Positive ID, Inc. (OTC:PSID) Continues to Rock on Stock Brain Emails, Possible Security Orders
Tightening airport security worldwide lifts the stock of small cap companies offering snooping technologies- sensors capable of detecting microorganisms, toxins or explosives through air samples. Positive ID, Inc. (OTC:PSID) thus added 13% to 2 cents, reviving its penny play on news that it may serve the Department of Homeland Security. 
However, the link to Homeland Security is still tentative- not yet a contract, but merely a call for offers for technologies to improve safety scanning practices. Small cap security businesses are usually wealthy due to national and international orders, so let’s see how much funds PSID has to produce and distribute its chemical snoopers: 
- $186,000 cash
- $4.8 million total current liabilities
- Zero revenues
- $2.32 million operating loss
While a deal could erase a bit of the accumulated losses, the company seems to be running on debt and delayed payments. The secondary business of PSID is medical diagnosis by breath analysis, yet teaming up with Boeing seems to be the more promising path toward getting airport contracts and selling chemical analysis reagents.
Even outside the promise of future deals, PSID has relied on a long promotional campaign to attract the attention of investors. The last installment came yesterday from Stock Brain. The whole campaign for February so far has a budget of $5,000 for nine mailings. Be warned that PSID may peter out like other picks by Stock Brain, dragging down your investment. China Logistics Group, Inc. (OTC:CHLO) shows a marked spike in activity and prices with the email from the beginning of January, but later lost more than 66% of its value on much less liquid trading days.
A similar ticker riding the airport and national security trend is Implant Sciences, Corp. (OTC:IMSC). This ticker was rising several days ago without a visible promotional effort. The main source of success for IMSC is the notorious Transport Security Administration (TSA) which constantly seeks to tighten its screening capabilities on explosives carried on a person. The company has sales to all regions, including India, the Middle East and recently Russia. As is the case with security companies, large state-sponsored contracts could make or break their business. In the case of IMSC, despite the lack of pump emails, the stock is going strong on the general uplift in security spending.
IMSC is also heavily in debt, and it is important to do your own research to estimate if the security industry is the next big thing in small cap circles. Be warned that pumps may send stock price way ahead of real orders.
