The TSA Trade (ASEI)

Thanksgiving is upon us and everyone is complaining about the pat downs they might potentially be receiving from the TSA. Well to that, I say don't cry about it, profit from it.

American Science & Engineering, Inc. (NASDAQ: ASEI) makes X-ray inspection and other detection solutions primarily for homeland security markets around the world.

Shares don't look overvalued, trading at 17 times 2011 estimates. It has a decent dividend yield, at 1.5%, and has around $18 per share in cash on its books, with negligible debt.

It has a decent return on equity, which is one of the most important metrics to look at when considering an investment. ASEI's ROE is just over 18%. It's growing earnings 37% year over year.

Disclosure: no position