Terror warnings boost security shares
By Chris Bagley, CBS MarketWatch.com
Last Update: 11:59 AM ET May 26, 2004
SAN FRANCISCO (CBS.MW) -- Shares of several firms whose detection products are designed to guard against terrorism rose sharply Wednesday after U.S. officials warned of the possibility of a major attack this summer.
Among the movers were U.S.-traded shares of Magal Security Systems (MAGS: news, chart, profile), up nearly 23 percent to $20.82. The Israel-based company makes video-monitoring and other surveillance equipment.
Mace Security International (MACE: news, chart, profile), a New Jersey-based maker of pepper sprays and car alarms, saw its shares climb more than 21 percent to $5.74.
Digital Recorders (TBUS: news, chart, profile) followed suit, rising nearly 16 percent to $6.76. The Dallas-based company produces digital audio filter systems and tape transcribers.
Ipix Corp. (IPIX: news, chart, profile) advanced 12 percent to $8.76. San Ramon, Calif.-based Ipix makes video-imaging systems.
Image Sensing Systems (ISNS: news, chart, profile), a St. Paul, Minn.-based maker of systems used to analyze traffic data, rose 9.5 percent to $13.25.
Their surge came as FBI Chief Robert Mueller and U.S. Attorney General John Ashcroft will hold a news conference at 2 p.m. Eastern to discuss U.S. response to the reported threats.
Earlier Wednesday, Secretary of Homeland Security Tom Ridge said in television interviews that "credible" reports pointed toward a terrorist attack possibly taking place on U.S. soil this summer. Possible targets would include the Democratic national convention, scheduled to take place in Boston in late July, and the Republican convention, to be held in New York in late August.
An annual report released Tuesday by the International Institute for Strategic Studies said the U.S. occupation of Iraq was motivating terrorists. As many as 18,000 terrorists remain at large around the world, the report said. |
