ImageWare Systems Inc (OTCMKTS:IWSY) bounce back from all-time lows has received a significant boost. Investor sentiments have inched higher, on the company entering a definitive agreement with a local financial services provider to provide a multi-modal biometric authentication solution.
Share Price Analysis
The deal, which appears to have triggered renewed investor interest in the stock, comes just days after equity research firm ValueEngine initiated coverage of the stock. The firm reiterating ‘buy’ rating on the stock also continues to fuel the upward momentum.
Recent developments have helped reinvigorate the stock’s sentiments in the market. The stock has been on the receiving end of swelling short selling pressure over the past year. In 2018 alone, the stock shed more than 50% in market value as it plunged to all-time lows.
However, in 2019, bulls appear to be taking the fight to bears fuelling a rally from all time lows. With pullbacks from all-time lows, emerging as buy opportunities, the stock could as well be a break out play.
The emerging uptrend faces immediate resistance at the $1.40 level. A rally followed by a close above the critical resistance level should open the door for the stock to make a run for its 52-week highs of $2.05.
On the downside, ImageWare Systems faces immediate support at the $0.80 mark on any sell-offs. A breach of the support level could leave the stock susceptible to further drops in continuation of the long-term downtrend.
About ImageWare Systems
ImageWare Systems is a software company that provides identity management solutions. IS Biometric Engine is the company’s lead solution that is hardware and algorithmic independent. The solution is designed to enable users to utilize one or more biometrics in an integrated platform.
GoVerify IDA Deal
ImageWare Systems has started surging from all-time lows on the announcement that the company has secured a landmark deal for one of its authentication solutions. The company has since entered into a definitive agreement with a global financial service provider to provide its authentication solutions for a healthcare application.
Under the terms of the deal, the company’s GoVerify IDA biometric solution is to be utilized under the 21st Century Cures Act in the U.S. The deal is a breakthrough for a company that is increasingly eyeing new revenue streams. Immediate reports indicate the deal could be worth $12 million a year. The deal could also be followed with other agreements that would result in new revenue streams.
Late last year the company unveiled GoVerifyID Digital Identity Transformation Platform as part of its GoVerifyID Enterprise Suite product line. The new platform is designed to provide digital identity management while enabling support for regulatory and privacy compliance across multiple industries.
Jim Miller, Executive Chairman, and CEO of ImageWare Systems said, “This new offering continues Image Ware’s long history as a pioneer and innovator in the biometric identity management industry. Our new digital onboarding, document signing, and digital vault capabilities augment and further differentiates our authentication platform and solutions.
ImageWare Systems continue to elicit strong demand in the market. Late last year the company inked a partnership with Gatekeeper Innovation Inc. as part of an innovative collaboration to secure powerful opioid medications in abuse-deterrent packaging.
The new solution features ImageWare Systems pillphone and Gatekeepers, Safer Lock. The solution is designed to tackle the country’s opioid epidemic
Dr. Janine Bera, Chief Medical Officer for WellSpace Health in the Sacramento, California region, reports, “Safer Lock is an easy and convenient way to keep these medications available for use as they were intended while at the same time, preventing them from being used inappropriately.”
ImageWare Systems gaining traction with its innovative authentication solution is one of the reasons why the stock is eliciting strong interest in the market. ValueEngine upgrading the stock from a ‘hold’ to a buy attests to growing confidence that the stock is due for a major bounce back after hitting rock bottom in 2018.
The upward momentum is already gaining traction in response to the $12 million a year GoVerify deal. The fact that the deal has the potential to open up new avenues for revenues all but affirms the company’s long-term prospects. For microcap investors, ImageWare Systems is an interesting pick given that it is trading at a discount with huge opportunities for growth.
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Disclosure: We have no position in IWSY and have not been compensated for this article.