By now I guess everyone knows what President Trump stands
on regarding national security. He is taking some extreme measures with an executive
order temporarily banned U.S. entry to persons from Iraq, Syria, Iran, Sudan,
Libya, Somalia, and Yemen until “extreme vetting” is implemented. Yes, this is
going well till now as it has been blocked by the Court. But at least this
demonstrates how serious he is about doing something regarding the national
security. Don’t get me wrong! I’m not talking about politics here and ask you
to go with or against Trump on this. It is really none of my business where you
stand on. No interest for me. But I think there is something interesting you
may consider from the investing perspective, regardless which side you are
standing by.
If the Trump administration wants escalating the security
measures, there are many aspects involved but there is one thing that will
certainly be more enhanced and used. That’s the biometric fingerprinting. By
now, each of us coming into the US via airport must have fingerprinting done. I
think the trend is clear that demands will be substantially increasing under
this administration to help identify potential terrorists efficiently. One tiny
company is in a unique position to benefit from this trend. I’m taking about
BIO-key International (BKYI), which
only has a market cap of just $181 million. Since the company is tiny and
small, it is virtually unknown. Probably even more unknown is the fact that BIO
was the only company chosen by the FBI a few years ago to help implement a
biometric fingerprint databases capable of handling in excess of 200 million
prints. Believe or not at that time, it was the only company that could meet
the very stringent FBI requirements. Nowadays, there are a few more but still
very few that have this kind of capability. Here are a bit more details about
BIO: BIO-key International, Inc. develops
and markets fingerprint biometric identification and identity verification
technologies, cryptographic authentication-transaction security technologies,
and related identity management and credentialing software solutions. The
company markets its products through its direct sales force of professionals,
as well as through resellers, integrators, and partner networks to government
and corporate customers primarily in North America.
Of course, be aware that penny stocks are very
risky even for speculation purpose. While the upside potential could be big if
the bet is right, the downside risk is also great, potentially down to zero.
Don’t go crazy regardless how much you love it and always assume first that you
may not see your money again by buying this stock.
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