From a page I found:
Bonuses found when you blow up installations or the red suited men:
K Smart bomb
B High power grenades
L Longer range bullet
S A Shorter shot
F Faster bullet rate of fire.
Interesting. "A shorter shot" doesn't make any sense though. For one thing, assuming "shorter" means a shorter range, that would not be a powerup as "POW" would indicate, and secondly, in reality, it doesn't do anything to your shot. The range and type of shot you have stays the same after picking up the "S POW", as it was before.
"F" is not a faster bullet rate of fire either. It is a different type of bullet; the rate of fire remains the same, which is a maximum of 3 shots in the air at a time, whether you have the default grey bullets or the upgraded (by picking up the "F POW") red bullets.
Even though the rate of fire is the same with the red bullets as it is with the grey bullets, the red bullets are better than the grey bullets in that they can pass over/through obstacles (you can shoot someone standing behind a rock for instance), can blow up certain things that normally a grenade would need to be used for, and they keep on going after killing an enemy, so if you have multiple enemies ahead of you in single file, one shot will kill them all.