Well, this is my share for 2004.

The grounding of BA flight 223 to Washington has been all over the news this week. Along with the pictures of police armed with semi-automatic weapons and demands for armed rangers on planes the question of flight security is firmly back on the agenda.

Enter 7m British company Image Scan Holdings whose 3D X-ray baggage handling technology represents a 'Best of Class' solution to problems of baggage screening.

The advantage of Image Scan's machine over convential 2D machines is that it provides a 3D view of a scanned bag - providing psychological depth clues which have been shown to be important in identifying threat objects. 3D views are currently provided by CT scanners but these are slow and expensive. Image Scan's machine provides comparable results using X-ray. It is much less expensive and involves no loss of speed over conventional 2D scanners



Contracts are being signed and some major OEMs are trialling Image Scan's cameras in their own systems.
Broker forecasts are for EBITDA breakeven this year and eps of 6p in 2005 (shares are currently 39p to buy). The market Cap is just 7m

The FAA (now TSA) are swimming in grants with $Millions and $Millions being awarded to security companies. They have purchased two machines from Image Scan (machines are also on trial at Heathrow and Midlands airports) and have paid ISH for the development of 3D Image Threat Projection software which has been installed in beta form on these machines. Threat Image Projection(TIP) software should become compulsory on all machines during 2004. It trains bagage handlers and screens their performance by introducing threat images (knives, guns etc) into the image captured by the X-ray scanner.

What is better, they are not a 1 product company. The pipeline is exciting. They have a range of 3D solutions for industrial non-destructive testing available now, medical applications are ivolved in development of an automated system related to cervical smeer test screening expected 2005- currently the only unautomated major screening programme in the UK... And they are developing a 3D scanner for examining occluded electrical components post-assembly. Key IP is in the area of X-ray examination of plastic and non-magnetic components.

Image of an all-plastic inhaler pump
using ISH's DEX camera for industrial/medical
non-destructive testing:

(Key IP is in the area of x-ray imaging plastics and non-magnetic metals)

Look a very interesting prospect for 2004, IMO. The share price slid relentlessly last year but enjoyed a bounce last month. That trend re-commenced last week. Sitting on 1.4m cash (having raised fresh funds in the summer) and having now transitioned from pure r&D into a company actively marketing its commercial products there appears little downside in the price (the FD was buying at 35p). Upside looks considerable.

Durlacher published a research note in November - well worth getting hold of a copy. A couple of snippets:

"International legislation has delivered the security sector its most significant boost for almost a decade with the entire security industry looking set to become a hot sector for the next couple of years"

"We believe the Image Scan instrument to be 'best in class' and currently the only real time 3D X-ray device in the industry"

"Growth in the security sector has been in excess of 50% pa over the last 2 years....with equipment replacement cycles falling from an average 6 years to nearer 4."

Order potentially worth 1m from Scanna expected shortly...

"We believe Image Scan presents an immediate and unique opportunity to invest in the rapidly expanding global security markets"


To take just one element of what ISH are involved in, the importance of the 3D TIP software is conveyed in this extract:

p.32-33
"Following the September 11th attack, Dillinghams testimony [22] was provided before the Committee on Commerce, Science and Transportation, US Senate to discuss security concerns with:
i) aviation-relatedcomputer systems;
ii) airport access controls and
iii) passenger andcarry-on luggage screening including how the USA differs from other countries.

This committee had earlier reported in the year 2000 that there were several weaknesses found with screeners in tests in the USA. In 1987, screeners missed 20% of potentially dangerous objects and recent tests approximating real threats showed that the performance degrades even further.

The main problem is because of less experienced staff, large turnover because of low wages, limited benefits, and repetitive nature of the work. In addition, the amount of work at airports makes it impossible to check every bag (over 2 million passengers and their bags must be checked per day in USA alone).

Air carriers can use their own employees to conduct screening activities but mostly they hire security companies to perform screening. In the USA, Federal Aviation Authority (FAA) monitors the performance of screeners by periodically testing them with FAA special agents posing as passengers.

Two important reasons explain why screeners fail: rapidscreener turnover and inadequate attention to human factors.
From May 1998 to April 1999, screener turnover averaged 126% in 19 major airports in the USA, 200% at five airports andone with a turnover of 416%.

FAA has been recommended to use threat-projection systems that place images of dangerous objects on the monitors of X-ray machines to keep scanners alert and monitor their performance and a certification program to make screening companies accountable for the training and performance of the screeners that they employ.

The threat-projection systems are useful as they monitor screener performance, and help train them to identify more diffcult objects for the future.
It is expected that FAA will deploy this technology in airports by 2003 and also more FAA security screeners will be used."


This represents my opinions only and is not advice to buy or otherwise. Do your own research!

Happy new year.

G.

A very significant distribution deal announced this morning.

http://moneyam.uk-wire.com/cgi-bin/articles/20060509070000W2373.html

Posted yesterday........ Analysis selection from the "UPS" IGE 24p

IGE price 24p

A strong rising volume last Friday

A bullish scenario last November as it went into a Golden Cross in the chart following with a BREAKOUT and a retracement, now is on the bounce aiming for higher prices

The 3D and 2D X-ray imaging devices are gaining new business for the inspection of corporate and airport security, is ready for profitability in 2007 as the total order intake is at record levels

Has signed two distribution and a licence agreement within the security sector recently and could lead later to further opportunities for the special projects group

Golden Cross Chart for IGE


Golden Cross
"To form a Golden Gross, the 50 day moving average must cross from below the 200 day MA to above the 200 day MA, whilst the 200 day MA must also be rising".

