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Image Protect Inc (OTCMKTS:IMTL) Is A Top Growth Story

Image Protect Inc (OTCMKTS:IMTL) Is A Top Growth Story
Written by
Jarrod Wesson
Published on
September 14, 2017
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Did you see the sharp price jump recently of Image Protect Inc (OTCMKTS:IMTL)?The share price went from $0.02 to $0.04 in only one session.Something seems to be going on since Lawrence Adams, the company CEO, noted that he had acquired 1,827,049 shares of the company. Check the volume registered on August 29, 30, 31 and September 1, 2017, which were the days when he bought the shares, and think about it for a second: 1 year chart for IMTL 1 month chart for IMTLHe was not the only one buying! In particular, more than 10 million shares changed hands on September 7, 2017. As per Finance Theory, when an insider buys shares of companies, it indicates that something good could be happening inside the firm. That's the reason that his share purchases are always studied. The fact that other people also bought at the same time is interesting.In this article, we will try to assess the most recent announcements to identify catalyst that could explain the stock price behavior and that of the CEO. We encourage readers to check the article until the end.BusinessIMTL was founded in July 1997. After more than 15 years of business operations, it executed a reverse merger agreement with Clear Art, Inc., which radically changed the business model of the company. The main product developed by IMTL is an innovative software package that monitors the global Internet to seek and collect evidences for illegally used visual contents. In plain words, it is a crawler that identifies illegal use and notes the violation to the hosting companies.We believe that there may be large demand for such a software, given the amount of intellectual property infringements that we can see everyday on the Internet. The Internet is a large space, thus the work, which should be done with a lawyer, and evaluating websites one by one is best performed by an independent algorithm pre-trained to search for such violations.Recent DevelopmentsOn August 24, 2017, the company announced an integration between Image Protect Inc. and Safe Creative; two copyright protection companies. Both of them will streamline the tracking of where registered images and illustrations are being used online. In our opinion, the idea is great, as the cost synergies will go far. Jonathan Thomas, COO of Image Protect Inc., was quoted:

"We anticipate both platforms to benefit from our aligned strategies to solve important copyright issues for our clients. This broadens our access for our monitoring services to the member photographers of Safe Creative, while creating additional revenue for the company" Source

The deals with other companies did not end there. On September 12, 2017, another partnership with Snapwire Media Inc., California tech company, was released. The new partner owns a website that connects photographers and brand managers interested in the acquisition of images. The deal is interesting, as Snapwire brings 1800 clients worldwide, such as LinkedIn, Scholastic, Google, and Hertz as well as over 330,000 photographers in 180 countries. Additionally, the company says that 15,000 new users sign up for Snapwire every month.How will IMTL help?Image Protect will monitor more than four million photos stored in the Snapwire marketplace. Additionally, the company will also help in registering photos with the US Copyright Office for online privacy purposes. Jonathan Thomas noted in the press release that the company will also explain the community of photographers that Snapwire serves how to defend themselves against the unauthorized use of images on the Internet.What do we think?We believe that the deal will largely benefit both companies. Snapwire will learn the know how accumulated by Image Protect, at the same time IMTL will be able to increase the amount of clients it deals with. Companies such as LinkedIn, Scholastic, Google, and Hertz.Finally, on September 12, 2017, IMTL noted the production of a new corporate video that helps explain the company's business model. Jeff Orso of Television 101 Net collaborated on the project. Additionally, new efforts to obtain financing through new Crowd Funding site at https://minivest.com were also remarked. Lawrence Adams, CEO, was quoted:

"We are committed to the Crowd Funding process, as it provides a more long-term funding source than otherwise available in the current Micro-Cap space." Source

Regarding the financing information released recently, the last 10-Q was received on August 19, 2017, but nothing really remarkably was announced in the document, as the share price did not really react the following day. Additionally, as we said in the beginning, the CEO has been acquiring large a amount of stock recently. Check some of the open market transactions in the following table (note that A=Acquisition):Common Stock 8/30/2017 P 3000 A$.0144 1768049 D Common Stock 8/30/2017 P 15000 A$.017 1783049 D Common Stock 8/30/2017 P 10000 A$.0184 1793049 D Common Stock 8/30/2017 P 3000 A$.0185 1796049 D Common Stock 8/31/2017 P 10000 A$.0175 1806049 D Common Stock 8/31/2017 P 10000 A$.0175 1816049 D Common Stock 9/1/2017 P 10000 A$.0165 1826049 D Common Stock 9/1/2017 P 1000 A$.0199 1827049 D SourceConclusionCurrently trading with a market cap of $2.6 million, IMTL is an exciting story among small caps. With $0.2 million in net receivables and $0.42 million in accounts payables, the market seems to be looking more at the good news released than at the financials. In our opinion, in the presence of good news, we cannot really see why the share price would decline. To sum up, keep an eye on IMTL as its well positioned for growth.We will be updating our subscribers as soon as we know more. For the latest updates on IMTL, sign up below!Image courtesy of shianux via FlickrDisclosure: We have previously been compensated six thousand usd by a non affiliated third party, South Shore Marketing, LLC for a 2 day awareness program regarding IMTL. This agreement has since expired. We have not been compensated for this article and have not position in IMTL.

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