ImageWare Systems, Inc. (OTCMKTS:IWSY) Refuses to Stop Climb
After a frenzied chart climb in mid-June followed by a brief pullback, ImageWare Systems, Inc. (OTCMKTS:IWSY) returned to storming the charts. The stock closed 14% up on Friday, returning to daily volumes of above 1 million shares.
The company is a provider of biometric products and solutions. In a little under two months, the stock price of IWSY, along with its market cap, has more than doubled. Perhaps the most important thing that should be mentioned in relation to IWSY‘s chart climb is that the company is not targeted by paid stock pumpers and there is no ongoing pump campaign advertising IWSY.
The company has been curiously quiet on the press release front, considering its movement up in leaps and bounds. The previous significant press announcement from IWSY over the last two months came on May 10, a couple of days before the first double-digit jump. The only other piece of press information released from the company since then was Thursday’s information that the company was interviewed for a website concerned with security stocks.
The company had the following figures to show as of its last quarterly report for the period ended March 2013:
- $2.2 million in cash
- $3.4 million in current liabilities
- $856 thousand in Q1 revenues
- $2.7 million in Q1 net loss
On a year-over-year basis, those numbers reflect a 50% shrink in cash and a minor shrink in revenue, as well as an increase in loss from operations. The company ended both 2011 and 2012 recording a net loss of respectively $3.1 and $10.1 million. IWSY announced that this March they entered into a line of credit agreement. The agreement allows the borrowing of $2.5 million and the owed amounts can be converted into IWSY common shares at a price of $0.95 per share – a level far below the current prices of the stock.
Two other stocks that attracted significant investor attention on Friday were Xumanii, Inc. (OTCMKTS:XUII) who inched higher once again, and Nanotech Entertainment, Inc. (OTCMKTS:NTEK) who enjoyed a bigger percentile climb, closing 33% in the green on heavy volume.
The climb of over 100% may have taken place a bit too quickly and IWSY looks like it may have a hard time sustaining the uptrend, or possibly even keeping it level where it is now. Traders are advised to be extra careful and do their own due diligence, as chasing stocks is hardly ever a good idea.
