Four security and anti-terrorism stocks to consider buying offer huge potential for protecting people and producing growth for investors.
The four security and anti-terrorism stocks to consider buying feature three companies that have their biggest opportunities in front of them, while the fourth is a technology giant that is forming partnerships in search of its next big breakthroughs. The four security and anti-terrorism stocks, excluding a fifth company that still is privately held, are worth highlighting for investors who are willing to accept additional risk in a calculated move to achieve heightened returns.
Each of the companies offers capabilities that are superior to what currently is widely available to protect schools, military bases, airports, stadiums, arenas, theaters and places of worship. On the 80th anniversary of the Dec. 7 attack on Pearl Harbor in 1941, it serves as a fitting time to remember the loss of 2,403 American lives when bombs and bullets targeted them from the air and the sea.
Four Security and Anti-Terrorism Stocks to Consider Buying
The Nov. 30 killing of four students, the wounding of six other teenagers and one teacher at Oxford High School in Michigan about 43 miles from Detroit and 33 miles from my hometown of Flint serves as the latest example of a horrific yet preventable attack. If screening machines had been in place at the school’s entrance, the gun used in the attack by a student could have been detected and law enforcement could have been notified instantaneously.
One stock that has screening machines capable of not only detecting metal guns, but plastic improvised explosive devices (IEDs) and non-metallic, 3-D printed weapons is Liberty Defense (OTCQB: LDDFF, TSXV: SCAN, FRANKFURT: LD2), a public company that recently opened a new headquarters outside of Boston in Wilmington, Massachusetts. The company employs seasoned security engineers who left jobs at Leidos Holdings Inc. (NYSE: LDOS) and L3 Harris Technologies, Inc. (NYSE: LHX).
“Engineers think everything through multiple times, so to see close to 10 of them come over is a very strong testament to our technologies and products,” said Bill Frain, the chief executive officer of Liberty Defense. The company’s goal is to develop “game-changing” technology, he added.
Plus, it is 20 years since the terrorist acts of 9/11 when 19 hijackers committed murder-suicide, killing 2,977 people and injuring more than 6,000 others. That day forever changed the role of security technology and revealed a critical need for innovation to thwart those who seek to harm others.
Liberty Defense Is One of Four Security and Anti-Terrorism Stocks to Consider Buying
Security companies need to stay “one step ahead” of emerging threats, Frain said. As a 30-year veteran in the security industry, Frain said he has been part of technological advances in detecting and preventing attacks.
Growth in the security industry shows no signs of slowing to protect against increasingly sophisticated weapons, Frain said. However, acts of domestic and international terrorism are continuing, along with violent crime, as gun purchases from a wide range of demographic groups are on the rise in the United States with four-in-10 adults reporting that they live in a household with a gun and three-in-10 indicating they personally own one, according to a June 2021 Pew Research Center survey.
Federal data show gun sales rising in recent years, particularly during the coronavirus pandemic. In 2020, the number of monthly federal background checks for gun purchases was consistently at least 20% higher than in the same month of 2019, according to the FBI’s National Instant Criminal Background Check System. The largest percentage-point difference occurred in July 2020, when about 3.6 million background checks were completed, up 44% compared to July 2019.
Technology Aids Four Security and Anti-Terrorism Stocks to Consider Buying
As a result, demand is jumping for cutting-edge security detection technology that keeps people safe in their communities and when traveling by plane, ship or train. Liberty Defense is developing “leading-edge security” technology that includes its HEXWAVE body scanner to detect metallic and non-metallic concealed threats in buildings, as well as at indoor and outdoor events with high-volume screening.
Liberty Defense also is developing aviation security technology that includes the millimeter wave-based, High-Definition Advanced Imaging Technology body scanner and shoe screener that were licensed from a national laboratory and funded by the Department of Homeland Security.
The company has raised more than $11 million so far in 2021 and has another $500,000 coming from a contract it received in October 2021 from the Transportation Security Administration (TSA). Even though Liberty Defense is in the pre-revenue stage, its leaders indicate the company is less than 12 months away from commercialization and the potential of a much higher valuation.
“Liberty Defense will be working closely with the TSA to provide overall screening effectiveness with security being the number one priority, but also improving the throughput for a practical and effective process,” Frain said.
Plus, Liberty Defense announced a beta testing agreement with the Maryland Stadium Authority that will cover the stadiums where the Baltimore Orioles play baseball and the Baltimore Ravens play football with seating capacity of 45,000 and 72,000, respectively.
One of Liberty Defense’s key market verticals is sports and entertainment venues, so adding Baltimore’s Major League Baseball and National Football League stadiums to the company’s testing marks important progress, Frain said. Testing the system in facilities will help to ensure the technology is aligned to market needs and produces valuable customer feedback, he added.
