The Trading Floor

[Arctec]

We introduced Bioscrypt (BYT.T $0.95) back on January 8th at $0.60. This was our first entry into the security sector for 2007 and the following company (GLOI) will be our second. GLOI is tightly held and for existing shareholders that is fine, but when a person is looking to take a new position, it becomes a significant disadvantage. OTC market makers will also take advantage of this situation by manipulating share price so its the type of company that requires patience. If you're looking closely at stocks like this and find that market makers move share price beyond a comfortable range, just wait patiently rather than chase them. The short term volatility only increases risk if they try to take advantage of new buyers.

Canaccord (www.canaccord.com) analysts recently placed a $5 target on GLOI. This would be based upon a 12 to 18 month window and likely contingent upon the company hitting profitable annual revenue of $100 million in 2007 (a realistic objective). This is a fascinating OTC company with an advisory board that reads like the Who's Who of U.S. government and national security. They employ security and risk experts like retired Army General Wesley Clark, onetime FEMA director James Witt, and former NYC police commissioner Howard Safir.


Global Options Group (GLOI/OTC $1.45)
www.globaloptions.com

GLOI is in a very large and growing (but fragmented) market for security solutions and risk mitigation. They are aggresive and have plans to consolidate the risk mitigation industry (estimated at $14 Billion annually) in an effort to become one of the top consulting firms.

Recently the u.S. Congress passed a homeland security bill (anti-terror legislation) valued at almost $50 Billion over the next several years. This demonstrates the importance placed on this industry from both a government, and corporate perspective.

"Our first and highest duty as members of this Congress is to protect the American people, to defend our homeland and to strengthen our national security," said Majority Leader Steny Hoyer.

Overview & Strategic Objectives

The company provides high-end risk mitigation services to Fortune 500 corporations, governmental organizations and high-profile individuals throughout the world. Their services currently include risk management and security, investigations and litigation support, crisis management and corporate governance. These engagements take their staff around the world and are typically highly sensitive engagements where they interact with senior leaders in corporations and governments. Their overall mission is to identify, evaluate, assess, prevent and correct issues that may threaten people, organizations or strategic initiatives for corporations and governments.

Their goal is to become, through acquisition and new product development, a major risk mitigation solutions company. They are frequently in discussions with privately or publicly owned firms in the risk mitigation industry. Potential acquisitions could take advantage of synergies and expand geographic reach into many more countries around the world. The company seeks to leverage their executive-level contacts, management and advisory teams across all their product and service offerings, while building a lower-cost infrastructure than individual businesses could achieve on their own.

According to the Lehman Brothers Security Industry Annual Report 2004, the risk mitigation market doubled in size from 1990 to 2000 and the market is expected to continue its steady growth and triple in size from 2000 to 2010.

Organized into Three major segments:

Investigations and Litigation Support
Crisis Management and Corporate Governance
Risk Management and Security

Their management, staff and advisory boards include security, emergency preparedness, business continuity and terrorism experts formerly in the military and top governments positions, former intelligence and law enforcement officers, professional investigators, and legal and crisis communications specialists.

As an example, the company has performed risk assessments of corporate headquarters, chemical weapon stockpiles, nuclear installations and reactors, factories, yachts, private aircraft, homes, transportation systems, government facilities, political conventions, sports stadiums and sporting events.



An Outstanding Advisory Board
In addition to their management team, they utilize a group of advisors to provide assistance with corporate and governmental contacts, as well as business development. Board members currently include:

a) Frances Cook - former Ambassador to Burundi, former Ambassador to Cameroon; former Ambassador to the Sultanate of Oman and the first female Ambassador from any country in the Arabian Gulf.

b) John Oswald - former partner of the international law firm of Lord Day & Lord; director of numerous corporations, including Preem Holdings, the largest downstream refining operation in Europe

c) Sir Richard Needham - former United Kingdom Minister for Trade and Industry

d) Honorable William S. Sessions - former Director of the Federal Bureau of Investigation; former Chief of the Government Operations Section of the Department of Justice

e) Rodney Slater - former United States Secretary of Transportation; former head of the Federal Highway Administration

f) Honorable William H. Webster - former Director of the Central Intelligence Agency (1987-91); former Director of the Federal Bureau of Investigation (1978- 87); Judge Webster was awarded the Presidential Medal of Freedom and the National Security Medal.

g) Honorable R. James Woolsey - former Director of the Central Intelligence Agency (1993-95); former member of the National Commission on Terrorism; former Undersecretary of the Navy; and former General Counsel to the United States Senate Committee on Armed Services.




Danny Deadlock
Microcap.com

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