Why Trump Could Affect Vicon Industries, Inc. (NYSEMKT:VII) Share Price?


You probably already know that Vicon Industries, Inc. (NYSEMKT: VII) makes money from selling video management systems for use in surveillance, security and communications. As such, the company serves the law enforcement market and that should tell you something about how civil unrest related to the demand for the company’s products.

The recent shootings in the U.S. that resulted in deaths of civilians and officers lifted many law enforcement stocks with Vicon Industries, Inc. (NYSEMKT: VII) among them. Investors know that when such incidents happen, police departments tend to increase their purchases for surveillance systems to ensure improved safety of officers. At the same time, spending on evidence recording tools such as the cameras that Vicon sells also tends to increase.

The shootings in Dallas and other parts of the U.S. in the past week are likely to drive up spending on security and surveillance systems by law enforcement departments domestically and internationally. Vicon Industries, Inc. (NYSEMKT: VII) stands to benefit from an uptick in law enforcement department spending.

Demonstrations at party convention

But closer home, two major political events will be taking place in the coming weeks. The Republican Party is having its national convention in Cleveland between July 18 and July 21. Democrats will have their national convention in Philadelphia between July 25 and July 28.

Hospitals and police departments in the areas where these party events will take place are already on high alert over potential violent demonstrations. In preparation for the coming party conventions, police departments are likely to increase their uptake of security surveillance and communication systems such as those sold by Vicon. Demand for these systems could even be higher considering the recent fatal shootings that claimed the lives of five officers and wounded several others.

Higher demand for surveillance, security and communications systems by police departments should mean more business for Vicon Industries, Inc. (NYSEMKT:VII).

How did Vicon Industries, Inc. (NYSEMKT: VII) fair in the recent quarter?

Vicon Industries, Inc. (NYSEMKT: VII) reported its F2Q2016 on May 19 where it reported a 22% decline in revenue to $8 million compared to the same period in the prior year. The company logged EPS loss of $0.82 in the quarter, wider than EPS loss of $0.19 a year earlier.


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