The Brink’s Company (NYSE: BCO), Command Security Corp. (AMEX: MOC), Corrections Corporation of America (NYSE: CXW), The GEO Group, Inc. (NYSE: GEO), Smith & Wesson Holding Corporation (NASDAQ: SWHC), Sturm, Ruger & Co. Inc. (NYSE: RGR), and TASER International Inc. (NASDAQ: TASR) are just some of the key companies that investors have to choose from when it comes to the safety of America.  We wanted to take a look at where these shares trade, what they are worth, and even if those crazy Wall Street analysts think they are good investments or not based upon consensus Thomson Reuters price target data.  We have not included the Homeland Security winners as those companies are motivated by a different issue.

The Brink’s Company (NYSE: BCO) may be considered more of a transportation company, but if the world was full of a bunch angels then it would not be needed.  The company is perhaps the world’s top provider of secure transportation and cash management services.   Banks and merchants have to secure, cash, jewelry, stones, and other small precious and valuable goods because there is an element of society that will literally kill for those goods.  This armed and secure transportation services operation trades with shares at $27.64 and its market capitalization is close to $1.3 billion.  Its 52-week trading range is $18.30 to $34.46. Sales in 2010 were $3.12 billion and Thomson Reuters sees 2011 revenues of $3.76 billion.  The consensus price target is roughly $36.00.

Command Security Corp. (AMEX: MOC) may have some overlaps that are not solely law enforcement, but this is a private security company with Rodgers Police, with over 6,000 armed and unarmed workers for the Secret Service, Fortune 1000 companies, and other government and/or private entities.  The difference here is that this company is tiny compared to peers/  It sometimes skips trading days.  At $1.59 it has a market cap of about $17.5 million and its 52-week range is $1.45 to $2.47.  Revenues in 2010 (March year-end) were over $145 million.  Unfortunately, this one just lost its CEO. This one is too small for most firms to cover it. 

Corrections Corporation of America (NYSE: CXW) is where you end up after being a bad boy and when you big ambition of life was “three-hots and a cot.”  The company owns and operates privatized correctional and detention facilities  in America. Only the federal government and three states have more facilities than the “Con Hotel” of Corrections Corporation with some 66 facilities that include 45 company-owned facilities with a total design capacity of approximately 90,000 beds in 19 states and the District of Columbia.  At Revenues in 2010 were 1.68 billion and Thomson Reuters has estimates of $1.73 billion for 2011 sales.  At $22.79, its 52-week trading range is $18.19 to $26.89 and its market capitalization is over $2.4 billion.  The consensus price target is roughly $30.00.

The GEO Group, Inc. (NYSE: GEO) competes with Corrections Corp. as it provides outsourced services managing correctional, detention, and mental health and residential treatment facilities in the United States, Australia, South Africa, and the United Kingdom.  At $24.58, the market capitalization is about $1.58 billion and the 52-week range is $19.01 to $25.95. Sales in 2010 were $1.27 billion and Thomson Reuters expects sales of about $1.64 billion in 2011.  The consensus price target is roughly $31.17.

Smith & Wesson Holding Corporation (NASDAQ: SWHC) and Sturm, Ruger & Co. Inc. (NYSE: RGR) are two of those companies which live on both sides of the ‘crime and defense sector’ when you think about it.  The arguments for and against guns are many, but crime and public-defending cannot go without bringing in the gun manufacturers.  The companies probably do not want this addressed too much, but whether you are cop or a hardened con chances are that you are packing a gun from one of these two companies or from their rivals.  Smith & Wesson trades at $3.45, has a 52-week trading range of $3.27 to $4.60, and has a market cap of about $208 million. S&W’s sales in 2010 (different fiscal year, April) over $406 million and Thomson Reuters sees sales of over $390 million in 2011. Strum Ruger trades at $20.73, and its 52-week range is $12.66 to $24.05 with a market cap of about $395 million.  Sales in 2010 were $255.2 million and Thomson Reuters sees sales of over $278 million in 2011.  Let’s not forget about home security operations as well.  The consensus price target for S&W is roughly $5.02 and the consensus price target for Sturm, Ruger is roughly $25.00.

TASER International Inc. (NASDAQ: TASR) is a controversial company because its Tasers (stun guns) have been the subject of many wrongful death suits against police departments and around the devices.  What is amazing is that the one feature is rarely addressed publicly… Police sometimes have to use force.  When you are attacking the police, or when you are resisting arrest and cannot be reasoned with that you have to go to the clink, would you rather have your head bashed with a baton, would you rather have a hollow-point-.44 enter your chest and exit your back the size of an orange, or would you rather be tasered?  At $4.48, its 52-week range is $3.52 to $5.17 and its market capitalization is approximately $270 million.  The company is now expected to run at profitability.  Sales in 2010 were $86.9 million and Thomson Reuters expects sales of over $98 million in 2010.  The consensus price target is roughly $5.17 but it is thinly followed.

