For those of you who may have missed it, GEPT was out with some news early in the week. While the market yawned in this continuing lackluster environment, the news may portend some other exciting new avenues of business to come in the future.
It seems a major So California police agency has decided to equip 25 of its patrol cars with GEPT’s video surveillance technology. Video and video storage is becoming a bigger part of chronicling law enforcement activity.
What the press release doesn’t say: due to some unique features of the system, GEPT won the contract over some pretty stiff competition- much larger names were in the mix. Due to disclosure issues, I can’t say who they were. GEPT is growing and will continue to grow. To be in the sweet spot of homeland security, they need to complete the acquisition of Astrophysics – this will put them squarely in the middle of the fray for efficient airport and cargo security systems. While the major US airports are fairly secure at this time, cargo coming through our ports is problematic and represents a billion dollar plus market.
The chart is foming a neutral wedge- the lows are getting higher and the highs are getting lower. The longer it takes for the stock to grind out to the end of the wedge, the more violent the break to the up or downside will be when volume returns to the stock.
I believe this stock will continue to trade sideways on low volume until capital begins to flow back into the homeland security/defense sector. Once it does, this stock will be poised to move dramatically.
This is definitely one to accumulate once the energy rush abates.
As always, comments and questions are welcome.