Talk about throwing the baby out with the bath water!
Looks like astute ASE investors may have just been given a new buying opportunity.
WASHINGTON, April 24 (Reuters) - The Bush administration restructured a key element of airport security on Wednesday, dramatically reducing plans to buy large $1 million machines to scan checked luggage for bombs.
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First of all, ASE's forte has never been airport baggage screening, clearly there were many investors who considered ASE in the same camp as INVN, LLL, or OSIS as they sold their shares watching the other three tank on the news.
ASE's niche is in the inspection of imported cargo, an area which is just now getting attention. The inspection of baggage is minuscule in comparison to the inspection of cargo.
However, Morgan Keegan, which covers all the EDS companies, states the FAA is currently examining ASE's 101ZZ parcel scanner for possible certification.
Critics have said the FAA wouldn't certify the ASE equipment because it is a manual system. Today's DOT press release confirms that they are, in fact, going to use manual (and cheaper, more reliable systems).
UPDATE 2-US to rely more on cheaper airport bomb detectors
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INVN/LLL investors should have been paying more attention to the problems that have been surrounding their equipment, now it appears the FAA may be giving ASE a second look! |