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Evolv Is One of Four Security and Anti-Terrorism Stocks to Consider Buying
A better-established comparable company to Liberty Defense is Waltham, Massachusetts-based Evolv Technology (NASDAQ: EVLV), which offers a walk-through portal and went public via a special purpose acquisition company (SPAC) this summer in a deal valued at $1.7 billion. Evolv Technology has approximately $15 million in annual sales. A key difference is that Evolv Technology is producing revenues but its screening machines only test for metallic objects, whereas Liberty Defense’s HEXWAVE tests for both metallic and non-metallic weapons.
Even though SPACs in the defense industry offer the opportunity to invest in early-stage companies that otherwise may be not available to public equity investors, the risks need to be well understood, said Ronald Esptein, an analyst with BofA Global Research.
“The SPAC financing process, in general, does not require the same level of due diligence that the traditional IPO process does,” Epstein said. “When considering such early-stage companies, quarterly earnings are essentially meaningless as most don’t have earnings at all.”
Ronald Epstein, BofA defense analyst. Image courtesy of Bank of America Global Research.
Four Security and Anti-Terrorism Stocks to Consider Buying Offer Upgrades
Nonetheless, Evolv Technology’s detection equipment can help secure large venues and companies. Its mission is to improve crowd security, as well as create a safer world to work, to learn and to play.
The company seeks to give sports fans, theme park visitors, concertgoers, shoppers, employees, students and others peace of mind to gather without fear of violence. Evolv Technology’s security screening has scanned 100 million-plus people, second only to the U.S. Department of Homeland Security’s Transportation Security Administration (TSA), using technology that combines advanced sensors with artificial intelligence (AI), security ecosystem integrations and venue analytics to detect threats 10 times faster than standard metal detectors.
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Survey Shows Americans Are Worried About Gun Violence
Evolv commissioned Equation Research to conduct the survey, Guns in America: A Survey on Public Violence, Anxiety, and Threats, spanning Oct. 20-28, collecting responses from a broad distribution of 2,015 adults in the United States aged 18 and older. The survey found that 77.8% of the respondents answered that gun violence is a problem in America, while 44.9% reported feeling either extremely or moderately anxious about gun violence in the country.
At the type of locations where high-profile mass shootings have taken place, Americans report they now routinely check the exits and develop a mental plan in case a shooting occurs. Since mass casualty events have occurred in movie theaters, grocery stores and bars and night clubs, some of the people who go to such venues are taking precautions.
In a movie theater, such as in Aurora, Colorado, that suffered an attack in 2012, 62.6% check exits or develop a mental plan about how to respond in the event of a shooting, while 28.6% report either extreme or moderate anxiety. In addition, 15.3% of Americans responded that they feel they are at higher risk of encountering an active shooter based on their religious affiliation.
The United States is “awash in guns and gun violence,” with the American public filled with more anxiety than ever and eroding any sense of trust that they are safe from harm, said Peter George, Evolv Technology’s chief executive officer. The survey indicates the most effective way to alleviate this “nationwide anxiety” is to democratize access to security for all public spaces, so the public can feel confident when they gather and venues can take appropriate measures to keep people safe, he added.
Four Security and Anti-Terrorism Stocks to Consider Buying Include VSBLTY
Philadelphia-based VSBLTY Groupe Technologies Corp. (OTC: VSBGF), (CSE: VSBY) and (Frankfurt: 5VS) a provider of security and retail analytics software, announced a license agreement with RADAR USA, Inc. on Aug. 21 to offer “smart” security cameras and services in the United States and Canada. In contrast, conventional security cameras require human surveillance of multiple video screens at the same time to identify and respond to threats.
VSBLTY uses artificial intelligence (AI) and machine learning in a subscription-based platform to provide retail and security solutions. RADAR USA, formed in 2021, is a collaboration between VSBLTY and RADAR APP in Mexico, where the security network deployment has reached 10,000 cameras.
The security application enables cameras to monitor vast areas, detail weapons and other specific items, as well as identify persons of interest, measure audiences and see objects and potential threats. The capability has been found to reduce crime where it has been tested.
Four Security and Anti-Terrorism Stocks to Consider Buying Eye Licensing Deals
“The licensing agreement with RADAR USA is a major step toward bringing effective and affordable security technology into U.S. and Canadian neighborhoods and making them safer,” said Jay Hutton, VSBLTY founder and chief executive officer, who also is the executive chairman of RADAR USA. “The collaborative security technology will allow private citizens and public safety entities to gain an improved view of their environments and better allocate resources.”
