Micro Capitalization Stocks Can Be A Great Investment
Windowofworld.com – September 11, 2001 was a defining moment in the history of our country. Prior to this historical date, the Department of Homeland Security has not even created airport security and is the same as any other industry. Investors have taken advantage of the sector’s recent surge. Like most investors, they look for bigger companies and bigger stocks when investing. As a result, there are a lot of micro capitalization stocks that are being missed.
Micro shares sell for $ 5 or less per share. While you most likely won’t become the next Warren Buffet investing in just a micro-hat, you can and should add them to your portfolio. Just as you wouldn’t get rich with a micro-cap, you probably won’t go broke either. Because the selling price is minimal, the risk is much smaller. Whether you are looking to upgrade your existing portfolio or have recently invested in, and you don’t have a lot of money to spend, this stock level can be an excellent investment.
Some of the companies in the homeland security sector are relatively new, so researching them is a little more difficult than companies like GE. If you take the time, you can find some very good stocks.
When looking for a company to invest in, you should consider things like management, what popular products are currently in the industry, and some evidence of stability. I will share a few companies that I think meet these criteria. These examples should not be taken as recommendations. These are just guidelines on what to look for in a possible investment. If you decide to invest in one of these companies, it is because you have researched them and found them to be good investments for your portfolio.
Global ePoint, Inc.- symbol (GEPT) – they develop and manufacture industrial and commercial computer systems and digital audio and video surveillance. The company consists of three divisions: Aviation, Contract Manufacturing and Digital Technology. Some of Global’s biggest clients are: Citibank, FedEx, GE Interlogix, Universal Studios, and American Airlines. Global has also been very active in the news in recent months:
o October 28, 2005 – The ePoints Global aviation division earned $ 750,000 in additional contracts to be shipped during the fourth quarter.
o 3 November 2005- Global won the UKiah Police Department contract, CA.
o November 7, 2005- Global received an order for $ 1.2 million Image Processing Equipment for X-ray scanning equipment.
Global management is also evident. Their CEO, Toresa Lou, was the CEO of McDigit Company before becoming CEO of Global ePoint. He turned McDigit from $ 0 in annual sales to over $ 400 million per year. Their share prices range from a 52-week low of $ 2.00 per share, to a 52-week high of $ 8.00 per share.
Sense Holdings, Inc.- symbol (SEHO) – Their main business is explosives detection, human authentication and identification, and time and attendance systems. Sense Holdings has been in business since July 1998.
o They have recently been awarded contracts from two Fortune 100 companies to implement biometric solutions.
o Sense Holdings is granted exclusive sales and representation rights to U.S. granted patents. This patent is for the use of biometric technology to access and operate any motorized vehicle. The biometrics included in the patent are: fingerprint, voice, face, and iris recognition for use in cars, ships, plans, and trains.
One of the founders of the company is still involved and is now the CEO and President of the company. Five people highlighted as leaders of Sense Holdings, Inc. all had successful careers prior to founding or joining Sense Holdings. Their stocks differ slightly from Global. Their 52-week low is $ 0.14 per share and the high is $ 0.42. Such low prices may be enough to scare off some investors.
Sniffex, Inc.-symbol (SNFX) – Founded in October 2004. They only have one product, which is a device that will detect explosives up to 100 feet away. It can even detect explosives through metal boxes or concrete walls. There are variables that will determine its ability, such as weather conditions and the amount of explosives used. This is their only product.
o Paul Johnson is their CEO. He has led more than seven companies in his career. Although all of them, before Sniffex, Inc., were more of a web-based technology company.
If I were thinking about investing in one of the three companies I have listed so far, I would be very skeptical about Sniffex. They are the newest of the three companies. They have a new leader in the industry, and they only have one product, even though it is a very important product. Their current share price, as I write this, is $ 1.65 per share. The 52-week low is $ 0.05 per share with a high of $ 6.00 per share.
While doing the research for this article I came across many companies. There are dozens of companies in the Homeland Security sector. This is an important industry for obvious reasons. I read some expert views on several companies in which they provide recommendations on which companies you should and shouldn’t invest in.
One such recommendation is for companies that don’t currently have a product on the market. They are waiting for many patent approvals. The recommendations then explain what will happen if the patent is approved. As I read it, I thought, This guy must have shares in this company. Could this stock make a lot of money if the patent was approved, of course. But, I think I have pointed out in this article that there are other companies that offer a similar opportunity for a return on your investment with much less risk. If you research the sector, I think you have the opportunity to make a solid investment. Just use good judgment and look for the right indicators of success.