Best of the Week
Most Popular
1.UK House Prices BrExit Crash NOT Likely Despite London Property Market Weakness - Nadeem_Walayat
2.BrExit Morning - New Dawn for Britain, Independence Day! - Nadeem_Walayat
3.LEAVE Wins EU Referendum - Sterling and FTSE Hit Hard, Pollsters, Bookies and Markets All WRONG! - Nadeem_Walayat
4.BrExit Implications for UK Stock Market, Sterling GBP, House Prices and UK Politics... - Nadeem_Walayat
5.Trading BrExit - Stocks, Bonds, Sterling, Opinion Polls, Bookmaker Odds and My Forecast - Nadeem_Walayat
6.FTSE and Sterling Brexit Trading, Deconstruction of the EU Referendum Result - Nadeem_Walayat
7.UK Interest Rate Cut to 0.25% Imminent and More QE Money Printing - Nadeem_Walayat
8.Trading BrExit - British Pound Plunges, FTSE Stock Futures Slump on LEAVE Shock Referendum Win - Nadeem_Walayat
9.The Stock Market is Reading it Wrong! - Chris_Vermeulen
10.Breakouts Galore in Gold and Silver - Jordan_Roy_Byrne
Free Silver
Last 7 days
Soybean Commodity Price to Soar Again - 23rd July 16
SPX Stock Market Uptrend Continues - 23rd July 16
Gold And Silver – Debt Addiction Will Carry Precious Metals Higher, Guaranteed - 23rd July 16
Pokemon Go - How to Play, First Use, Balls, Stops, Catching Pokemon's... Great Excercise! - 23rd July 16
7 Signs That the Gold Market Remains Resilient - 23rd July 16
Basic Income in The Time of Crisis - 23rd July 16
Silver Bull Faces Correction - 22nd July 16
The Serious Warning No One’s Talking About - 22nd July 16
Stock Market Insight from Greed, Volatility, and Put/Call Ratio - 22nd July 16
What Will Happen To the Stock Market When Interest Rates Rise? - 22nd July 16
How to Escape the World’s Biggest Ponzi Scheme - 22nd July 16
Addicted to Debt - We Can’t Borrow from the Future Anymore - 21st July 16
Not Everything Is Bullish for Gold - 21st July 16
Don’t Get Sucked Back Into the Stock Market - The Big Picture Hasn’t Changed - 21st July 16
Silver – Caught Inside - 21st July 16
Forex: "The Markets Are Getting Exciting!" - 20th July 16
China Economic Troubles - Is Kyle Bass Finally Getting His Revenge? - 20th July 16
Why Lithium Will See Another Price Spike This Fall - 20th July 16
The Peak Oil Paradox Revisited - 19th July 16
SPX Challenges the Upper Trendline - 19th July 16
Missing ’28 Pages’ of the 9/11 Report Released into Blitzkrieg of World Events - 19th July 16
Likelihood of Organized Disruption at GOP Convention - 19th July 16
More on the ‘Breadth Thrust’ and Stock Market Internals - 19th July 16
FX Traders: Get a Free Week of Forecasts (Details inside) - 19th July 16
Ups and Downs in Gold and Crude Oil Price - 19th July 16
Keep an Eye on ‘Bitcoin’ as the Next ‘Financial Crisis’ Starts! - 18th July 16
Erdogan Might Have Known about the Coup but Didn’t Prevent It on Purpose - 18th July 16
More Deflation Ahead: Silver, Gold And Their Mining Stocks A Must-Have - 18th July 16
Stock Market Minor Top? - 18th July 16
5 Best Gold and Silver Junior Mining Stocks in 2016 - 17th July 16
Gold And Silver – NWO-Created Tragedies Will Never End, Seek Truth - 16th July 16
How Long Can Buybacks Continue To Support A Market Which Is Standing On A Fundamentally Flawed Premise? - 16th July 16
Will They Come For Your IRA? - 15th July 16
Gold’s Record Selling Overhang - 15th July 16
Capitalism Has Entered a New Era—and Historic Stock Market Investing Returns Are Gone Forever - 15th July 16
Gold Price Could Hit $5,000 or Even $10,000 in a Few Years - 15th July 16
Junior Gold and Silver Mining Funds or Individual Gold and Silver Mining Stocks - 15th July 16
The Soaring Risk of Flying in Bernanke's Helicopter - 15th July 16
The Broad Stock Market, Helicopters and Gold - 15th July 16
The Curious Case of Vanishing Lady Liberty; Only Gold and Silver Remember Her - 15th July 16

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Forex Forecasts

Grow Your Stocks Portfolio With The "Eye in the Sky"

Companies / Tech Stocks May 25, 2012 - 06:12 AM GMT

By: Money_Morning

Companies

Best Financial Markets Analysis ArticleG.S. Early writes: Smile.... you're on the 21st century's version of Candid Camera.

