ImageWare Systems, Inc. (OTCMKTS:IWSY) Hits a Wall
Despite its relatively high share price compared to most of its market tier peers, ImageWare Systems, Inc. (OTCMKTS:IWSY) seems to have gained a foothold among the most heavily traded OTC stocks of the recent weeks. Yesterday the price took another step back to close the day at $2.39 or almost 5% down, generating dollar volume of over 1 million.
The company is a biometric solutions provider, offering a range of products that include cloud support. Over the last two months IWSY enjoyed an explosive run that saw the share price increase more than twice, at first steadily, then in leaps and bounds, to reach its July 1 high of $2.67 per share. This level seems to have proven to be a barrier, as the price dropped by a considerable $0.50 in the next two sessions.
July has been a volatile roller coaster ride for the price. The first close of the month may prove to be a resistance level that the stock attempted to breach again after the first drop. The second run saw IWSY claw its way a little lower, then reverse its movement again, dropping by nearly $0.20 in the last two sessions.
Investors may be hoping for that one PR announcement of a big client deal that will have the power to send IWSY above this perceived resistance level and lead to an increase of revenues. That in turn may finally send the company into logging profit in its reports. Despite the very respectable amount of cash on hand IWSY has, its quarterly revenues approaching a million and the relatively low level of convertible debt, the company failed to record profit in Q1 of this year. Over the previous two years IWSY logged total net loss of $13 million.
Other stocks that retreated in yesterday’s market include Sigma Labs, Inc. (OTCMKTS:SGLB) who, after a bullish run, dipped on a volume spike around noon and did not manage to recover by the bell. Northumberland Resources, Inc. (OTCMKTS:NHUR) have also seemingly switched to free fall mode, with the stock closing red again and having lost nearly 60% in three sessions.
