Wednesday, January 11, 2006

Smartcard Small Cap

WASHINGTON, D.C. - The notion that small-caps are riskier than large-caps flows from common sense. Small companies usually have fewer customers and lines of business. Their stocks aren't as widely held, thus intensifying the effects if a big shareholder pulls the plug.

But what if one of your customers is the recession-resistant mother of all spenders? The one that can print money? Fargo Electronics is strong in a niche business that the U.S. federal government demands: printers that personalize identification cards with text and images.

"The federal government isn't generally a big risk taker, so they're looking for products that are tried and true," explains Kathleen Phillips, Fargo's vice president for sales and marketing. "We have those products."

Full story at Forbes.com