I think we should be cautious in interpreting the Compaq/AmEx announcement, and be careful the dots connect to the right places.

The coming of smart card technology represents both a threat and an opportunity for Identix. Things could go in either of two directions, and it may be that Compaq is simply covering its bets by supporting a smart card/PIN as well as biometrics.

Although we are all convinced, reasonably in my opinion, that biometrics and smart cards are a very good match, the market might take the view that smart cards + PIN are greater security than we presently have with mag strip cards + PIN, and at only incrementally greater cost. To get the further boost in security with biometrics, you have to pay a bit more money. Where is the optimum price/security point in the market? Does the adoption of a smart card system promote or obstruct biometrics? I think this is still somewhat of an open question, at least so long as smart cards are being introduced without a biometric element attached.
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