China Security & Surveillance Technology Inc.  (CSR) Trade Now »     Rate CSR  -  Discuss CSR  -  Add to Watch List        

On the heels of a follow-up report by the Security Industry Association (which very conservatively projects Chinese security industry spending by 30% to $11 billion in 2008), we have contacted three independent sources just back from viewing Chinese commercial and government security installations to check just which companies appear to lead the Chinese market. Our sources remind us that the government-sponsored China Public Security Guide estimates the 2008 market at over $26 billion – bigger than the SIA study, but to us clearly less independent.  Our sources are convinced that China Secu

Government contracts are very important for the security industry, but ultimately most of them – even the largest  – should mostly serve as beta-tests and reference sites for what should be a much larger industrial/commercial and institutional market.  Over the long term, we believe commercial/industrial contracts are steadier and involve greater recurring revenues.  But, of course, during economic slowdowns it might just be a big help to depend on those Government contracts. 

"Some 3.5 million visitors will descend on Beijing for the Summer Olympic Games," notes growth stock expert Ian Wyatt, whose latest buy is a play on this upcoming event.

The editor of Rising Star Stocks says, "China's government has mandated all entertainment locations to install surveillance systems, leading us to China Security & Surveillance Technology (NYSE: CSR)."

"China Security manufactures, distributes, installs and maintains security and surveillance systems throughout southern China. China Security sells its watchdog wares to governmental entities as well as schools, museums, sports

CSR has been punished in the recent market downturn, but they continue to win contracts and raise projections.  The Chinese government has their back in an effort to consolidate the domestic security and surveillance industry, which should be a tremendous market opportunity consdiring the size and scope of the country (as well as the Chinese penchant for watching over its citizens shoulders).  Citadel has provided funding via convertible debt instruments that enable the fund to maintain careful oversight over the M&A strategy. 

This is a long term play, and the current market downtur