In a time of war and political criticism of troop protection (see this successful 2006 campaign ad), there is a breakthrough that is sure to become standard in every piece of body armor used in the military, not to mention in civilian life.

An amazing new use of nanotechnology will soon be deployed on the battlefield to save lives. It should also have police and security applications, not to mention a variety of consumer possibilities.

ScienCentral News reports that two research teams — one at the University of Delaware, the other at the U.S. Army Research Lab — have perfected this unique material.

It combines nanoparticles and a special liquid. Under normal conditions, it’s flexible and soft. It’s lightweight and basically unnoticeable when worn.

However, under sudden impact it momentarily becomes solid. This happens almost instantly, about a millisecond following impact.

Not only that, but the scientists have figured out how to impregnate materials such as Kevlar with it, vastly improving the protective properties. Currently, Kevlar is reasonably effective against bullets but useless against something such as a knife — or shrapnel from a roadside bomb.

The new material gives resistance to projectiles and defends against sharp weapons. The key benefit of the special liquid is that it spreads the force over a much wider area, thereby dispersing it.

It only adds 20% to the weight of a garment, thereby addressing the critical need to have body armor that’s both effective and lightweight.

I foresee this technology having multiple civilian applications, including a possible additional layer of protection during car crashes. It may also be used to strengthen tires, perhaps helping to prevent blowouts.

Especially exciting is the possibility of finally having suitable bodily protection for motorcycle riders and bicyclists who are presently at the mercy of the least competent car driver on the road.

A company named Armor Holdings (formerly AH: NYSE), a subsidiary of BAE Systems (LSE: BA.L), has acquired rights to the technology. It will release the first products sometime this year. Unfortunately, BAE is too large a company for our investment purposes. But in development of technology like this, there are almost always smaller companies that make good money off of it.

To your profitable future,
Jonathan Kolber
September 4, 2007

P.S.: I have some suspicions of which small companies might benefit from this. And once it becomes a little clearer, my Emerging Capital Report readers will get the first word.

Penny Stock Military Hardware was originally featured in the Penny Sleuth.