ImageWare Systems, Inc. (OTCMKTS:IWSY) Drops Further
Yesterday’s shorter market session did not stop ImageWare Systems, Inc. (OTCMKTS:IWSY) from seeing some heated action. Sadly, the share shuffle sent the price another 6.4% down.
IWSY stock climbed high and did it quickly. The share price went up over 150% from its early May values. It is often very difficult to sustain such surges in price when they happen on next to zero news, no exciting figures in recent filings and no ongoing pump campaign. Actually the lack of any detectable stock pumps is one of the positive things about IWSY, as we have traced no email touts targeting the company.
Financially, IWSY almost manages to look good. The company is sporting a solid $2.2 million in cash and quarterly revenues approaching $1 million. However, this initial good impression is soured by the current liabilities and the net loss recorded in the past:
- $3.4 million in current liabilities
- $3.1 million in 2011 net loss
- $10.1 million in 2012 net loss
- $2.7 million in net loss for Q1 of 2013
In yesterday’s half-session IWSY moved over 900 thousand shares. If that pace remained in place for a full session, the company would have broken its Tuesday volume record, and by a considerable margin. The fact that the stock took a nose dive very early in trading on an obvious volume spike may suggest that someone is trying to get out and they’re in a bit of a hurry.
Traders have speculated whether the sell orders are not coming through from Gruber & McBaine Capital Management LLC, who disposed of a total of 570 thousand IWSY shares in mid-June, as per a Form 4 filing. Before a new Form 4 arrives in the coming days, detailing any further insider trading taking place, nothing can be said for sure. The stock saw a hugely volatile swing with a $0.85 difference between the high and the low of just two sessions, so this may scare further investors out of the stock.
Among yesterday’s more fortunate stocks who had a green day were Generex Biotechnology Corp. (OTCMKTS:GNBT) who closed 12% up, and Xumanii, Inc, (OTCMKTS:XUII) who gained 10%.
