First off, cheers to those onboard Northwest flight 253, especially they guy who subdued the attempted pants-bomber.
After the failings on multiple levels of security, airline shares are taking a hit today as people speculate about tighter security, which would slow travel and hurt profitability.
Arline stocks are off about 5% today, while security firms American Science & Engineering (ASEI) and OSI Systems (OSIS) are up handily on the day.
In ASE's case, part of today's jump is due to a December 24th announcement by the US Army that they would be purchasing 37 Z-backscatter Xray trailers for use in Afghanistan. With an average price tag of $1million, this could guarantee ASE hits its 2010 fiscal year earnings targets. ASE and OSI also offer products that might have detected the explosives used in the failed bombing last week.
Copyright 2009 AlphaNinja