Iteris, Inc. (NYSE:ITI) Gains Strong Price Momentum
[[tagnumber 0]]Shares of Iteris, Inc. (NYSE:ITI) broke out of the narrow trading channel in just one session yesterday which formed a very promising chart pattern for the new session today. The company is still struggling to make a profit again, yet its stock could gain more on the strong price momentum that is currently building up.[[tagnumber 1]] [[tagnumber 0]][[tagnumber 3]][[tagnumber 1]] [[tagnumber 0]]ITI closed the last session with a 10.68% increase from the previous close at $2.59 for a share. The trading activity was much higher than normal, thus technical indicators on ITI chart reversed sharply upwards and will attract more buyers to the market today. The chart also promises volatility to stay high in the coming sessions.[[tagnumber 1]] [[tagnumber 0]] [[tagnumber 1]] [[tagnumber 0]]It looks like ITI currently focuses on developing its third segment which is Performance Analytics and part of which is its ClearAg precision agriculture solution that provides a database of weather, soil and agronomic information for farmers. Sales from that segment are still a small part of the company‘s total revenue but on top of that the segment posted a huge drop in sales in the second quarter.[[tagnumber 1]] [[tagnumber 0]]A few days ago, ITI announced a partnership with Geosys, Inc. for the ClearAg application. The management claims the integration with Geosys‘ Croptical monitoring application would provide farmers with more comprehensive weather content and the opportunity to track much more data. At the end of June, ITI had around $18 million in cash, y[[tagnumber 12]]et the management has not yet decided what exactly it is going to invest in the agricultural application to try to make it profitable.[[tagnumber 1]] [[tagnumber 0]] [[tagnumber 1]] [[tagnumber 0]]Important for shareholders is also that at the end of September the company‘s stockholders approved an amendment of ITI Incentive Plan according to which the number of shares issuable under the plan was increased by 1 million to 4.98 million. That means higher risk of potential dilution for ITI shareholders.[[tagnumber 1]] [[tagnumber 18]] [[tagnumber 1]]
