ImageWare Systems, Inc. (OTCMKTS:IWSY) Still in the Spotlight
For several days in a row ImageWare Systems, Inc. (OTCMKTS:IWSY) managed to stay in the limelight of the most heavily traded OTC stocks. After the initial increase in daily share volumes that took place in mid-June the stock cooled down only briefly, before returning to volumes of nearly 1 million shares.
In two short months, starting in early May, IWSY share price has more than doubled. The price action on returning heavy volume in mid and late June sent IWSY up to $2.67 per share, after it had been sitting at a much humbler $1.00 per share in May. The one decidedly positive thing about the company is the lack of any detectable stock pump campaigns or promoters targeting IWSY.
The cloud solutions provided by the company generate sizable revenues but the bottom line is not too exciting. Here is what ISWY reported as of the last quarter ending 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
While the company’s gross profit is considerable even after costs have been deducted, expenses turn the near-$1 million revenue into multiple millions of net loss. Cash has gone down 50% year-over-year as well. IWSY logged a net loss of $10 million for 2012.
The previous two sessions saw IWSY‘s explosive climb cut short by what very much looked a like considerable selloff, with the price slipping by $0.50 in two sessions on record volume. It seems IWSY is still not done as yesterday it opened with a $0.20 gap up from the previous close and proceeded to close the day just a notch higher, for a gain of 10%. The company has not come up with any explosive press releases and what older news that came from its headquarters were not particularly exciting either. Investor interest seems to still keep IWSY afloat but with a price of over $2.00, an OTC stock has a lot to lose.
Other expensive Friday pennies included Affymax, Inc. (OTCMKTS:AFFY) who managed to return above $1.00 in Friday’s session. Blue Earth, Inc. (OTCMKTS:BBLU), in an attempt to retrace its mid-June highs, closed 8% up and finished the week at $3.15 per share.
