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Separation from the Pack in the Homeland Defense Sector

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There was a time when the stock market was ravenously searching for the next red-hot homeland defense play as if they were dot coms in 1999. Investors and venture capital firms were chasing the next-big-thing in security technologies across the board and it seemed every company that made or hoped to make any product at all was finding a way to adapt their widget and create a de facto homeland defense revenue stream.

And very few were successful.

Now, the homeland defense market has evolved further, becoming more Darwinian as investors take a more critical eye at the arena. Like Internet stocks after the dot-com bubble broke, investors are looking for companies that can pierce blue-sky optimism with trust-earning contracts, acquisitions, and management teams. They may be willing to wait on profits but few will wait for real business activity. It is no longer enough just to have a technology that sounds viable. The investment community wants a real player in the industry to say it with the conviction of a long term agreement.

This formidable hurdle weeds out many in the space, any space really. But it also advances the interest and appeal of those that have the ability to attain such important deals. Enter 4C Controls.

4C Controls Inc. (OTCBB:FOUR), offers high technology integrated security solutions providing real-time early warning and reduction of time scales from threat-detection to termination in the field.

Sounds great… but we’ve heard similarly promising descriptions before. Many of those once glittering business plans are now shells waiting for their next ride up the roller coaster.

Conversely, 4C has distinguished itself with business activity that separates it from the pack in many regards. Let’s take a look at a few items:

Management/Leadership:

4C announced it has appointed Major General Khalid Abdulla Mabarak Al Buainain, Commander & Chief of UAE Air Force and Air Defense (Ret.), as Vice President for Middle East Military and Defense Security. Khalid, comes to 4C Controls after a distinguished 32 year career with the United Arab Emirates Air Force and Air Defense, ultimately rising to the rank of Major General, Commander & Chief of UAE Air Force and Air Defense. In addition to his military experience, Major General Khalid has also served as a member and team leader for bilateral senior government discussions between the UAE and many foreign countries.

Khalid’s addition is positive on two levels. First, it gives 4C his unique expertise and his considerable Rolodex. By all appearances, Khalid appears to be a fellow who can pick up the phone and contact potential government representatives at the highest level. Khalid brings ‘street cred’ to 4C and his relationship assets could lead to lucrative contracts.

Similarly, 4C appointed FBI Supervising Special Agent (Ret.) Dr. Philip Hayden as its Vice President, Security Assessment & Threats Analysis. The much decorated Vietnam veteran and FBI special agent will spearhead a threat assessment team that will be critical to 4C’s success.

Acquisitions:  

4C may have accomplished a 1+1=3 objective via the signing of a binding agreement to acquire Zahra Technology LLC (http://www.zahratech.com) and its wholly owned subsidiary Zahra Security Systems and Electricals LLC (http://www.zahratechnology.com).

The Zahra brand is expected to facilitate growth in international sales and operations for 4C. This optimism may be well founded given Zahra’s long list of past and present clients which include:

U.A.E. Central Bank, Barclays Bank, Citibank
ABN Amro Bank, Abu Dhabi Investment Authority
Dubai Marina, Jumeirah Beach Hotel, Zayed University
Cisco Systems, Philips Middle East, Pfizer Intl. Corp.
Toyo Kanetsu, Nestle, ABB, CCC, Pepsi-Cola International
Reuters, Lucent Technologies, British American Tobacco
Estee Lauder, Kinko’s Middle East, Abbott Laboratories
Dubai Petroleum, Saatchi & Saatchi, Shell Middle East

Do these events collectively guarantee 4C’s success? No. Does it separate the company from less capable players in the sector? Absolutely.

The reality is that Homeland Defense isn’t going anywhere. It’s an industry that will continue to grow annually. But the recessionary market and more prudent spending make clear that true performers in the space will earn market share and usually, profits for the company.

These announcements and corporate moves certainly better position 4C Controls to emerge as a leader in a field in need of its services… and competition.

To read the StockUpTicks profile on 4C Controls visit:

http://stockupticks.com/profiles/8-19-08.html

 


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