Not including some of the defense companies and others like Tyco International Ltd. (NYSE: TYC) and Honeywell International Inc. (NYSE: HON) and Diebold, Incorporated (NYSE: DBD) makes this feel very incomplete, but we wanted to focus on pure-plays in security, weapons, prison, and others.  There are also dozens of OTC or Pink Sheet stocks that can fit in the category of crime and punishment, but we usually refrain from covering such small companies.
 
JON C. OGG

It seems that both Smith & Wesson Holding Corporation (NASDAQ: SWHC) and Sturm, Ruger & Co. Inc. (NYSE: RGR) would be happy that they have one fewer public gun company to compete with.  Still, it is not as if Remington and the other brands under Freedom have not already established market share.  Neither stock is up so far today either.

Freedom Group did not offer up a reason for the withdrawal.  It would be easy to speculate about the cases involving instances where Remington guns have reportedly misfired.  Whether that is the case depends upon which side you are on and we will leave it at that.  The only explanation is as follows:

• “At this time the Company has determined not to proceed with the initial public offering contemplated by the Registration Statement. The Registration Statement has not been declared effective by the Commission and the Company hereby confirms that no securities were sold in connection with the offering described in the Registration Statement. Therefore, withdrawal of the Registration Statement is consistent with the public interest and the protection of investors…”

What is  interesting is that the filing advised the SEC that it may undertake a later private offering.

Smith & Wesson Holding Corporation (NASDAQ: SWHC) has a market cap of $212 million and its sales in 2010 (April-year) of $406.1 million.  Sturm, Ruger & Co. Inc. (NYSE: RGR) has a market cap of $430 million and its 2010 sales were $255.2 million.

JON C. OGG

That was then. Now, firearms makers are having a tougher go. Smith & Wesson Holding Corp. (NASDAQ: SWHC) reported weak first-quarter 2011 earnings today. In July, competitor Sturm, Ruger & Co. Inc. (NYSE: RGR) reported lower revenue second-quarter revenue and earnings. Alliant TechSystems Inc. (NYSE: ATK), the largest ammo maker in the US, reported strong sales in its security and sporting group for its first quarter of 2011. Even stun-gun maker Taser International Inc. (NASDAQ: TASR) had a poor second quarter, though it surpassed EPS loss estimates of -$0.03 by a penny.

As with so many things these days, US gun sales have followed the economic outlook. In the first half of 2009, when doom and gloom about the economy was very high, gun sales soared as people bought firearms for personal protection, fearing that unemployment would lead to a rise in crime.

Those fears haven’t panned out. The FBI’s preliminary report for 2009 on US crimes begins by noting that violent crime fell by 5.5% in 2009 compared with 2008. Property crimes also fell, buy 4.9%.

Depending on which side of the gun-control issue one believes, the drop in numbers means either that a well-armed citizenry prevented crime or that gun buyers wasted their money.

Yet any way one looks at it, guns and ammo sales are up. The FBI’s National Instant Check System and payments to states from federal excise tax collections on sales of guns and ammo are up more than 25% in FY 2010, to more than $470 million. In August 2010, the FBI has conducted more than 1 million background checks, and 2010 is on a pace to meet or, more likely exceed, the 14 million background checks completed in 2009.

S&W shares are down nearly 9%, back up slightly after hitting a new 52-week low earlier this morning.

Paul Ausick

Corinthian Colleges Inc. (NASDAQ: COCO) is up again, still on rumors that Pershing Square’s Ackman may have a very heightened interest.

Capstead Mortgage Corp. (NYSE: CMO) is lower by 5.6% at $11.15 on thin trading volume after its $0.26 dividend declaration yesterday represented another cut.

GT Solar International Inc. (NASDAQ: SOLR) is actually higher after pricing its secondary offering of 11 million shares at $7.39 per share.  Shares are up 1% at $7.47 on more than 1 million shares.  This stock was above $8.70 before the deal became known this week.

Lululemon Athletica Inc. (NASDAQ: LULU) is surging after strong earnings this morning; shares are up9.3% at $39.20 on over 70,000 shares.

MEMC Electronic Materials Inc. (NYSE: WFR) is trading up on thin volume after its subsidiary signed a memorandum of understanding for 400MW of solar plants in a Korean province.  Shares are indicated up 2.9% at $11.00.

National Semiconductor Corporation (NYSE: NSM) is trading lower after earnings and after seeing little growth ahead. Shares are down 5.8% at $12.15 on over 60,000 shares.

