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What: Shares of auto parts maker Gentex
So what: Automotive safety regulators are proposing a rule requiring backup cameras on all new vehicles by 2014 to prevent drivers from backing over pedestrians. There's no word on if regulators are also considering requiring loud reverse horns like we hear from heavy machinery.
Now what: On a serious note, an average of 292 people die from back-over accidents every year. People may be a little shocked by the estimated $2.7 billion price tag for the cameras, but if the rule goes through it would not doubt be a boon for Gentex. However, the high price tag gives me the feeling there could be a fight over this, and I would like to wait for an official rule before trading on this news.
Interested in more info on Gentex? Add it to your watchlist.
Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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