The agreement with VSBLTY gives RADAR USA an exclusive license to serve certain market segments in the United States and Canada that include homeowners associations, municipal governments and critical infrastructure. The pact provides VSBLTY with a pre-paid, non-refundable $2 million fee, payable upon achieving certain funding milestones.
RADAR APP has also entered into an agreement to grant RADAR USA an exclusive license to its software applications and related intellectual property on the same terms and compensation structure as provided to VSBLTY. RADAR APP is a collaborative security application that integrates citizens, local police and technology in a single platform, Hutton said.
Four Security and Anti-Terrorism Stocks to Consider Buying Are Complementary
The technology’s interface connects street lighting, cameras and alarm systems, facilitating real-time interaction between people, police headquarters and patrol cars to prevent crime or quickly address any emergency. To that end, the RADAR APP network in Mexico has grown significantly in the last couple of years, said Hutton, who added that the technology application, powered by VSBLTY AI, is gearing up to show its potential in U.S. test markets.
VSBLTY aligned with RADAR APP and some key funding partners to pursue the U.S. market. The partnership allows VSBLTY to remain focused on its core security software development initiatives, Hutton said.
Certain VSBLTY executives and directors have participated in an initial arm’s length financing round for RADAR USA, described as the world’s first socially connected security network, Hutton told me in a Dec. 6 interview. But none of the management or directors of VSBLTY holds greater than a 1.04 percent interest in RADAR APP USA.
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Four Security and Anti-Terrorism Stocks to Consider Buying Omit RADAR USA
RADAR USA is currently a private company but is intending to raise additional capital in the first half of 2022. However, there is a big technology company that investors may want to invest in to gain exposure to these new security opportunities without the risk of purchasing shares in start-ups.
“Investors who want to invest in a larger company that also participates in this opportunity should take a look at Intel (NASDAQ: INTC),” said Bob Carlson, who heads the Retirement Watch investment newsletter.
Four Security and Anti-Terrorism Stocks to Consider Buying Include Intel
Intel’s Internet of Things services that help with airport security and other security needs include the Extreme Vision Smart Security System, Intelligent Video Analytics Recorder, LiDAR sensors and more, added Carlson, who also serves as chairman of the Board of Trustees of Virginia’s Fairfax County Employees’ Retirement System with more than $4 billion in assets.
Chart courtesy of www.stockcharts.com
“It’s not a large part of the company, but it has the potential to grow as the company uses its established technologies, plus artificial intelligence, to help airports and other places enhance security.
Pension fund and Retirement Watch chief Bob Carlson answers questions from columnist Paul Dykewicz.
BofA Global Research Sees Further Questions for Intel Before Reassessing Underperform Rating
BofA Global Research has an “underperform” rating on Intel due to its current competitive challenges and unanswered questions about its plans to spin off Mobileye in an IPO. The current view is that the upside of the IPO for Intel is limited, wrote BofA analyst Vivek Arya.
The risk of the deal is that the IPO could be “one more distraction,” while Intel is trying to outcompete focused foundry and fabless rivals, Arya wrote in a Dec. 7 research note. Upside from the IPO could prove Mobileye is well positioned to capitalize on demand for auto technology assets, while providing Intel with incremental cash, he added.
COVID-19 Risk Remains a Worry as Cases and Deaths Climb
The new Omicron variant of COVID-19 and the highly transmissible Delta variant are combining to raise the level of worry in the United States and other parts of the world. Public health experts and government leaders still advocate for increased vaccinations and booster shots, as well as indoor mask wearing.
The Centers for Disease Control and Prevention (CDC) has data that show the variants are boosting the number of people receiving COVID-19 vaccinations. Even though roughly 62 million people in the United States remain eligible to be vaccinated, they have not seized the opportunity, said Dr. Anthony Fauci, the chief White House medical adviser on COVID-19.
As of Dec. 7, 236,363,835 people, or 71.2% of the U.S. population, have received at least one dose of a COVID-19 vaccine, the CDC reported. The fully vaccinated total 199,687,439 people, or 60.1%, of the U.S. population, according to the CDC.
COVID-19 deaths worldwide, as of Dec. 7, exceeded the 5 million mark, soaring to 5,270,625, according to Johns Hopkins University. Worldwide COVID-19 cases have zoomed past 267 million, reaching 267,099,936 on that date.
U.S. COVID-19 cases, as of Dec. 7, hit 49,380,791 and caused 791,514 deaths. America has the dubious distinction as the country with the most COVID-19 cases and deaths.
The four security and anti-terrorism stocks to consider buying have huge potential but also carry significant risk. Investors willing to accept the risk-reward may find the long-term results satisfying if one or two of the stocks fulfill their promise.
Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Seeking Alpha, GuruFocus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The book is great as a gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many others. Call 202-677-4457 for multiple-book pricing.
