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Speculative play on airline security (IDN)

|Includes: Intellicheck Mobilisa, Inc. (IDN)
As of this writing, a main terminal at Newark Airport is closed for a security breach. (Someone walked from the public area to the cleared area without going through screening.) Earlier there was the Detroit incident, attributed to someone on a list not getting stopped.

With security on everyone's mind, some stocks are getting press attention and have started to pop. Intellicheck Mobilisa (NYSEMKT:IDN) was up 56% in a day, after their CEO was interviewed on The Street. 

IDN offers a hand-held scanner that overcomes the "bad guy on the list we didn't check" problem by searching multiple databases simultaneously. Its a pretty neat idea and its in use on over 70 military bases and federal installations.

IDN is a micro cap, with a $100 million market cap and $12 million in sales. It trades around $4.

In the quarter ended September 30, 2009, revenues of $3.7 million were fairly evely divided among three segments: Government ID, Commercial ID and Wireless R&D. The Government and Commercial ID segments showed positive year-to-year growth of 10% and 8% respectively. Wireless was off slightly, down 2%

Over the 9 months ended September 30, revenues were were $9.8 million, up 32%. The biggest increase (51%)  was in Wireless R&D, attributed to work on a Navy project. Sales in Commercial IDs rose 20% on the strength of sales of software licenses to a telco. 

Order backlog on September 30, 2009 was $7.2 million down from $9.4 million a year earlier.

Year to year results may not be entirely comparable, since Intellicheck merged with Mobilisa (2008) and former competitor Positive Access (2009) 

The touts on Yahoo are calling IDN a billion dollar company. That's a stretch. Their products seem solid, but I figure anybody with decent head for bar code technology and an aptitude for setting up database searches could make a competitive product. There are probably two or three laid-off IT guys from Wal-Mart or A&P working on this in their basement right now...but don't tell the pumpers on the Yahoo message board.

IDN doesn't fit my investment profile, but any day traders or speculators here may be interested.

Just my opinion.

Disclosure: No position