ImageWare Systems, Inc. (OTCMKTS:IWSY) Climbing The Charts Again
ImageWare Systems, Inc. (OTCMKTS:IWSY) managed to add 15.38% to its market value in the few short hours of trading this Black Friday.
Long story short – it looks like the ticker was bashed, it crashed, and now it is on the way to recovery.
A quick check reveals that the company’s latest crash, dated Nov. 25, was likely caused by a horrible review of the company published on a popular site. Investors were quick to recoil from the stock, in spite of the fact that the very first points the author made reveal that the analysis is heavily biased. And if the way that the opening statements in the attacked IWSY wasn’t indicative enough, the disclaimer under its headline clearly stated that the author was short on the stock.
We won’t bother telling you why it isn’t a good idea to trust a shorter’s advice completely.
Truth be told, the article did contain some due diligence that could be of use to investors, the way things were presented painted the company in an overly an overly negative way. Yes, IWSY‘s financial standing isn’t really enviable with its latest 10-Q showing figures such as:
- Cash – $488 thousand
- Current liabilities – $3.4 million
- Quarterly revenues – $919 thousand in
- Net loss – $2.2 million
However is the company threatened by bankruptcy, as the shorter claimed? Let’s face it, there are a ton of companies on the OTC Markets with financials much worse than IWSY‘s that haven’t even thought of filing for bankruptcy. The company just acquired more funding for its operations, in the form of an increase of its line of credit by $2 million.
True, CEO Jim Miller stated that the negotiations that are currently underway with its business partners could take some time. However, thanks to its funding IWSY has the chance to wait that period out without drowning investor value in dilution or toxic funding – which is more than many popular OTC Markets companies can brag.
In conclusion – IWSY‘s current state is certainly not enviable, but it may not be as bad as it was made out to appear. Its latest crash was forced, which is probably why the stock is now on the way to regaining its previous high.
Whether or not the company deserves a market cap of $196 million in the first place is another question entirely.