ArmorGroup International: Capitalizing on an Insecure World

The UK version of The Motley Fool has an article touting ArmorGroup International (AMGPF.PK). The writer is John Walter, who, in addition to having a smart first name, is also a shareholder.

After discussing company prospects in Iraq, he broadens the scope:

The outlook in the rest of the world is also good. The reconstruction effort in Afghanistan will need high levels of security. ARG has a countrywide presence with a large base in Kabul and will profit as contracts get awarded to rebuild the country's infrastructure.

Elsewhere, attacks on foreign oil companies have increased in the last year in Nigeria and Algeria. And the recent kidnapping of British Embassy officials in Ethiopia underlines the security problems facing companies operating in unstable parts of the world.

I think I read a report last week that Nigeria has seen as many kidnappings (or perhaps it was attempted kidnappings) in the past 15 months as it had in the previous 15 years.

There's a growing need for private security services. There's no guarantee ArmorGroup will get its share of the business. But the group is slightly ahead of last years pace in winning contracts.