If the terrorists lose, ICx Technologies may go out of business, which means the terrorists win. There is no jihad against paradoxes.
ICx is planning a $184 million IPO, according to an S-1 filed yesterday. The homeland security company develops sensing technologies for government agencies and corporations like FedEx and Disney.
How candid can a homeland security company be in an SEC filing? From the looks of it, not very. In the “Growth Strategy” section of the S-1, nowhere does ICx list, “maintaining a constant state of fear” or “the increased rate of things blowing up.” ICx also refuses to acknowledge the risk to ongoing operations that “things may stop blowing up.”
Instead, the closest ICx gets to admitting that it relies on a thoroughly terrorized populace is here:
Our ability to grow will depend in part on the rate at which markets for our products develop and on our ability to adapt to emerging demands in these markets. In particular, our business depends on our ability to offer a broader range of products and services to meet demand for integrated solutions. In addition, geopolitical developments, terrorist attacks and government mandates may cause sharp fluctuations in the demand for our products.
Translation – if you’re long on big explosions, you’re long on ICx. No one is denying the need for basic security (and increased security in certain obvious places, like U.S. ports), but the real question is whether we want a thriving homeland security market in the corporate and private sector, one in which every Disney store needs bomb detection. Do we want ICx to succeed in the first place? Are we long on terror, and will there ever be a time in which an unexpected surge in the share prices of homeland security companies suggest imminent attacks (terrorist insider trading)?
Lehman is lead underwriter on the IPO with Goldman, JPMorgan, Morgan Keegan and Needham & Co. acting as not-quite-so-lead underwriters. The company is planning to trade on the Nasdaq under the ticker ICXT.
ICx Technologies Plans IPO [Forbes]
ICx S-1 [SEC]
Posted by jt , Aug 08, 2007 11:38AM
this brings to mind the initial plot of the most recent Bond flick Casino Royale...
Posted by Blunt Smoke , Aug 08, 2007 11:39AM
Long gone are the days I could set off a major firecracker as big as my fist and not have to worry about some uptight code-orange mf calling 5-0 on me cuz he thinks a tree biting it 300 yards away means Osama is holed up in his backyard?
Posted by roger , Aug 08, 2007 11:39AM
homeland security is a fraud, a hoax even. 40 billion a year spent busting, on average, 6 homeless mental retards a year. This ipo is doomed. the US is as vulnerable as it has ever been and likely always will be, and there are way more dangerous things in the world. like budweiser. and alternating current. and rain.
Posted by Blunt Smoke , Aug 08, 2007 11:43AM
jt - lol
Keith it's a free country, sorta, so if people want to buy into ICx, either their stock or ideology, then so be it. Dude you know how much ordinance companies like Grumman, Lockheed and Boeing produce? I don't see u worrying about people buying into those companies who essentially manufacture death-inducing objects. Death is their business and they do it well. Death is ok by them.
Posted by anon , Aug 08, 2007 11:58AM
I predict this thing will surge in price as people pile into it hoping that it's an effective hedge against terrorism.
Posted by nowayman , Aug 08, 2007 12:11PM
The symbol should be ATAX instead...
Posted by Blunt Smoke , Aug 08, 2007 2:09PM
10 million illegals in the country...that doesnt seem to bother politicians who's "caring" in effect stalls any solution (like kicking them the out) so they never have to make a real decision.
Homeland security is just another catalyst for politicians to steer contracts to friends/constituents in return for kickbacks/votes. Nothing more, nothing less. FEMA is in the same boat. Hopefully the boat will sink but not likely as long as we keep voting for the same 2 parties.
Posted by abe , Aug 08, 2007 2:55PM
Terrorist insider trading was a tactic of the Shining Path not that long ago.