ImageWare Systems, Inc. (OTCMKTS:IWSY) Adds Another Strong Day

ImageWare Systems, Inc. (OTCMKTS:IWSY) rarely surprises with more active volumes, but after a long drift around $2 and then $1.50, IWSY is headed somewhere again. IWSY added more than 16% on Thursday, stopping at $1.70 on dollar volumes above $475,000. Investors’ forums immediately commented with the potential for a bigger move, even a buyout.

IWSY has a potentially cash-cow position, with the rising demand for identification and biometrics systems. The latest order from October is for the city of Fredericton, New Brunswick, Canada, to build a system of photo recognition, fingerprinting and signature storage. Also, IWSY is capable of offering integrated solutions to both domestic and international markets.

Still, IWSY has enough competitors, and its technologies will be having a hard battle to achieve a true breakthrough, or attract a good buyout offer. Still, the company is silent, and has not offered a PR message for a while. The only hype around IWSY is coming from the general trend in the biometrics industry, with potential uses outside security and in the area of banking and personal finance.

Now, IWSY faces the weekend, and we have to see if the bump from the past few days will keep up. IWSY was shaky in the past few days, and the double-digit climbs are still unusual. The long depression in the stock’s price comes with a long series of insider sales and option exercises, contributing to the general trend. IWSY went into uncharted heights this summer, with a too steep climb in May that tested the limits for this stock.

IWSY moves in parallel with several other promising tech tickers, which are rising almost without special boost from pumpers. Liquidmetal Technologies, Inc. (OTCBB:LQMT) is one of those stocks that has been shaky in the past months, but has stronger days once in a while. LQMT is at $0.1588 after sliding back by 4%, on lowering volumes.

Sigma Labs, Inc. (OTCMKTS:SGLB) is still stuck at 19 cents, after the strong climb on Wednesday. The stock sometimes stalls on lack of news.

If you still believe IWSY is in for a run, and could revisit older positions, it is still best to be prepared for setbacks. IWSY has shown long sliding periods, and with success still just around the corner, the stock may test the patience of investors. And while the three tickers we mentioned are better-quality than other OTC stocks, the price does not guarantee that there won’t be a painful correction.