L-1 Identity Solutions, Inc. (ID)

Well I have this one in my portfolio because I used to own Bioscrypt and of course ID bought Bioscrypt. I think that this company has a future of up side but like alot of things that I seem to pick the upside happens way to long in the future for any benefit to acutally be realized by me. I am just holding onto to this for now to see where it goes.

Very well positioned in digital documentaion and access control growth industry.

Backlog of $1.1 billion covering 84 percent of revenue for 2009. most companies would love to replicate.

2008 free cash flow $47.5 million. Adjusted EBITDA and free cash flow covers operating expenses, fixed debt service, and capital expenditures while providing excess cash to pay down debt.

The $528.6 million non-cash charge they took for goodwill, intangibles and other long-lived assets removes albatross around the neck of future financial reporting.

The entire security industry is going through a multi year boom cycle. It is way undervalued at this price. Barriers to entry for new competitors are very high. Once th P/E get a little bit bettter will be a potential takeover target

will become the dominant player in security

ID is the premier biometric identity company led by Robert LaPenta, former CFO of LLL Communications. They have face, hand, finger, palm & iris identification technologies. ID has been formed from five companies, Viisage, Identix, IBT, Iridian and an secretive intelligence firm. They are also buying a Canadian firm (being contested by a raider but the raider will lose) to open up that market. Mr. La Penta is a true visionary with his feet on the ground and great entrepreneurial abilities. Buy leadership, it is THE element in short supply. BD

Valuation is way too high for what they are making and what they will make. This is well overdue for a correction.

quadruple in short time; likely due for a fall

Has a lot of government contracts that will increase its sales.

This is the future meeting reality. It might have a rough road with a lot of ups and downs, but the US government has mandated biometric identification, and ID has a very unique position as a one-stop shop. I got in before the merger with Viisage.

expanded way too rapidly

George Tenet now on Board

This company is being carefully constructed by ceo Bob lapenta, one of the L's of L3 communications. It has super govermental connections, and is poised to breakout in the next year to two. Recent quarterly report included huge one time charges, and should turn profitable in the upcoming year. Speaking of upcoming, They offer far and away the best product in their field with proven management.

Will be top biometric company, only the time frame is in question. Buy point 14.

a stock just waiting to explode. if you can buy it in the $13.90-$14.12 range pick some up because it is just a matter of time before we see it beginning to move towards $17.00. it will eventually kick up over $20.00 per share but that isn't going to happen until late next year or early 2008.

surprise earings

Idenity and national security issues are a big concern which should make this a big player in years to come. They cover a lot of territory, have a lot of big name players and a lot of clout on their team.

Great security companies will soar and I think ID and IDN are two with potential.

big brother will track our every move

Finger scan, retinal, id card....who are you really? It is no longer an option and yes it may be invasive to privacy, but the consequences of no identity can be dire.