Nokia Corporation (NYSE: NOK) is trading higher after naming a new CEO, which the company has been trying to reluctantly fight for weeks or months.  Shares (ADRs) are indicated up 4.4% at $10.19 on more than 2 million shares.

Irish banks are getting hit, partly on new capital raise concerns from larger healthier banks: The Bank of Ireland (NYSE: IRE) is down 3% at $3.53 and Allied Irish Banks plc (NYSE: AIB) is down 1.5% at $1.92.

Smith & Wesson Holding Corporation (NASDAQ: SWHC) is soft this morning after lower gun sales in the latest period were reported.  Shares are down 8.6% at $3.62, although trading volume is muted and barely 10,000 shares pre-market.

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JON C. OGG

We have provided the news or reason behind the move, as well as background data and added color on each where applicable.

Arena Pharmaceuticals, Inc. (NASDAQ: ARNA) is trading up after the company licensed its obesity and weight loss drug to Eisai.  Shares closed at $3.07 yesterday and are up 15% at $3.53 on close to 300,000 shares.

Dendreon Corp. (NASDAQ: DNDN) is getting clipped aggressively this morning after the U.S. government said it will review whether PROVENGE for prostate cancer is reasonable and necessary.  This is a move meant to drive down the reimbursement rates after the price tag is so high.  Shares are down over 15% at $27.47 on over 500,000 shares. This will be one of the day’s most active stocks for sure.

Isle of Capri Casinos Inc. (NASDAQ: ISLE) is surging this morning on news that it halted a 9 million share secondary offering due to adverse stock market conditions.  Shares are up more than you might expect on the news as the stock is up over 13% at $10.50 on about 25,000 shares.

Research in Motion Ltd. (NASDAQ: RIMM) is down 0.5% this morning and\has put in yet even newer 52-week lows… Stocks hitting 52-week lows tend to keep hitting 52-week lows.  $50 was violated yesterday, now $49 is being violated this morning.

Smith & Wesson Holding Corporation (NASDAQ: SWHC) is on the move after its lower quarterly earnings were actually above estimates and after its outlook pleased investors.  Dirty Harry would be proud.  Shares of the gun-maker are up over 7.5% at $4.40 on about 20,000 shares.  The 52-week range is $3.75 to $6.98 and average shares per day is over 1 million.  Look for volume to pick up as the open gets closer.  Sturm, Ruger & Co. Inc. (NYSE: RGR) is the other player in guns, but no trades have been seen there yet.

TASER International Inc. (NASDAQ: TASR) seeing 52-week lows and is not feeling much love after it lowered estimates.  Shares are trading down just over 10% at $3.50 on about 10,000 shares.  The prior 52-week range was $3.79 to $7.88 and it trades about 1.1 million shares on average.

Yahoo! Inc. (NASDAQ: YHOO) is indicated higher, although on somewhat thin trading volume.  The lagging internet giant has authorized a new repurchase plan for shares up to $3 billion over the next three years to replace its prior $3 billion plan.  The prior plan had only about $300+ million remaining on it.  Shares are up 1.1% at $13.99 on only about 30,000 shares.

JON C. OGG

Smith & Wesson Holding Corp. (NASDAQ: SWHC) is off 12% on earnings and guidance; we’d watch for added fallout in Sturm, Ruger & Co. Inc. (NYSE: RGR).

Take-Two Interactive Software (NASDAQ: TTWO) is down 20% on its warning.

Bank of America Corp. (NYSE: BAC) is trading down 1.7%, but not as much as the deal price, after increasing its capital raise.

Marvell Technology Group Ltd. (NASDAQ: MRVL) is at new 52-week highs after higher earnings and higher guidance.  We’d watch Broadcom Corporation (NASDAQ: BRCM) and Texas Instruments Inc. (NYSE: TXN) on the news.

Facet Biotech Corporation  (NASDAQ: FACT) is down slightly despite a boosted buyout offer.

Sun Microsystems, Inc. (NASDAQ: JAVA) is up over 5% on a report that the EU may be flawed and/or appeased in its block of the Oracle deal.

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JON C. OGG

Smith & Wesson Holding Corp. (NASDAQ: SWHC) is up over 10% and strong enough to make Dirty Harry proud. We are looking for a secondary trade in Sturm, Ruger & Co. Inc. (NYSE: RGR) on this one.

Monsanto Co. (NYSE: MON) is getting worse on higher volume after it gave an earnings warning bad enough that traders need to watch Market Vectors Agribusiness ETF (NYSE: MOO) and Archer-Daniels Midland (NYSE: ADM) for secondary trades.

Real Networks Inc. (NASDAQ: RNWK) is surging, maybe almost too much had this not still been way off 52-week highs, on a Apple iPhone and iTouch app approval.

