ImageWare Systems, Inc. (OTCMKTS:IWSY) Still Going Strong

ImageWare Systems, Inc. (OTCMKTS:IWSY) is not giving up yet, reaching $2.28 on solid buying volumes. The ticker only added a few percents to its price, but buying volumes exceeded 1.7 million dollars. The company has been silent for quite a while, rising despite the lack of a paid promotion or press releases- until Thursday.

And even that press release is not quite filled with material information about the company’s business. The company took part in a series of interviews with a magazine specializing in data security technologies, SecurityStockWatch.com. But the mentions do not translate into new orders or products. So far, they just serve to remind investors of IWSY and its amazing climb.

Financially, IWSY is getting a bit behind, with a disappointing 10-Q form showing:

• Cash: $2.2 million (Q1 2013) vs $5.3 million (Q3 2012)

• Current assets: $3.2 million (Q1 2013) vs $6.6 million (Q3 2012)

• Current liabilities: $3.4 million (Q1 2013) vs $3.8 million (Q3 2012)

• Quarterly revenue: $856 thousand (Q1 2013) vs $938 thousand (Q3 2012)

• Quarterly net loss: $2.7 million (Q1 2013) vs $2.7 million (Q3 2012)

But this is nothing compared to the three-year highs for the company, which seem quite precarious due to the steep climb in the past two months. Among investors, message board comments reveal a similar sentiment- that the heights are not sustainable and a turning of the tides is much expected. IWSY opened the day on a high note, rising immediately, but we are yet to see how it ends before the weekend.

We’ve seen tickers that held up relatively well despite the lack of promotions. So far, IWSY relies on internet noise, comments and expectations, and it holds up relatively well. But this was also the case of Lot 78, Inc. (OTCMKTS:LOTED), which did not fall off immediately after the end of the promotions, but only crashed after a series of tentative drops.

A less fortunate technological company, iTalk, Inc. (OTCMKTS:TALK) is right now going through its correction, sliding from $2.10 in the middle of May to 52 cents in June.

The new month will probably arrive with a new selection of pumps, and IWSY is a very likely candidate to be mentioned by promoters. Still, the company is a bit overhyped even without emails, so it is best to stay away unless you are able to afford the corrections.