10 Next TAIPAN launch opportunity and gave us what you’ve seen
since September. Huge gains.
Once CPHD is healthily into the US$13 range (which it’s already peeked into), I’d look for a
possible price consolidation. After the weak
hands take their profits, CPHD should resume its
climb. n        If the economic recovery is
to be sustained in 2004, one of
the key elements will be a
return to prosperity by the tech-
nology sector. Just remember
how much it contributed to the
last economic expansion. And
here’s the good news:
“Technology is firmly on the
comeback trail.”  That’s accord-
ing to Phil Bond,Undersecretary
for Technology at the US Commerce Department.        Harris Miller, head of the Information Technology
Association of America, adds, “Tech is back…   not
back to the levels of the bubble, but clearly tech
spending is coming back in a meaningful way.” 
The evidence is there. Global semiconductor
sales last October grew at the fastest pace since
1990. We’ve all got a “Big Brother”
these days Say “technology”  to some folks and they think about gadgets, or chips that make computers run
faster and better. Others think about prying eyes
interfering in their business. Sure, it can be invasive
sometimes. You’re never far from being caught on
video, your financial accounts are constantly subject
to scrutiny, and credit checks pick up any minor
indiscretion. You can blame technology for that!        But many companies are making cutting-edge
technologies aimed at protecting people’s safety
and privacy, as well as providing vital security sys-
tems and anti-fraud devices. And in an era of
heightened alerts and determination to keep terror-
ists out of America’s backyard, it’s more important
than ever to have a strong, reliable system of ID
recognition and verification. Fargo Electronics Inc. (FRGO:NASDAQ) could be one of the most impor- tant tech companies in the field. A small-cap company making
a big world more secure With a market cap of US$161 million, Fargo is one of those small-cap growth companies set to
help drive the next economic expansion. In October
2003, Fargo ranked 51st in the Forbes “Hot Shots:
200 Up and Coming Companies”  list because of its
growing presence in the personal ID security field.        There’s a good chance you use one of Fargo’s
products, because its technology is already used in
millions of personal identification cards. The appli-
cations are endless… National ID cards
Driver’s licenses
Government/student ID cards
Swipe card systems for office buildings and hotel rooms Membership cards
Transit/parking passes
Retail loyalty/bonus cards As you can imagine, this gives Fargo a truly global presence. The company has sold over 60,000
systems in more than 80 countries. And in an era of
constant terror alerts, where increased ID security is
paramount to national safety, I believe there’s plen-
ty of room for Fargo to expand its market share. In
particular, Fargo’s microchip ID technology will be
used to equip China’s 1.3 billion citizens with
national ID cards.        Fargo’s sales are, in fact, already rising. The
company recorded quarter-on-quarter growth in
seven of the last eight quarters. Over the last four
fiscal years, sales have increased steadily, from
US$54.9 million in 1999 to US$66 million in 2002.
From January through September 2003, sales rose
a further 3% to US$49,030,000. That equates to
US$5.30 per share. Net income from January through September The fight to protect America: How you can profit from the rush for enhanced ID security Martin Denholm