Best of the Week
Most Popular
1.Scottish Independence YES Vote Panic - Scotland Committing Suicide and Terminating the UK? - Nadeem_Walayat
2.Independent Scotland Will Disintegrate as Unionist Regions Demand Referendum's to Rejoin UK - Nadeem_Walayat
3.Bank of England Panic! Scottish Independence Bank Run Already Underway! - Nadeem_Walayat
4.Gold and Silver Price Ready To Go BOOM - Austin_Galt
5.Gold and Silver Potential Price Meltdown Scenario - Rambus_Chartology
6.Scottish Independence UK Catastrophe - The Balkanisation of Britain - Video - Nadeem_Walayat
7.The Price Of Gold And The Art Of War Part I - Darryl_R_Schoon
8.Main Reason Why Scotland Will Vote NO to Independence, 70% Probability - Nadeem_Walayat
9.Heavy Gold and Silver Shorting is Bullish - Zeal_LLC
10.10 Year U.S. Treasury Short Best Place to be Remainder of 2014 - EconMatters
Last 5 days
Scotland Independence Result NO Win 55% to Yes on 45% - 18th Sept 14
Silver Price: A Collapse and a Rally - 18th Sept 14
Here's Why Trendlines are Your New Trading Best Friend - 18th Sept 14
Silver Buyers Keep Stacking And Demand Higher Despite Falling Prices - 18th Sept 14
The "Hidden" Billions in the Alibaba IPO - 18th Sept 14
Russian Union Of Engineers Accuses Ukraine Airforce In MH17 Crash - 18th Sept 14
Monetary Policy Weighs on Gold and Silver - 18th Sept 14
Global Currencies Analysis...The World According to Chartology - 18th Sept 14
Gold Price Hammered by Strong U.S. Dollar - 18th Sept 14
Is Citigroup the Dumbest Bank Ever? - 18th Sept 14
Scotland Must Vote Yes! For All Of Us - 18th Sept 14
Scottish Independence Referendum Result NO 55%, YES 45% - Vote Forecast - 18th Sept 14
A Public Bank Option for and Independent Scotland - 17th Sept 14
The Charade of Independence for Scotland and UKIP - 17th Sept 14
Gold Report - U.S. National Debt Surges $1 Trillion In Just 12 Months - 17th Sept 14
How to Find Trading Opportunities in ANY Market Using Fibonacci Analysis - 17th Sept 14
Why Money Is Worse Than Debt - 17th Sept 14
Can Gold Price Finally Recover? - 17th Sept 14
Scotland Independence - Europe Holds Its Breath - 17th Sept 14
The Energy Prices at Risk with Scottish Independence - 17th Sept 14
Scottish Independence SNP Lies on NHS, Economy, Debt, Oil and Currency - 17th Sept 14
The Truth Behind the Dangerous "Helicopter Money" Delusion - 16th Sept 14
Central Bank Balance Bullying: Investor Implications - 16th Sept 14
U.S. Dollar and Gold Elliott Wave Projection - 16th Sept 14
The Origins and Implications of the Scottish Referendum - 16th Sept 14
The Collapse Of U.S. Silver Stocks As Public Debt Skyrockets - 16th Sept 14
Emerging Markets Are Set Up for a Crisis, What’s on Your Radar Screen? - 16th Sept 14
Scottish Independence Bank Run Already Underway - Video - 16th Sept 14
The Emergence of the US Petro-Dollar - 16th Sept 14
Economic GDP Drives Stock Prices Inestment Myth - 16th Sept 14
Don't Miss This Gold Buying Opportunity - 16th Sept 14
Why ECB QE Is Bearish For Gold Prices - 15th Sept 14
Property Rights and Property Taxes—and Countries That Don’t Have Them - 15th Sept 14
Junior Miners Breaking Out Higher Forecasting Gold and Silver Price Bottom? - 15th Sept 14
Stock Market Patiently Waiting for Mean Reversion - 15th Sept 14
A Closer Look at the US Dollar - 15th Sept 14
The Silver Price Sentiment Cycle - 15th Sept 14
Stock Market Correction Underway - 15th Sept 14
Marc Faber - “I Want To Be Diversified, I Want To Own Some Gold” - 15th Sept 14
The Myth of Nuclear Weapons - 15th Sept 14
US Dollar Forecast to Go Much Higher - 15th Sept 14
Analysis And Price Projection Of The Uranium Market - 15th Sept 14
Bank of England Panic! Scottish Independence Bank Run Already Underway! - 15th Sept 14
The Ethics of Entrepreneurship and Profit - 14th Sept 14
The Big Investor Opportunity in the Orbital Space Junkyard - 14th Sept 14
Kohl's and The Rest of The Retailers are in Deep Doo Doo - 14th Sept 14
Independent Scotland Will Disintegrate as Unionist Regions Demand Referendum's to Rejoin UK - 14th Sept 14
Stock Market Pullback Continues - 13th Sept 14
SNP Fanatics Warn of Day of Reckoning for Scottish Independence No Campaigners - 13th Sept 14
Scottish Independence Would Shake Up the Global System - 13th Sept 14
The World Order Becomes Disorder - 13th Sept 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Huge Stocks Bear Market

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

© 2005-2014 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

Free Report - Financial Markets 2014