Nasdaq OSI Systems Falls Despite Security Focusposted by MR WAVETHEORY at 8/13/2006 02:32:00 AM
OSI Systems (Nasdaq OSIS) which makes the RapidScan systems found in many airports failed to catch a bid on Friday in spite of its position in the luggage scanning market. OSI Systems opened 19.48, having traded much higher in pre open, and then closed at 18.92 (-.22).
OSI also announced a agreement with TraceGuard to develop trace scanning systems to detect explosives. TraceGuard performed very well, gaining 0.60 to close at 1.54 (+.60). OSI announced:
TraceGuard Technologies Inc. (OTCBB: TCGD - News), a developer of innovative security technologies and solutions, today announced that it has entered into a 12-month joint development program with Rapiscan Systems ("Rapiscan"), a subsidiary of OSI Systems (NASDAQ: OSIS - News), in order to develop TraceScan, an advanced combined bulk/trace detection system for interdiction of explosive devices and weapons Upon development, TraceScan will be marketed exclusively by Rapiscan primarily to the U.S. Government and also through its global direct sales and distributor network.
Security stocks have not performed very well of late. The renewed focus on luggage scanning might bring security stocks back into focus.
Mr Wave Theory