Countycomm has a dry button compass with a little nylon lanyard the were selling for $1. It seems reasonably functional to me. It's not on their site any more, but it's included in their survival starter kit:

http://www.countycomm.com/justincase.htm

The one in Doug's kit looks a lot nicer but more expensive. I'm not sure why Doug went for that. I guess he has his reasons.