Fergie's Tech Blog

Security stocks soar after London blasts

Here's a report that is, unfortunately, not surprising.

A Reuters newswire article on CNN/Money reveals that:

Shares of security-related companies, including Internet video company IPIX Corp. and bomb detection equipment maker Isonics Corp., jumped sharply in premarket activity Thursday, after explosions ripped through London's transportation system.

Also, shares of larger U.S. defense companies, such as General Dynamics, Northrop Grumman, were expected to outperform the broader market on expectations that the blasts could boost security-related spending.

"It is obvious that homeland defense stocks would, unfortunately, rally about any news and concerns over terrorism," Fulcrum Global Partners analyst John Balliotti said in an interview.

posted by Fergie @ 7/07/2005 07:43:00 AM