Longer Term Play

When the Trade Towers came down in 01, communications came to a halt. Cell phones were hit or miss and the regular radio frequencies were so jammed with traffic it was sort of like trying to get your message through a million other calls at the same time. It didn't work. Well, welcome to project 25. We were hoping on holding off on this play a bit more, but now Rita has pushed us to release it now. First off what's a project 25? To spare you all the frills, it's an initiative that Uncle Sam pressed for which calls for a unified communications system. Let us share this with you: "Project 25 (P25) is the standard for interoperable digital two-way wireless communications products and systems. Developed under state, local and federal government guidance and Telecommunications Industry Association (TIA) governance, P25 is gaining worldwide acceptance for public safety, security, public service, and commercial applications. The published P25 standards suite is administered by the TIA in their Mobile and Personal Private Radio Standards Committee (TR-8). Equipment that demonstrates compliance with P25 is able to meet a set of minimum requirements to fit the needs of public safety. These include the ability to interoperate with other P25 equipment, for example so that users on different systems can talk via direct radio contact" Okay as you can see, in this day and age where not only natural disasters such as Katrina and Rita take a toll on our emergency services, the fact that they still believe there are sleeper cells here in America ready to carry out all manner of mayhem. Combine the two and you have a worldwide push for this technology to come together. Well, there is a small company that actually builds the radio's that are compatible with this technology. "IRVING, Texas, June 6 /PRNewswire-FirstCall/ -- EFJ, Inc. (Nasdaq: EFJI) announced today that its EFJohnson subsidiary has received a new order for delivery of Project 25 radios in the State of Alaska. The order, valued at $1.6 million, calls for the company to provide the Department of Defense with its Project 25 compliant portable and mobile radios and accessories. "This order further demonstrates our ability and commitment to provide our customers with Project 25 compliant communications solutions for their critical missions. We are pleased with the continued confidence our military has in our solutions," said Michael E. Jalbert, chairman and chief executive officer of EFJ, Inc." We could go on and on about the orders this outfit has been receiving lately, but think we'll just let the story speak for itself. We are in an age where security will be purchased at any cost. We think EFJI is one of the best ways to capitalize on it. Everyone from the military to security staffing at the United Nations is demanding to have project 25 hardware and EFJI appears to be a great way to capitalize on this. We would not be against taking a position in them at say $10.15, when they get there. Right now they don't trade a tremendous volume, but think that's going to change in the near future. Keep an eye on this one, it's got all the earmarks of a good play. How good? We could see them being a double in 9 months easily, if the word gets out. We bought back into HRS on Friday. This too was a play on communications. When Katrina knocked down cell phones, and hard lines in N.O., HRS was on the ground first, putting up communications systems. Then with Rita approaching, they popped again. This won't have the staying power of EFJI for the long haul, but we're already up on the play and could have more soon. For more FREE trading tips, enter your email address at: http://lb.bcentral.com/ex/manage/subscriberprefs?customerid=12826