Counter-Terrorism Play – FLIR Systems Inc.

All week long on his “Mad Money” TV show, Jim Cramer has been focusing on a huge trend that he doesn’t see going away anytime soon. That trend is secular in nature and involves protecting the United States against homeland terrorist attacks and counter-terrorism. “I believe this theme like the “Mobile Internet Tsunami,” is one that you can count on for the long-haul,” Cramer said. One huge slice of that market, $5.9 billion worldwide to be exact, involves Infrared cameras and night-vision systems. With this in mind, Cramer highlighted another terrorism stock that he said is the most interesting of them all and produces a technology that helps us to detect threats. That company is FLIR Systems Inc. (NASDAQ:FLIR), one of the premier makers of infrared cameras and night-vision technology. “I think they’re the best player in the thermal-imaging game,” Cramer said. FLIR gets about 53% of its sales from government systems division, 17% from commercial applications and the remaining 30% from infrared maintenance and infrastructure systems, a segment that the company controls a 40% market share. Overall, the company controls 22% of the thermal-imaging market due to their role as a lost-cost, high-volume supplier that continually brings to market new technologies at competitive prices. Cramer pointed out that FLIR is working on developing an infrared camera that costs under $500, which would put it well below the average cost of $3,000. The company’s technology is used in everything surveillance and drug enforcement to special ops and infrastructure protection. Some of their customers include US military bases, major US airports, nuclear facilities and any number of universities, utilities and contractors. “FLIR Systems sales grew 50% last year,” Cramer said, “and with 38% of its sales now coming from overseas, the company is rapidly becoming a global powerhouse.” The only negative thing Cramer could find on FLIR is a big intellectual-property case brought against the company by Raytheon Company (NYSE:RTN). But Cramer thinks that case will go FLIR’s way since the judge has already dismissed several of the plaintiff’s claims. The stock isn’t expensive trading at just 18.8 times earnings with a 19% long-term growth rate. Cramer said the company reports earnings next week and then holds an analyst day on Nov. 2. He advised viewers to buy the stock if it dips anytime soon. Get the scoop on tomorrow’s hottest trade ideas – TODAY! BeaconEquity.com PREMIER PICKS have an amazing track record. Join this select group and ride the profit wave!

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