Positive ID, Corp. (OTCMKTS:PSID) Jumps on Announcement of Government Contract
Positive ID, Corp. (OTCMKTS:PSID) seemingly hit the holy grail of its industry, a government contract for security technologies. The announcement of the news was immediately gainful, and we have to wait and see if the ticker has a potential to gain further in the days ahead, or if the news would be consumed quickly. This Monday, PSID grew by more than 26% to $0.0931, as dollar volumes revived to $960,000. 
PSID climbed since February, though it went through some days of volatility. In the new year, volumes have picked up, although the price gain looks like a very gentle slope in the longer term. The robust buying volumes are an early indicator that PSID looks like a bargain, given the company’s participation in a seven-month government contract. The contract is in the area of biological materials detection, but so far we don’t have details on the financial side of that task.
Unfortunately, PSID could not reveal the exact data for its first quarter of the new year, but the late 2013 filing showed:
- $98,000 cash
- $125,000 total current assets
- $6.28 million total current liabilities
- No revenues
- $3.3 million quarterly net loss
Sadly, PSID is buried in debt, and we still don’t know if the latest contract would be enough for the company to get ahead and move itself out of the long and costly preliminary stage. Not to mention that PSID arrives to an already well-supplied market for aerosol threats.
Investors’ forums are relatively inactive for this ticker, as in the recent past it was taken as a longer-term bet. But even with a more patient view, the delays of unrolling actual products and gaining contracts held down the rise in stock prices. In this, PSID resembles pharmaceutical companies that hope for a breakthrough and the stock price is so reliant on expectations that any delay or negative news potentially causes a crash.
Sigma Labs, Inc. (OTCMKTS:SGLB) is a cautionary story, as the 3D printing business took a piece of a $5 million grant to develop its proprietary technology. Yet the stock price movement continued to be rather volatile, with deep setbacks once the initial optimism of the news wore out. SGLB is currently staging a minor recovery, moving up from $0.13 toward $0.17.
Yet the current contract is seen as a test that will unroll the real sales of the M-BAND technology, at least as much is expected by investors’ forums. PSID is expected to run upward to $0.60.
Speaking of new technologies, the fight for a higher stock position is difficult. Liquidmetal Technologies, Inc. (OTCBB:LQMT) spent months stagnant, before it took the step toward $0.26- though now the ticker is stuck at this level. LQMT is also fighting for contracts before it could do anything about the huge holes in its financial data.
If you are waiting for fast results, in the case of PSID they may come in the short term, as the ticker holds a relatively low price. But keep in mind the potential for disappointment, as PSID is much less actively traded, obscured by the shift toward the incredibly appealing legal marijuana stocks.
