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September 11, 2001 was a defining moment in the history of our country. Prior to this historical date the Department of Homeland Security was not even created and airport security was just like any other industry. Investors have capitalized on the recent surge in this sector. As most investors do, they go for the bigger companies and bigger name stocks when investing. As a result there are many micro-cap stocks that get overlooked.

Micro-cap stocks sell for $5 or less per share. While you most likely will not become the next Warren Buffet by investing solely in micro-caps you can and should add them to your portfolio. Just as you will not become filthy rich with micro-caps, you will most likely not go broke either. Because of the minimal selling price there is so much less risk. Whether you are looking to improve your existing portfolio or you are just getting into investing, and you do not have a lot of money to spend, this level of stocks can be an excellent investment.

Some of the companies that exist in the homeland security sector are relatively new, which makes researching them a bit more difficult than a company such as GE. If you do spend the time you can find some excellent stocks.

When looking for a company to invest in you should consider things such as management, what the current hot products in the industry are, and some evidence of stability. I will share some companies that I feel meet these criteria. By no means should these examples be taken as a recommendation. This is just a guideline of what to look for in a possible investment. If you decide to invest in any of these companies it should be because you researched them and found them to be a good investment for your portfolio.

' Global ePoint, Inc.- symbol (GEPT)- they develop and manufacture industrial and commercial computer systems as well as digital audio and video surveillance. The company is made up of three divisions: Aviation, Contract Manufacturing, and Digital Technology. Some of Global's biggest clients are: Citibank, FedEx, GE Interlogix, Universal Studios, and American Airlines. Global has been very active in the news in recent months as well:

o October 28, 2005- Global ePoint's aviation division is awarded $750,000 in additional contracts to be delivered during the fourth quarter.

o November 3, 2005- Global wins the Ukiah, CA Police Department contract.

o November 7, 2005- Global receives orders for $1.2 million of Image Processing Equipment for X-ray scanning equipment.

Global's management is proven as well. Their CEO, Toresa Lou, was CEO of McDigit Company prior to being named the CEO of Global ePoint. She took McDigit from $0 in annual sales to over $400 million annually. Their stock price ranged from a 52 week low of $2.00 per share up to a 52 week high of $8.00 per share.

' Sense Holdings, Inc.- symbol (SEHO)- Their primary business is the explosive detection, human authentication and identification, as well as time and attendance systems. Sense Holdings has been in business since July of 1998.

o They have recently been awarded contracts from two Fortune 100 companies for deployment of biometric solutions.

o Sense Holdings was given exclusive sales and representation rights to a U.S. granted patent. The patent is for the use of biometric technology to access and operate any motor vehicle. The biometrics included in the patent are: fingerprinting, voice, facial, and iris recognition to be used in cars, boats, plans, and trains.

The co-founder of the company is still involved and now the CEO and President of the company. The five people highlighted as the leaders of Sense Holdings, Inc. all have successful careers prior to founding or joining Sense Holdings. Their stock is a bit different than Global. Their 52 week low was $.14 per share and their high was $.42. Such low prices might be enough to scare off some investors.

' Sniffex, Inc.-symbol (SNFX)- Founded in October of 2004. They have only one product, which is a device that will detect explosive material up to 100 feet away. It can even detect explosives through metal boxes or concrete walls. There are variables that would determine its ability, such as weather conditions and the amount of explosive used. This is their only product.
o Paul Johnson is their CEO. He has lead over seven companies in his career. Although all of them, prior to Sniffex, Inc., were more web-based technology companies.

If I were thinking of investing any of the three companies I have mentioned so far I would be most skeptical about Sniffex. They are the newest of the three companies. They have a leader that is new to the industry, and they have only one product, albeit a very important product. Their current stock price, as I write this, is $1.65 a share. The 52 week low was $.05 per share with a high of $6.00 per share.

While doing research for this article I came across many companies. There are dozens of companies in the Homeland Security sector. It is an important industry for obvious reasons. I read some 'experts' views on some companies where they give recommendations on which companies you should and should not invest in.

One of these recommendations was for a company that currently had no products on the market. They were awaiting numerous patent approvals. The recommendation went on to break down what would happen if the patents were approved. As I was reading it I thought to myself, 'This guy must own stock in this company.' Could this stock make you a lot of money if the patents are approved, of course. But, I think I have shown in this article that there are other companies that offer similar opportunity for return on your investment for much less risk. If you are researching this sector I think you have the chance to make some solid investments. Just use good judgment and look for the rights indicators for success.