Longer Term Play by wallmann
When the Trade Towers came down in 01, communications came to a
halt. Cell phones were hit or miss and the regular radio frequencies
were so jammed with traffic it was sort of like trying to get your
message through a million other calls at the same time. It didn't
work. Well, welcome to project 25.
We were hoping on holding off on this play a bit more, but now Rita
has pushed us to release it now. First off what's a project 25? To
spare you all the frills, it's an initiative that Uncle Sam pressed
for which calls for a unified communications system. Let us share
this with you: "Project 25 (P25) is the standard for interoperable
digital two-way wireless communications products and systems.
Developed under state, local and federal government guidance and
Telecommunications Industry Association (TIA) governance, P25 is
gaining worldwide acceptance for public safety, security, public
service, and commercial applications. The published P25 standards
suite is administered by the TIA in their Mobile and Personal
Private Radio Standards Committee (TR-8). Equipment that
demonstrates compliance with P25 is able to meet a set of minimum
requirements to fit the needs of public safety. These include the
ability to interoperate with other P25 equipment, for example so
that users on different systems can talk via direct radio contact"
Okay as you can see, in this day and age where not only natural
disasters such as Katrina and Rita take a toll on our emergency
services, the fact that they still believe there are sleeper cells
here in America ready to carry out all manner of mayhem. Combine the
two and you have a worldwide push for this technology to come
together.
Well, there is a small company that actually builds the radio's that
are compatible with this technology.
"IRVING, Texas, June 6 /PRNewswire-FirstCall/ -- EFJ, Inc. (Nasdaq:
EFJI) announced today that its EFJohnson subsidiary has received a
new order for delivery of Project 25 radios in the State of Alaska.
The order, valued at $1.6 million, calls for the company to provide
the Department of Defense with its Project 25 compliant portable and
mobile radios and accessories. "This order further demonstrates our
ability and commitment to provide our customers with Project 25
compliant communications solutions for their critical missions. We
are pleased with the continued confidence our military has in our
solutions," said Michael E. Jalbert, chairman and chief executive
officer of EFJ, Inc."
We could go on and on about the orders this outfit has been
receiving lately, but think we'll just let the story speak for
itself. We are in an age where security will be purchased at any
cost. We think EFJI is one of the best ways to capitalize on it.
Everyone from the military to security staffing at the United
Nations is demanding to have project 25 hardware and EFJI appears to
be a great way to capitalize on this.
We would not be against taking a position in them at say $10.15,
when they get there. Right now they don't trade a tremendous volume,
but think that's going to change in the near future. Keep an eye on
this one, it's got all the earmarks of a good play. How good? We
could see them being a double in 9 months easily, if the word gets
out.
We bought back into HRS on Friday. This too was a play on
communications. When Katrina knocked down cell phones, and hard
lines in N.O., HRS was on the ground first, putting up
communications systems. Then with Rita approaching, they popped
again. This won't have the staying power of EFJI for the long haul,
but we're already up on the play and could have more soon.
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About the Author
Wallmann has been publishing a daytrader's stock newsletter since early 1998 and continues to bring his reader top quality plays for the short term and a few for the longer term. A free trial is available to all.
