Stocks: The New World's Armor (Security Stocks for 2006)

The New World's Armor
By Luke Burgess

Archimedes' Lever Portfolio
Stock Bought Current % Gain
Candela (CLZR) $10.50 $14.87 +41.62%
Optibase (OBAS) $5.00 $5.23 +4.6%
Before we get into today's Archimedes' Lever I want to quickly let you
know of a change coming in the newsletter.

From here on out your Archimedes' Lever will be issued on Thursdays as
opposed to Mondays. So you will receive your next Archimedes' Lever on
December 22.

Ok, that's out of the way, let's jump into it.

The Future Security and Defense
A Time Tested Market

Today I'd like to tell you about two security and defense products that
I believe could have a major impact in the security sector over the
coming years.

Many investors are beginning to lose interest in the security and
defense stocks and have turned to the energy or metal sector. I like the
energy and metal markets right now too. But the fact is we are going to
need security as long as there are people on the planet that threaten
our safety.

Now here's what scares me today. Things have been relativity quiet in
our country since the attacks of September 11. Too quiet if you ask me
when you consider all the geopolitical forces at work.

It seems the next big attack can happen at any time. It's like we're
living on borrowed time. In fact, back in February, the director the CIA
himself, Porter Goss said this:

"It may be only a matter of time before al-Qaeda or
other groups attempt to use chemical, biological, radiological, or
nuclear weapons."

Truly frightening words from the world's leading intelligence
organization.

Now like I said before, I like the homeland security market. It is not
something any administration, republican or democratic, is going to
overlook. And essentially it's a "spend whatever it takes" initiative.
You can't put a price on safety.

Defense and security devices change. Whatever new defense technology
comes out, someone will figure a way around it. Superior protection
today will be obsolete tomorrow. This is just the way the world works.

So, companies need to invent security and defense products that are not
only innovative but highly effective.

This leads me to the two products I want to tell you about today.

Blast Wrap
Terrorists Beware

The first product is called BlastWrap. Now this stuff really amazes me.

BlastWrap is like superman strength bubble wrap that is able suppress
massive explosions.

BlastWrap is scientifically engineered and designed to remove much or
most of the energy from explosions dramatically reducing the impact on
people and property.

This unique technology has already effectively proven to mitigate blasts
and suppress flash fires regardless of the material or compound causing
the explosion.

Now here's the best part. BlastWrap can be used to create new finished
products or conform to fit existing products.

In fact, BlastWrap already lines the insides of 192 trash cans in the
Washington Metro system.

According to the makers of BlastWrap, the cans can withstand the
explosive force of more than 12 pounds of high explosives without coming
apart. That's eight times as much explosive as steel-reinforced trash
cans regularly sold as blast-resistant.

BlastWrap can be used in

* Building materials
* Ordnance containers
* Aircraft protection systems
* Explosives storage units
* Decorative facings
* Linings
* IED and EOD threat management (permanent or portable)
* Wall components
* Barriers (permanent or portable)
* Vehicle protection systems
* Trash Receptacles

Filled with volcanic glass, salts, and other materials BlastWrap removes
substantial amounts of energy from impinging shock waves, almost
regardless of intensity, and dramatically suppresses shock reflections
in confined spaces.

These results are accomplished passively without dispersal of agents,
without sensors and without power.

When incorporated into finished products, BlastWrap protects in two
basic categories: barrier and container.

Barriers include temporary and permanent wall units; linings applied to
walls, blast tables, suspended ceiling panels, suspended free standing
or floor mounted barriers, and modular barrier or revetment kits.

Containers embrace everything from boxes to magazines, including wheeled
mobile storage units in which explosives can be safely moved from one
work station or site to another.

To put BlastWrap in a real-life situation, let's suppose a terrorist put
a bomb into a metal trashcan that wasn't protected with BlastWrap.

When the supposed bomb exploded, lethal metal fragments would be sent
flying through the air, injuring and killing anyone within the blast
radius.

Now let's suppose the same situation were to occur except this time the
trash can were lined with BlastWrap.

BlastWrap would substantially reduce the blast impulse saving many
innocent lives.

The benefits of BlastWrap are substantial. BlastWrap:

* works 24/7/365
* does not dispense chemical extinguishants
* is purely passive mitigation, so it uses no power, alarms,
sensors, or activation system
* never fails
* is light weight
* is low cost

BlastWrap is something that you really need to see to believe.

Go to the link below and click on the "watch video" link next to Fox
News TV13 Tampa under the Product Demonstration heading.

[ click here http://www.blastgardintl.com/product.asp ]

Pretty impressive stuff huh?

When detection and prevention strategies fail, BlastWrap offers
protection against explosions.

Hopefully detection strategies won't fail, which brings me to the next
new product I want to talk about.

The zNose
Putting K-9 Units Out to Stud

The zNose is basically like an electronic bomb-sniffing dog. Only with a
better sniffer.

The system provides comprehensive, real time analysis of any chemical,
vapor, or toxin in less than ten seconds with part-per-trillion
sensitivity.

Incredibly it can instantly detect virtually any kind of explosive as
well as over 3,000 different chemicals and compounds.

