JBL: Security Matters

Hurray for the British and the intelligence units who this week thwarted a planned terrorist attack. The plotters reportedly were planning to blow up as many as 10 different planes after those planes had left London's Heathrow Airport.

Although potential terror attacks cause oil prices to rise and increase security costs, the market has shown the ability not to be roiled by them. It would take the destruction of significant infrastructure and the killing of innocents, as happened on 9/11, to also bring down the markets.

We are definitely safer, but we're still not safe. It is hard to defend yourself against people who are willing to take their own lives just to take yours. However, one stock certainly benefited from the news about the thwarted attacks, and I believe it still has a lot of upside.

That company is American Science and Engineering (ASEI Quote), which I own. Its shares took a big hit this week from disappointing earnings, going all the way down to $36.03. I first recommended, and bought, this stock when it was in the high $50 range, but it has gone significantly lower since.

Immediately after the latest terror attack was thwarted, however, shares jumped from their lows and into the mid-$40 range. The market realizes that security is a big part of our world for the foreseeable future. I'll admit I was early getting into the stock, but I still own it and think it's a solid pick.