So many investors focus on penny stocks as a high-risk, high-reward market. Most will look for 3, 4, or 5 letters to simply trade without knowing about the company itself. However, there are several instances that these small companies have become massive industry leaders. At the very least, there are penny stocks that have become billion-dollar companies after solidifying proven business models.

Take a look at 8 Penny Stocks That Became Billion Dollar Companies. You’ll see that these were more than just “penny stocks to buy“. They used the public markets to fund growth and in-turn, a successful business model.

Needless to say, some industries also lend a hand to things like this. Niche-specific sectors like defense or weapons detection can be similar to biotech. People typically look for early opportunities during development phases. This makes certain sectors exciting to watch.

Weapons Detection Penny Stocks To Watch

Liberty Defense Holdings (SCAN.V) (LDDFF)

We’ve mentioned this penny stock in the past. The company’s product, HEXWAVE, identifies concealed metallic and non-metallic threats in public spaces. So far the company has secured an exclusive license from Massachusetts Institute of Technology (MIT). It also has a technology transfer agreement in place for patents involved with active 3D radar imaging technology. These are then packaged into the HEXWAVE product.

This is an early-stage company that is currently in pre-commercializing but don’t let that fool you. In order for a company like Liberty Defense Holdings (SCAN Stock Report) (LDDFF) to have opportunities, you’re about to read, there is likely a reason. Case in point: October 2’s news. Liberty Defense to Test HEXWAVE at Toronto Pearson Airport.

This isn’t just a regular airport; it’s Canada’s largest airport. And this “little company” just secured it as a beta test site for its product. It isn’t going to replace the current security in place right now at the terminal level. However, it will address a wider area that includes every square foot between the curb and the gate.

The Proving Ground For This Penny Stock

“HEXWAVE caught my attention with its capability to detect both metallic and non-metallic objects and the flexibility for its deployment across the airport. We work with our partners to evaluate their products and evaluate how they can complement our operational reality. We’re excited to work with Liberty Defense to see how we can make HEXWAVE a success at Toronto Pearson,” said Dwayne Macintosh, Director of Corporate Safety and Security for the Greater Toronto Airports Authority.

Besides working with the largest airport in all of Canada, Liberty has been laying the groundwork with other testing partners. These include FC Bayern Munich’s Allianz Arena in Germany, as well as the Rogers Arena in Vancouver, British Columbia.

Liberty is working with Maryland Stadium Authority’s Camden Yards Complex. The Virginia Division of Capitol Police and Sleiman shopping centers also came on board. Additionally, the Metro Toronto Convention Centre has undertaken HEXWAVE beta testing.

Other Weapons Detection Penny Stocks

If you do a search for “weapons detection stocks,” there will be only a handful of companies that come back as pure-plays. Companies such as Lockheed Martin (LMT Stock Report) focus on a number of different areas of defense. So it would be related but not a company offering direct exposure. So, when it comes to a pure-play penny stock, there are a handful of companies.

Patriot One Technologies (PAT.V) (PTOTF)

This is another one of the weapons detection tech stocks in the arena. Patriot One Technologies (PAT.V Stock Report) (PTOTF) has developed the PATSCAN™ Threat Detection Platform. Most recently the company was selected as the security technology partner for Bleutech Park Las Vegas. This is a $7.5 billion “smart city” in Las Vegas being constructed.

“Patriot One is honored to be selected as the security technology partner for Bleutech Park, a $7.5b Las Vegas Mini-City project that will be the World’s First Net-Zero, Smart, Connected and Safe City.” Martin Cronin, CEO & President of Patriot One Technologies

Other weapons detection & defense stocks include Raytheon (RTN Stock Report), L3 Harris Technologies (LHX Stock Report), ShotSpotter Inc. (SSTI Stock Report) and Kratos Defense & Security Solutions (KTOS Stock Report). These are much more expensive stocks to buy. They are also lacking when it comes to direct exposure to weapons detection technology. Something to keep in mind as smaller companies are being recognized by the likes of the largest airport in Canada or a city like Las Vegas.

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