Pretty neat huh?

Government agencies and public companies such as the Army, Navy, Air
Force, Marines, US Department of Agriculture, SC Johnson, Honeywell
Corporation, Lockheed Martin and Northrop Grumman have already invested
millions in the zNose.

The sad part to this story is that this technology has only been
recently perfected. If it existed ten years ago it could have saved
countless lives.

The zNose could have:

* prevented the maniac shoe bomber Richard Reid from ever boarding
American Airlines flight 63
* thwarted the 1995 attack on the Tokyo subway system that killed
dozens of commuters and injured over 5,000 civilians
* detected the explosives used in the Oklahoma City bombing and
saved the 170 innocent Americans who were inside.
* prevented the Muslim extremist from bombing the London Buses

But let me tell you about how the zNose would work in a real situation.

Let's suppose a suicide bomber wielding a water bottle full of chemical
explosives attempts to board an airplane.

Using the aging airport screening methods, the explosives would slip
right through potentially killing and injuring hundreds of innocent
commuters.

But the zNose would detect the chemical explosives that the traditional
metal detectors couldn't possibly identify. Security officials would be
able to respond within 10 seconds saving hundreds.

Once the zNose detects any suspicious odor, the system's software
creates a visual display of the chemical onto any conventional computer
screen, making it easy to quickly evaluate and eliminate the threat.

The zNose is capable of scanning thousands of people per hour. And
here's the best part.

The zNose is a non-invasive security device. That means no more security
officials feeling you up when you go through checkpoints. And what's
more is that the zNose is incapable of isolating anyone due to race,
religion, nationality, or creed.

Not only that good news not only for commuters but also for airports who
are constantly being scrutinized for discrimination. What airport would
want the zNose?

The zNose compliments any security measure.

I've identified four key subsectors of the homeland security market
where I believe the zNose will revolutionize security.

Subsector #1
Airport Security

I've already talk to you a little about airport security but I want to
go into a little more detail to explain the potential for the zNose.

Like I mentioned before the existing non-visual screening techniques are
limited to metal detection. But that's not enough to stop today's smart
terrorists. The zNose can detect threats beyond the conventional.

In the post 9/11 world, governments and private sectors are already
willing to spend more to protect air travelers.

By most estimates, airports around the country are expected to spend
close to $4 billion to modernize baggage and cargo screening in the next
five years alone.

And that's just the tip of the iceberg.

The total private aviation security spending is expected to surpass $8.4
billion in the same time period.

Subsector #2
Maritime Port Security

Our nation's ports have been identified as one of the biggest security
threats. This has led to the development of new container security
systems that will give way to an $840 million market over the next few
years

When you look at the numbers, as I have, you begin to realize how big
the problem really is.

Over 9 million cargo containers arrive to American ports each year. And
here's the truly frightening part...only 2% of the seaport cargo is
thoroughly inspected!

There are 185 deep ports in the US and most are in major cities.

And let me give you an idea how big of a threat this is.

If one 10-kiloton weapon were detonated in a major seaport it could
instantly kill upwards of 1 million innocent Americans. Direct property
damage could excess $500 billion. And direct disruption of trade could
result of a $200 billion loss with and indirect loss of over $1
trillion!

And I haven't even begun to discuss other illegal contraband that this
technology can detect like illegal drugs that are transported through
seaports by the tons each and everyday.

Subsector #3
Border Security

The amount of illegal immigrants easily entering the United States is
nothing less than shocking

Last year the US Border Patrol arrested 1.1 million illegal aliens who
attempted to cross into America along the 1,950-mile U.S.-Mexico
border...up more than 24 percent from2003.

In a single day, more than 4,000 illegal immigrants walk into Arizona
alone.

Customs and Border Patrol argents made over 56,000 seizures of illegal
drugs weighing a total of almost 3 million pounds with an estimated
street value of over a billion dollars.

The zNose is able to detect any vehicle entering our borders and
identify them for threats.

Subsector #4
Building HVAC Security

Even the air we breathe is at risk. Any terrorist could easily slip a
chemical agent into any office or shopping mall HVAC system and kill
hundreds of innocent people.

Consider the dangers

* A pinhead full of ricin is enough to kill an adult man.
* Phosgene can cause your lungs to fill with water causing
suffocation.
* The nerve gas sarin can shut down your nervous system causing
death in minutes.

Building HVAC is the easiest target for a terrorist attack. Think about
it. When you go to the mall there is no virtually no security; that is
other than the rent-a-cops. And I don't know about you but I wouldn't
trust those guys with a fire cracker.

The zNose would easily install into a building's HVAC system and protect
those inside.

The security and defense products I mentioned in today's Archimedes''
Lever, BlastWrap and the zNose, are only two products that promise to
keep our families and ourselves safe in the 21st century.

Like I mentioned before the security and defense markets aren't going
anywhere despite how Wall Street has almost turned it back on the
sector.

In the near future we are going to see real changes, like the zNose and
BlastWrap, in everyday life.

Until next week,

Luke Burgess

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Next Century Stocks http://www.nextcenturystocks.com
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