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Saturday, February 18, 2017

Go with FBI


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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