IGE 25 - 26p +1.50p

up again and doing nicely

L2 ( Level 2) is 1 v 1

Could there be a new contract to be announced?? The sp has gone up by 73.53% this morning (though I hardly dare mention it, as it will inevitably drop now!).

sp climbed again today: up 12% to finish at 11.0-12.0p, with two big Buys going through at 13p later afternoon:
16:18:52 38,194 @ 13p
16:18:58 40,000 @ 13p

Today's RNS explains the recent rise in sp:

"Of particular interest is the sale to China which is a repeat order from an
existing client, following the purchase of their first Axis-3D(R) system last
year. The equipment will be used to provide heightened security measures for
key locations at next year's Beijing Olympics; delivery is scheduled for April 2008."

etc etc

April 10th the bank of England has just announced that the bank rate is now down to 5%The cost of living Up House prices down, bank loans costs are sky high.. I have to trade shares for profits to make ends meet, one of the investments that I hold is Image Scan Holding, yesterday the share price had traded Up 0.38p or 6.95% to 5.75p. Then fell back 1.

The Board of Image Scan, specialists in the field of real-time 3D and 2D x-ray imaging for the Homeland Security; and Industrial Inspection markets, announces that further orders have been received for its Axis-3d system from China and for its MDXi-400 system from Johnson Matthey in the US.

Avoid recommendation from Growth Company Investor

http://www.growthcompany.co.uk/recommendations/1053137/image-scan.thtml

investinggarden, you told us all to avoid, then today you bought 248000 shares. Make up your mind. :))
Mind you, a few more like that and I might get my dosh back...

Picked up 50K at 1.89p after the near 250,000 shares buy at 2p yesterday. Highest size buy in months and maybe something is in the offing. Trading partner in India news can't be too far away.
Level 2 very strong at 3 v 1 with the other 3 MMs on 2.50p offer.

The below news should bring about a significant re-rating imo. News can't be too far away and someone is already loading up in the market, 248K buy yesterday at 2p and 100K buy at 2p today.

Interims last month:-

'The Company is in the process of selecting a trading partner in India, involving
several months of market research and due diligence. It is believed that this
will offer the opportunity to capitalise on the recent sales into India and
respond to the significant demand for security equipment in that territory'.

At the moment the mkt cap equates to cash in bank, so any buy out would offer significant upside to investors.

The technology needs access to strong marketing support to fully penetrate the markets. I imagine Image Scan would be of great interest to certain parties.

My fag packet valuation:

Cash 1mn
Tax Losses Equiv value 1.5mn
R&D and future market potential 5mn

Total 7.5mn or 14-15p per share...

Any comments.

'Any comments' ?

Yep, you're a ramping, pump and dump mongrel

Have a nice day

Growth in India:-

The enhanced security measures are expected to boost India's private security business to 500 billion rupees by 2012 from about 220 billion rupees currently, according to the Associated Chambers of Commerce and Industry, a lobby group.

It will also increase imports of security products from companies in U.S., Europe, Japan and South Korea into India, Assocham said.

"Our business is flourishing as people are now security conscious," said Sanjay Rhode, marketing manager at Digital Security Products, which counts Indian Oil Corp. Ltd., State Bank of India and Delhi Metro Rail Corp. among its customers.

"Earlier, security was on the back burner of companies but now they don't have any other options."

http://online.wsj.com/article/SB122874664024188039.html

India will become the first country in the world to acquire Image Scan's 3D X-Ray technology to enhance the country's security.
http://www.igovernment.in/site/India-to-have-real-time-3D-X-Ray-tech-for-security/

Possible trading partners in India:-

Digital India Security Products
http://www.digitalsindia.com/

Vantage Integrated Security Solutions
http://www.vantagesecurity.com/

Honeywell Security India
Partner of Choice
'Who will you choose to partner with to win? The security industry is changing with new technologies, the influence of IT, more sophisticated end users and interesting competition. Successful security dealers and integrators will need even closer partnerships to continue to thrive. At Honeywell Security, we are committed to being the partner that will give you the best success in your business'.
http://www.honeywell.com/sites/portal?smap=honeywell_india&page=HIIPL3&theme=T6&catID=C01CB9B3E-88B1-F66B-564E-F69D1A4C1519&id=HEC82F1F0-B207-7497-9C5E-9CBF80801557&sel=5


ADT Security
http://www.secprodonline.com/Articles/2009/06/03/India-Airport-ADT.aspx

Other security provides on the software side also targettting doing business in India:-
June 7th, 2009
http://stuff.techwhack.com/6718-kaspersky-india

Gross profit in H1 2009 was only 326k. Admin costs at circa 1.4mln per annum are just too high for the business to be viable at current sales levels, IMHO. Even the planned savings won't reduce admin costs down to anywhere near the level needed simply to reach breakeven, unless sales practically double from recent figures.

I'd suggest there may be going concern issues with full year accounts, unless there is a dramatic turnaround.

This looks like one of those stocks that appears to offer promise without ever actually delivering....

Rgds
dell

All IMHO, DYOR etc.

Listen to an interview with Louise George, CEO of Image Scan.

Webcast

Listen:Bill Mawer, CEO, Image Scan Holdings - Half yearly report

Click here