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Andrew T. Gillies is Director of Communications at the Center for Audit Quality, an affiliate of the American Institute of CPAs, in Washington, DC. Based in Washington since 2002, he has also worked in editorial and communications roles at the Investment Company Institute, the World Bank, Forbes, and Vault.com. His policy-themed writing has focused on aerospace and defense, energy and environment, transportation, and financial services.

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