Home security in this country has many players, including large corporations and many mom and pop outfits. The industry is fragmented.
Although the financial data may be positive for Brinks, a new kid on the block is joining the mix. There is a little company named Comcast (NASDAQ:CMCSA) is that is offering home security to spruce up its "triple play" package.
Needless to say, Comcast will have a huge advantage entering this market. The biggest advantage is that it already has the pipes in place to carry any message from the home to a monitoring center. And because of its vast network of cable wire and its wide base of service reps, this will be an easy market for Comcast to enter.
I am not a fan of Comcast's stock, as it seems that the company is run more for the Roberts family than for the other shareholders. But that is just my opinion. I do however think the home security rollout will be accretive to future earnings.
It will be interesting to see how wide spread the rollout is for home security. I am sure Verizon (NYSE:VZ) is right behind Comcast. Time will tell. In any case, I think that the Comcast rollout will be disruptive to the future of Brinks.
If any other Seeking Alpha readers can think of other applications that a Verizon or Comcast could roll out with its networks, I would be interested in any feedback.
Disclosure - author has no positions in CFL, CMCSA or VZ