Top 10 Performing Security Stocks for March 2006

Company/
Symbol

%
Increase

Stock
Price

Analysis

Authentidate
ADAT

56%

$3.90

Advanced Home Care signed an agreement to use Authentidate's CareFax—a Web-based, HIPAA-compliant application.

The GEO Group
GGI

48%

$33.34

Private correctional/detention center operator GGI increased earnings guidance in March and signed contracts with the state of Idaho and the United Kingdom.

Network Engines
NENG

42%

$3.10

Network security application provider NENG announced deals that will extend its market reach in several international markets.

Optelecom
OPTC

41%

$24.60

OPTC revisits our list this month as they announced a record year in 2005: sales rose 74 percent and net income increased 68 percent.

iSECUREtrac
ISEC.OB

34%

$2.75

This maker of “offender monitoring solutions” using GPS and wireless technologies announced a deal with the Delaware Department of Corrections.

MDI
MDII

34%

$1.46

Integrated access control provider MDI reports awarded contracts in excess of $1 million to upgrade systems at several enterprise customers.

Inksure
INKS.OB

26%

$3.80

This provider of covert machine-readable security solutions for the prevention of counterfeiting, fraud, and diversion reported a 70 percent revenue increase for 2005.

WatchGuard
WGRD

26%

$5.10

WatchGuard announced it expanded its network of partners selling its Firebox security appliance with D&H, a $1.3 billion distributor.

Lasercard
LCRD

23%

$22.50

Having traded as low as $5 during the past year, smart card manufacturer LCRD announced a $1.8 million follow-on order for Canadian resident cards.

American Science
ASEI

23%

$93.40

ASEI announced a $45 million deal from a Middle East customs agency for its x-ray detection systems to secure strategic borders, seaports, and airports.