Delivering News That Matters

Pandora’s Stox

Today I am interested in the stickiness of well-branded police states, fruits of neo-con labours, agendas about agendas and ego-problems.

In a Disaster Economy, Protests, Riots and Rallys = Job Creation

Recently, the New York Times reported that private security firms are quadrupling in business since the OWS protests started. Also, the city council of Foley, Minnesota voted on October 18th to switch to private security firm to provide 24-hour service to the city, the first time in American history policing has gone private.

In a world without Hitler, without PolPot, Saddam and Quaddaffi -in a world filled with zombies, subtle nosejobs and online dating services, the savvy modern western woman is putting security first. The discerning fashionista of today craves more than designer clothes designed by anti-Semites and gansta rap, bodyguards are hottt!

Not just for the high profile bankster, royal or celebrity anymore, private security operations are becoming increasingly ubiquitous in the most mundane scenarios, providing things like venue threat assessments for churches, fluorescent wristbands for family gatherings and well-spoken, undercover ninjas for teenage birthday parties, formals, corporate events, trips to the zoo.

With state of the art GPS incident reporting, no cold shoulder, no giving of the evil eye is too non-urgent to go unreported. Imagine every important event in your life happening against a backdrop of the whirling blades of helicopters, ear-pieces, mirror sunglasses, and citizen arrests.

Just imagine, never being too old to play Cowboys and Indians or Mission Impossbile!

Now imagine making lots of money investing in the largest security firm in the world, second largest private sector employer in the world behind Walmart, and keeper of the flame of the western ego, G4S.

G4S plc (formerly Group 4 Securicor) is a FTSE 100 British global security company with operations in over 125 countries. It is trading at 241.00, up 3.17% from yesterday. Their growth is due to its massive appetite for merger and acquisition of other top companies, especially in the last decade.
On October 17th 2011, G4S announced its planned purchase of Danish Facilities Management Group, ISS A/S in a deal worth £5.2 billion. This doubles G4S revenue to £16 billion and expands its services to catering and cleaning, making them also the world’s largest facilities management company. As activities of the two companies overlap in 40 countries, the short term goal is an operations cost savings of about £100 million by 2014. This is G4S’s first purchase of a company unrelated to security, paramilitary training or corrections and top investors are having a really bad time of it.
They vote on the acquisition on November 2. If they acquire ISS (which they will), it means that it’s a great time to short.
Activist investors have been vocal about wanting to nix the deal, causing a temporary rebound in the stock after it fell 22% earlier this week when the bid was announced.
But judging by how aggressive and possessive G4S has been in the past, they won’t let this go, not unlike like a jealous stalker boyfriend. I suggest you buy after you short, because the company is expected to recover debts and stabilize in 2012.
So in short, short, go long, short again, write puts, go long, then short calls, and then go long again. Please make sure your stops are in place.
You too can be part of G4S’s pack-man-like pursuit of global police force status, because in their own words “In more ways than you might realise, G4S is securing your world.”
Most notably, G4S owns the corrections company Wakenhut and Armor Group which provides consultancy as well as deming operations. G4S provides full lifecycle asset security for oil and gas, intrusion alarm monitoring, it drives around train stations in the UK picking up illegal immigrants in mobile detention facilities, it does CCTV surveillance, photo-tagging, security for railroad systems, major airports, government buildings, emerging economies and desert rubble heaps.
Just one more thing before I go and apply for a job at G4S for some 4th generation warfare action: remember to sell if things get too weird, and by weird I mean peaceful.

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