American Science & Engineering, Inc. (NASDAQ:ASEI)

Products well placed in the current security environment; has lost some 45% of its value in the last five months; hold steady to the end of primary bear, then fly.

Buying a growth company with good growth prospects "on sale."

The technical leader in its field. It has a proven growth records and in a world that increasing becomes less secure each year, the demand for the ASEI product line will only grow.

Sell threat device detection equipment

too expesnisve too much competition

If they don't get bought up by the competition, they will trounce them in the security field.

Huge haircut in first half of 2006; continued fears and security spending should keep the orders coming in.

One of the major suplier of equipment needed at ports to scan metal shipping containers for arms, plastic explosives, etc

Like GARP? Then take a gander at ASEI. Here is a company with a strong record of growth which is trading with a P/E in the low teens. Want a cherry on top of this delicious sundae? Well consider the net cash of $5 a share on the balance sheet.

It's like those X-ray glasses they always used to advertize on the back of my Ritchie Rich comic books - but for real!

Security ain't going anywhere, and ASEI's machines seem to boast superior technology -- all from a smartly and efficiently run company. Sign me up.

Please forgive this cut&paste:

The Company's principal activity is to develop, manufacture, market, sell, maintain and provide maintenance and warranty services as well as research, engineering and training services with respect to X-ray inspection and other inspection solutions. The products are used for critical detection and security applications. These security applications include X-ray inspection and screening systems for combating terrorism, drug and weapon smuggling, trade fraud and illegal immigration. These applications are used by seaport and border authorities, federal facilities and military bases, airports and corporation in the United States and around the globe."

The investment thesis is that port security has yet to be adequately addressed and there is a global market. P/E is below expected growth of 20% annual and 20% annual seems low for this category.

ASEI's share price took a hit but it's had more orders come in. This one seems to be an overreaction in a down market and who am I to argue with all the "outperforms" on this one???

This one has fallen far enough. I own it for real at 60 and am happy to add it to my CAPS portfolio at this price.

Sadly, global terrorism isn't going away any time soon, but this company's products may help the governments of the world prevent some attacks. There is a healthy demand for ASEI's products that should only increase. Managment is a little shakey.

The backscatter will scatter all over the world.

ROBOTS ARE GOOD

As Iran moves closer to obtaining nuclear weapons, this country will be turned upside down with fear and insecurity. Given Iran?s active and long-standing support of terrorist organizations, we will face the very real possibility of a nuclear weapon making its way inside our border. Every container entering a U.S. port will be seen as a threat. Every truck crossing the Canadian or Mexican border will be seen as a threat. At that point we will have no choice but to screen, and screen, and screen. ASEI has a well-developed technology for radioactive threat detection (RTD) which it is able to deploy in the screening of both cargo and vehicles. Furthermore, this equipment functions in a manner which does not unduly disrupt the flow of commerce. At present, we screen very few containers entering our ports and very few trucks crossing our border. The demand for RTD screening equipment will be enormous and the potential market is almost limitless.