CCM SECTOROPTICS
WITH MICHAEL SONI

SecuritySolutionsWatch.com
If you take a step back, and take a look at the causes that created the environment where we need homeland security, what do you see? 

Michael Soni
One needs to look beyond the US-Jihadist War to understand the current environment. There is no question that we live in a new geo-political climate. It is clear that the "new" geopolitical climate will continue to have a profound impact on the financial markets. The need for Homeland Security arises from the fact that the United States, alone, enjoys Super-Power Status. Historically speaking, when a state becomes too powerful forces will align with the intention of containing or ending that dominance.

Currently, there is a misconception that the need for Homeland Security is due to the US-Jihadist war. However, this war is only one battle in a larger war, for the United States, to maintain and project its dominance, in the face of challenges from this alignment of forces. As far as the United States political establishment is concerned Homeland Security is now, more than ever, a priority of paramount importance.

There is no question that the growth and importance of the Homeland Security market is, and will continue to be, tremendous. Spending in the area of Homeland Security, in the years to come, is projected to be in the hundreds of billions of dollars. Estimates have ranged from $40 Billion to $200 billion dollars annually. Due to these large, and unprecedented, capital flows in the direction of domestic security, mainly through government spending and private investment, established and newer companies alike will benefit, as they play a larger role in an expanding sector. Protecting the Homeland pulls many companies together from various industries, in effect creating a new sector- the Homeland Security Sector.  

SecuritySolutionsWatch.com
We have all heard of the missions that comprise Homeland Security, please take us through them. 

Michael Soni
HOMELAND SECURITY MISSIONS

Intelligence and warning
-Includes efforts to detect and track potential threats before attacks occur within the United States

Border and transportation security
-Encompasses airline security and inspection of cargo at points of entry into the United States to prevent unwanted individuals or weapons from entering the country.

Domestic counterterrorism
-Consists primarily of federal law enforcement and investigative activities that center on tracking and apprehending terrorists.

Protection of critical infrastructure and key asset
-Includes the physical security of national landmarks and critical infrastructure, including cyber security, as well as the physical security of federal government buildings and installations.

Defense against catastrophic threats  
-Entails efforts to prevent terrorists from obtaining weapons of mass destruction (chemical, biological, or nuclear) and activities to mitigate the effects of such weapons if they are used.

Emergency preparedness and response  
-Includes efforts to mitigate the effects of future terrorist attacks--including creating federal response plans and providing equipment and training for local "first responders" (in general, local fire, police, and medical personnel who are likely to be first on the scene of a terrorist attack).

SecuritySolutionsWatch.com
What are some companies involved in these missions?

Michael Soni
Intelligence and warning

ANT – Anteon Intl
CAI- CACI Intl
CBR- Ciber
FLIR- FLIR Systems
HRS – Harris Corp
LLL- L-3 Communications
MANT – Mantech Intl

Border and transportation security

CAI- CACI Intl
FLIR- FLIR Systems
IDNX – Identix
LLL- L-3 Communications
MANT – Mantech Intl
ISSX – Internet Security Systems
OSIS – OSI Systems
UIS – Unisys Corp
VISG – Viisage Tech 

Domestic counterterrorism

CBR- Ciber
FLIR- FLIR Systems
HRS – Harris Corp
IDNX – Identix
LLL- L-3 Communications
MANT – Mantech Intl
ISSX – Internet Security Systems
OSIS – OSI Systems
UIS – Unisys Corp
VISG – Viisage Tech

Protection of critical infrastructure and key assets

ANT – Anteon Intl
CBR- Ciber
CPHD – Cepheid
FLIR- FLIR Systems
HRS – Harris Corp
IDNX – Identix
MANT – Mantech Intl
ISSX – Internet Security Systems
NTIQ – Netiq Corp
OSIS – OSI Systems
RSAS – RSA Security
SYMC – Symantec
TMO – Thermo Electron
TTEK – Tetra Tech
WGII – Washington Group 

Defense against catastrophic threats

ANT – Anteon Intl
CBR- Ciber
CPHD – Cepheid
HEPH- Hollis Eden Pharma
IDBE- ID Biomedical
MSA – Mine Safety Appliances
RAE – RAE Systems
STE – Steris Corp
TMO – Thermo Electron
TTEK – Tetra Tech
WGII – Washington Group


Emergency preparedness and response  

ANT – Anteon Intl
CBR- Ciber
CAI – CACI Intl
FLIR – FLIR Systems
HEPH- Hollis Eden Pharma
HRS – Harris Corp
IDBE- ID Biomedical
MSA – Mine Safety Appliances
TMO – Thermo Electron
TTEK – Tetra Tech
WGII – Washington Group 

You will notice a lot of overlap within the missions. This is a trend that will continue as more consolidation occurs within the sector, as companies attempt to become integrated providers of homeland security solutions to allied governments and the private sector.
 

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Disclaimer

Michael Soni, is President & CEO of Cronus Capital Markets- a firm specializing in sector research, intelligence, and media. At the time of publication, he had no positions in any of the securities mentioned in this column, but holdings can change at any time. CCM transforms “Top-Down” research into intelligence by identifying sectors within the capital markets that, in addition to their inherent strengths, will benefit from participation in larger trends and cycles.

CCM enhances SectorOptics, by deconstructing and filtering the capital markets, in order to identify sectors experiencing a higher frequency of opportunities. By enhancing SectorOptics, CCM focuses the lens with which capital market sectors are viewed, resulting in greater clarity.

Under no circumstances does the information in this commentary represent a recommendation to buy or sell stocks. While he cannot provide investment advice or recommendations, he invites you to send your feedback – click here to send him an email.


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