The shootings that have occurred at our schools are tragic and heart breaking. There is much debate about gun control. One thing I think everyone can agree on is that just like after 9/11 there was a need to greatly step up aviation security, I believe there needs to be efforts to improve security at schools.
One such company that is attempting to do this is Napco Security Technologies, ticker symbol NSSC. In the fourth quarter earnings release, Richard Soloway, Chariman and President stated, “Our advanced wireless locking solutions, marketed by our Alarm Lock, Marks and Continental Divisions, have shown particularly robust growth by offering a highly versatile, cost-effective and easy-to-install access control solution to a number of market verticals, including health care, education and government. Other locking success stories for this past year include the LocDown™ intruder lock, by Marks, which enables a teacher to lock his or her door safely from inside the classroom in the event of an active-shooter incident.”
On the conference call, Mr. Soloway stated, “We have more than 500 schools of all different types, both K-12 and higher ed schools. And we have our sales team beating the bushes and meeting with the management of the schools and the architects of the schools and the different family groups that are with the K-12 and explaining what we do. And more and more people are buying into it.
We also have something we put out called the savvy report where we are trying to get the schools — we have written this report, generated by us. We are trying to get it sent all around the country through the educational tier of business where it tells schools how to protect themselves from active shooters, how to build the proper type of lobby and bulletproof glass, what type of access control and lock down systems you should have
There is no unified regulation for schools. There is like after 911 the TSA was created and they regulate passengers to go onto planes. But nothing has been done since Sandy Hook even though there is an active shooting that takes place near a school or in a school every 13 days.
NSSC reported $0.18 EPS for the fourth quarter of fiscal 2015. They reported $0.25 for the fiscal year 2015. Analysts have estimates for $0.39 EPS for fiscal year 2016. What is interesting, is the CEO gave very bullish commentary on the conference call and said fiscal 2017 the company will be targeting $100 million in revenues and $1.00 EPS. As of this article, NSSC was trading at $6.75.
Disclaimer: I am long NSSC. This is not investment advice. The valuation section does not represent price target predictions whatsoever. The stock in this article may never appreciate in price and may depreciate in price. Do not make investment decisions based on this article. This article is for information only. I am not an investment advisor. I am not responsible for your investment decisions. I may sell my position in NSSC at any time.