Napco Security Technologies (NSSC) is — unfortunately — a very timely stock; it makes the widest variety of security products of any of its competitors, explains small cap expert Tom Bishop, editor of BI Research.
That includes electronic locking devices, doors with automated locks that can be wirelessly controlled to lock down a wing, a floor or an entire building — or even just the door(s) into a single classroom with a teacher’s small electronic remote. Such systems can also be found in hospitals, airports, military bases, apartment buildings; you name it.
This company doesn’t just make automated wirelessly controlled locks; it also makes a host of access devices to limit access to a given room, controlled by key pads, coded badges, etc. that allow access to only certain doors.
Napco also manufactures other access control systems of all types where a security guard is sitting at a desk up front, issuing visitor badges, temporary codes/barcodes and can watch everything going on in the building with remote cameras (capable of HD video), lock doors and even control elevators if necessary.
In addition, the company makes alarm/detection systems for your house or any facility to detect intrusion, or temperature or fire, or glass breakage. The company estimates there are probably 30 million old alarm systems installed out there, most of which don’t otherwise have this capability.
On September 13th, the company announced that it was resuming its share repurchasing against the 230,000 shares remaining authorization on an earlier 1,000,000 share repurchase plan (which should continue to keep the share count pretty steady).
Insiders own 38% of the stock so their interests are in line with ours. Also, the company has no debt and is starting to accumulate cash. While management does not provide guidance, analysts expect EPS to rise 29% this fiscal year from $0.41 to $0.53 and 32% next year to $0.70. The stock has backed off a bit in recent trading; I think it is an excellent buy.