Whether you're an Islamic troublemaker in North Waziristan, a rowdy football fan, or a hopeful immigrant trying to slip across the border, the eye in the sky sees everything.


In the halls of power, there's a term for this. It's called the surveillance society. And it is one of the biggest trends inside and outside the military industrial complex.

Also known as ISR - intelligence, surveillance and reconnaissance-it's an outgrowth of more than a decade of war in Iraq and Afghanistan. It's a place where everyone has heard of unmanned aerial vehicles or UAVs.

But while UAVs are an amazing technology in themselves, they aren't very effective unless they can report on what they see -that's the ISR piece of the puzzle.

And that's precisely where a company like FLIR Systems Inc. (Nasdaq: FLIR) comes in. FLIR provides the optics and equipment to make it all happen both in the air and on the ground.

What Analysts are Missing About FLIR Systems
Founded in 1978, FLIR has developed a reputation for building world-class equipment.

And now that these systems have proven themselves in some of the harshest conditions on Earth, the company is expanding to a broad number of other applications in market sectors outside the military.

However, looking at FLIR's chart, it's an understatement to say that this specialty defense imaging stock has been hit hard by the budget cuts and the winding down of our presence in Iraq and Afghanistan.

But there's one thing the analysts are missing. The commercial applications beyond the military are where the money is at this point.

It's like when the same analysts blew the call in the opposite direction years ago with iRobot (Nasdaq: IRBT) when they pinned the entire business on its retail products, like the Roomba vacuum.

The real money was its burgeoning defense contracts. The military started to buy its robots, or unmanned ground vehicles (UGVs), and the stock took off.

Here it's the opposite story -- FLIR's stock is being discounted because its military work is slowing. It's a sucker's bet.

Here's why....

FLIR Takes a Licking, But Keeps on Ticking
FLIR develops and makes forward looking infrared (FLIR) cameras, or in tech-speak, thermal imaging systems.

These cameras can see at night, through rain, fog, or snow-- you name it. These IR systems are also very good at picking out heat signatures and FLIR's system is top of the line.

The military uses them on the wildly popular unmanned vehicles as well as for base camp security cameras. The plastics industry also uses the equipment for making specialty plastics.

Sailors even use them 24/7 to see through the pea soup at sea.

FLIR started selling these cameras to home and business security companies as well as other commercial industries a few years ago. It's become the fastest-growing division of the company. Sales in its commercial division were up 3% last quarter.

What makes FLIR's cameras such a hit in the private sector is that they're built to military specifications, which means they can take a licking and keep on ticking.

FLIR's systems are made of steel and heavy duty optical-quality glass lenses, bolted into cases that can take winters in the mountains of Afghanistan, summers in the Iraqi desert or wind and weather at 30,000 feet.

On the other hand, its competitors have plastic boxes snapped together with plastic lenses.

First responders, law enforcement, fire and rescue, homeland security as well as shipping, chemical, refining and commercial/residential security companies are all very viable new and developing markets for FLIR. Companies and organizations will pay up when they need reliable, accurate and robust equipment.

Spending Cuts? Not For FLIR
What's more, even though the government is cutting back, it's not cutting back on ISR, UAVs, or battlefield technology. The fewer soldiers we need to put in harm's way and the more persistent we can make ISR, the cheaper it is to operate the largest fighting force on the planet.

And if you want to save money in the Department of Defense, it's a lot easier to start with cutting the fuel bill.

Case in point: General George Patton's Third Army of 400,000 men used about a gallon per man per day advancing across Europe in World War II. Today, with about a third of that number, our troops in Iraq were using four times as much fuel.

Some estimate that to keep ships sailing, tanks rolling, Humvees humming and bases operational, the military uses about one-third the nation's oil supply.

Imagine how you could cut those costs by not having to fly sorties with fuel-guzzling planes over hostile territory to gather intel. To make a dent in that consumption would have quite an impact.

With the use of UAVs and the optics systems that FLIR builds, there's no doubt FLIR will have a long and profitable relationship with the military and intelligence sector, regardless of tighter budgets, because it's in strategic sectors that it will continue to grow.

In fact, just this week FLIR announced it had been awarded an indefinite delivery, indefinite quantity contract (the best type of military contract) from the U.S. Army to support the MEDEVAC program.

The contract is valued at $38 million, and is for spare components for Star SAFIRE II stabilized multi-sensor systems installed on the Army's fielded MEDEVAC Blackhawk helicopters.

The company also announced it has received a $17.9 million delivery order from the U.S. Navy Expeditionary Combat Command (NECC) for its SeaFLIR maritime imaging systems. The systems are expected to be deployed on U.S. Navy Patrol Boats.

But with FLIR that's only a small part of the greater story...

Source :http://moneymorning.com/2012/05/25/flir-systems-nasdaq-flir-grow-your-portfolio-with-the-eye-in-the-sky/

Money Morning/The Money Map Report

©2011 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife