Image Ware Systems, Inc. (OTCMKTS:IWSY) Aims to Repeat Record Price at $1.70

After a long weekend, Image Ware Systems, Inc. (OTCMKTS:IWSY) is another ticker poised on a high peak, with the potential to continue a steep rising trend or perhaps first go through a correction on profit-taking. IWSY managed to hold on well without a visible promotion, and also continue to grow rapidly. 

The first attempt at a more active growth started in March, when a report praised the technology of IWSY to provide biometric capabilities to mobile devices. Otherwise, IWSY is in the business of image technology since the ’80s, but switched focus to biometrics in 1999. The stock has been up and down on a relatively wide range, with some sharp corrections, moving in a range between 50 cents and $1.70 since 2011. Currently, IWSY is near its all-time high.

Along with a solid history, in the middle of May IWSY showed financial results, unusual among penny stocks:

• $856,000 total revenue

• $2.7 million quarterly loss

• $4.2 million cash

• $8.7 million total assets

• $6.3 million total liabilities

For 2012, there was a drop of revenues from $5.4 million in 2011 to just $3.9 million. Also, the operating loss is double the usual range. In earlier years, the company has corrected significantly after the first quarter results, so the current peak, achieved on robust volumes since the start of the year, starts to look unsustainable.

It is possible such a steep climb could attract paid promoters to make at least a mention of IWSY. The case of iTalk, Inc. (OTCBB:TALK) is similar, a relatively stable company, with a high stock price that got boosted further with a paid promotion. TALK reached a height above $2, but has been sliding in the past two weeks.

While OTC BB companies offer a more stable outlook and rarely disappear due to low volumes, it is still best to do your own research and stay away, unless you could afford seeing IWSY drop from its current heights.