SECURITY STOCKS CLIMB AFTER TERRORIST ATTACKS

Oct 1, 2001 12:00 PM

Recommendations for increased security at airports and other public places have impacted a number of security stocks.

At one point last month, seven of the NASDAQ's top 10 gainers were security stocks. The prices have changed since then, but the long-range outlook will likely improve as the federal government and other agencies upgrade security systems everywhere.

One of the highly-impacted stocks was InVision Technologies Inc., San Diego (INVN). InVision stock increased 195.5 percent and hit its 52-week high price of $11.70 in a span of a week.

Quantum Magnetics, Inc., a subsidiary of InVision, was awarded a patent (number 6,268,724) from the U.S. Patent Office in recognition of its method of selectively detecting objects within metal-reinforced suitcases. This invention represents an advancement in the magnetic detection of concealed objects in luggage.

Facial recognition technology stocks have seen a bumpy, yet profitable, road since the market reopened Sept. 17. Both Viisage Technology Inc., Littleton, Mass., (VISG) and Visionics Corp., Minnetonka, Minn., (VSNX) doubled in price after the first day of trading after the attacks.

Since then, both stocks have climbed to their highest-ever marks. Viisage stock has quadrupled in price, and its 52-week high stood at $8.36 near the end of September. Visionics saw a similar increase, and its 52-week high is $13.20. By comparison, Viisage's 52-week low is 75 cents and Visionics' is $2.37.

Identix Inc., Los Gatos, California, (IDX), a provider of biometrics, increased 85.7 percent after announcing it was awarded a contract from a major airport to provide biometric security. The system will perform background checks on prospective airport employees to help the airport comply with the Airport Security Improvement Act of 2000.

Magal Security Systems Ltd., Yahud, Israel (MAGS), moved up 75.4 percent after announcing it signed a contract with the Israeli Ministry of Defense for restoration work on the electronic perimeter system along the Gaza Strip Border.

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