Summary: ON SALE
Score: 17/20
MOS: 64%
Share Price: $23
Sticker Price: $66
Napco Security Technologies (NASDAQ: NSSC) is a leading manufacturer of security products for intrusion, fire, video, wireless, access control and door locking systems. Founded in 1969 and headquartered in New York, its products are sold and installed by tens-of-thousands of security professionals worldwide, from security dealers to locksmiths, in commercial, industrial, institutional, residential and government applications.
Sounds like a relatively boring business, right? Remember, boring is good. I always like to reflect on the gold rush from 1848 – 1855. The people who made money during the gold rush WERE NOT the people mining for gold. It was the people supporting that trend that became rich. In other words, the people selling pickaxes, shovels, and jeans (Levi’s was founded in 1853 as a more rugged clothing option for gold miners).
This is very similar to the cryptocurrency and cannabis stock industry. Don’t invest in the trend. You will rarely make money. Invest in that which SUPPORTS the trend. I’ll talk about that more within other emails.
As long as there are physical structures, security systems will be needed. And typically once a security system is installed, customers rarely have them uninstalled. Talk about a sticky business!
Napco is also one of the top 30 most popular stocks in hedge funds at the moment. It’s no wonder Tykr has Napco rated as ON SALE with a score of 17/20.