Texas Instruments Inc. (NYSE: TXN) is not very exciting considering raised guidance.

Yahoo! Inc. (NASDAQ: YHOO) is running higher on an upgrade and on a CEO interview with shares up now over 3%.

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JON C. OGG
SEPTEMBER 10, 2009

USR is also the original creator of the GRAB® vehicle safety barrier, which S&W says represents the fastest growing barrier technology in the world and is what the company says is the only active barrier product that meets the Federal Highway Administration’s TL-2 safety test, the Department of State’s K12 L3 security test, and the Department of Defense ASTM M50 Shallow Mount security test.  The company serves a variety of clients in the defense, transportation and petrochemical industries, airports, and national laboratories.

This is actually a diversification play.  The transaction gives Smith & Wesson entry into the rapidly growing perimeter security market to expand its revenue.  S&W noted that it believes there are opportunities in areas of transportation, railroad crossings, work zone safety, ballistics, law enforcement, energy producing facilities and international markets which not yet addressed.

USR operates primarily in two facilities in Franklin, Tennessee, with a workforce of approximately 110 employees.

The acquisition of USR is expected to close in late July 2009, so it will have no impact on 2009 fiscal earnings.  Revenue for the fourth quarter of fiscal 2009 was $99.5 million, which is $16.4 million, or 20%,higher, than revenue for the comparable quarter a year earlier and gross profit margins improved to 31.0%. Its backlog balance grew to over $200.0 million as of April 30, 2009.  The buyout will include 5.6 million shares at closing and up to 4.1 million shares of common stock depending on USR meeting certain targeted EBITDA for calendar years 2009 and 2010 and  the average price of S&W common stock leading up to the closing date of the transaction.  That is set as $8.8 million to $26.2 million in cash.

Many investors get nervous when companies go make buyouts, but this is a diversifying merger.  It seems investors are happy with the results.  Shares closed up almost 2% at $4.93 and they are up an additional 10% at $5.45 in the after-hours session.  The 52-week range is $1.53 to $7.52.

JON C. OGG
June 18, 2009

Some companies come out with securities sales immediately after thefiling and some do not.  Smith & Wesson looks like it may fall in thelatter category as no underwriters were named in the filing.  The firearms makerintends to use the net proceeds for general corporate purposes.

This stock has been hit rather hard in recent months considering howwell it was doing before.  Shares closed down 0.4% at $4.57 today andits 52-week trading range is $3.72 to $22.00.  Its current market capis $215 million.  As of July 31, its total liabilities were $185million and its cash balance was a mere $1.365 million. Totalcurrent assets were $133.49 million.

Jon C. Ogg
September 23, 2008

Bed Bath & Beyond Inc. (NASDAQ: BBBY) closed up 4.27% at $29.79 after beating earnings the night before.  We saw nearly triple the volume with more than 14.3 million shares traded.  Earnings were down from the prior year but still better than analysts were expecting.  You just know their customer base isn’t going to stay at home forever, recession or not….

Novo Nordisk A/S (NYSE: NVO) was another standout winner, and it is amazing that the volume on this diabetes winner has remained so low.  The Danish drug company is often one of the few winners on crummy days as their diabetes treatments are above and beyond all.  Shares closed up 2.8% at $67.85.  While 480,000 shares isn’t as actively traded as many key US drug stocks, it is nearly double a normal day for NVO shares. Recession or no recession, that insulin for diabetics has to keep coming and it has to keep getting better and better.

Smith & Wesson Holding Corp. (NASDAQ: SWHC) rose by 6.6% to $5.45 today on more than double volume of 1.66 million shares.  And it wasn’t because we all have to buy guns to fight off the economically challenged. The Supreme Court overturned a handgun ban in Washington D.C. by a 5-4 decision, ruling that the district’s handgun laws violated the Second Amendment by denying individuals the right to own guns.

Sprint Nextel Corp. (NYSE: S) bucked the day’s trends after it said that the recently launched touch screen Samsung Instinct smart phone broke company sales records in its first week in stores.  If there was a phone company that needed a rally, it’s Sprint.  Shares closed up almost 3.4% at $8.84 on almost twice the normal trading volume with more than 64 million shares trading hands.

Yamana Gold Inc. (NYSE: AUY) was the volume leader in major gold stocks today.  With a weakening dollar and oil cruising past $140/barrel, you know the gold bugs were winning today.  We saw more than a 3% gain to back above $900/ounce for gold today.  Yamana shares were up 6.8% at $15.61 on over 21.4 million shares, almost twice its average daily volume.

Interestingly enough, none of the major integrated U.S. oil companies rose today.  Even that huge list of DEFENSIVE STOCKS FOR A CRUMMY MARKET failed to perform again today. 

Jon C. Ogg
June 26, 2008