ImageWare Systems, Inc. (OTCMKTS:IWSY) Inches Up Again

ImageWare Systems, Inc. (OTCMKTS:IWSY) does not linger long in one direction. This time, the ticker broke the three-day fall, adding more than 7% to stand at $2.37. The ticker reacted positively, adding to the early trade gains on Monday, after IWSY announced the launch of its mobile identity management platform. IWSY0730.png

While we have not intercepted emails from major pumpers, IWSY received mentions in lesser newsletters and blogs. OTC Magic mentioned the stock, and Wall Street Daily included it among the hot technological trends for 2013. The preview of Louis Basenese gives this stock a sense of higher legitimacy, and indeed the technological idea is sound.LQMT0730.png

But all that attention means the recent climb of IWSY may not be a natural event, and therefore may not be sustainable. Fundamentally, this is the financial standing for IWSY:

  • $5.5 million cash
  • $6.2 million total current assets
  • $4.4 million total current liabilities
  • $122 thousand revenues
  • $3.4 million net loss

So far, IWSY has yet to prove itself as the gatekeeper of biometric security in mobile devices. IWSY will also need to bridge the giant losses. But with several websites and newsletters floating around the internet, investors may still stumble upon IWSY and cause another small climbing trend.

Technological wonders abound among penny stock companies. One recent climber is Sigma Labs, Inc. (OTCMKTS:SGLB), which rides the hype of 3D printing. While the printers may turn out to be a wonder, this has little to do with the stock’s short-term movements. SGLB spiked strongly to 11 cents, but in the past days has been sliding on heavy selling to stand at around 6 cents.

Another hot tech company, Liquidmetal Technologies, Inc. (OTCMKTS:LQMT) was rising fast as it suggested it may hypothetically take part in the making of an Apple, Inc. wrist watch. But on Monday, the ticker corrected by a further 6% to stand at 16 cents.

IWSY is waiting to see if its platform will be accepted well enough, so that secure transactions and operations could be performed via smartphones, with the extra safety of biometric parameters. Before this happens, be aware that IWSY holds a similar risk to other trendy stock selections and avoid investing unless you can also afford the corrections.

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