Will Imageware Systems Inc. (OTCMKTS:IWSY) Recover?
Imageware Systems Inc. (OTCMKTS:IWSY) lost another 9.91% of its market value yesterday, but has already managed to recover some ground in today’s market session. But will it be able to keep up the pace?
Unfortunately, there is no simple answer to that question. However, there are some factors that seem to indicate that even if it manages to bounce, IWSY‘s green run will be short lived.
One of those is the sheer unimpressiveness of the figures in the company’s latest financial report:
- Cash – $4.9 million
- Current Liabilities – $2.5 million
- Revenues for Q3, 2015 – $1.1 million
- Net Loss for Q3, 2015 – $1.8 million
While not exactly horrifying, these numbers aren’t exactly inspiring either. And a company really needs to inspire investors in order to retain a market cap as high as $100 MILLION.
This is the main reason why IWSY‘s descent to the bottom of the charts is not surprising. It’s not that it is necessarily a bad company. Far from it – indeed, it currently has more going for it than most of its competitors for the spotlight on the OTC Markets will ever achieve. However, a market cap this high is just unrealistic for a company that is obviously still struggling to make ends meet.
It is only natural that the market would correct that state of developments, and investors should be on the lookout for such correction.