Ironclad Encryption Corp (OTCMKTS: IRNC) has started the second quarter on a roll after losing more than 80% in market value in the first quarter. Does the stock have what it takes to bottom out after a harrowing crash in 2018?
IRNC Catalysts And Share Price Analysis
It appears IronClad has hit a bottom and due for a major correction on the upwards. A spike in market activity, as well as share or price signals, renewed investor interest in the stock. The stock securing seven new patents from the U. S Patent and Trademark office also appears to have strengthened the stock’s market sentiments.
While the stock faces an uphill task to turn bullish, a resurgence from all-time lows is a sign of things to come as the bullish momentum continues to gather pace. After the recent spike, the emerging uptrend faces resistance at the $0.04 mark.
A rally followed by a close above the resistance level should open the door for the stock to make a run for the $0.10 mark, the next substantial resistance level. For IronClad to turn bullish, be it in the short term, then it will have to rally and find support above the $0.21 mark.
About IronClad Encryption
IronClad Encryption develops and licenses cyber software technologies used in the encryption of data files as well as electronic communications. The company is currently selling ICE-enabled security applications, subscriptions services, and ultra-secure BlackICE gateway.
IP Portfolio Strengthening
IronClad Encryption securing patents touching on the securitization of temporal digital communication, executable coded Cipher Keys as well as securitization of user-wearable devices is a significant milestone. The patents should go a long way in strengthening the company’s intellectual patent portfolio.
“Having these patents granted is an important milestone for IronClad to secure its patent portfolio and deliver highly differentiated, best-in-class security products. Our patent portfolio is one of our greatest assets and will serve as the foundation of the company’s success for years to come,” stated JD McGraw, President, and CEO of IronClad Encryption.
Layer 3 Communication Validation
Patents approval is not the only milestone that continues to validate IronClad Encryption long-term prospects. Late last year, engineering firm Layer 3 Communications tested and verified the cyber defense company’s cyber technology ICEmicro.
According to Layer 3 Communication CEO, Rodney Turner, Ironclad’s cyber defense technology performs, as designed and intended, in ultra-secure and differentiated products. The ICEmicro technology is designed to secure communications between and among software devices as well as network equipment.
The technology can also ensure secure data communications between data centers as well as cloud and hybrid environments. The technology also seeks to ensure secure data communications between Docker containers that have become increasingly popular among software developers.
Layer 3 Communications’ validation and endorsement of our ICE micro technology is a major milestone for IronClad. Layer 3’s third-party written evaluation of our technology gives IronClad true market credibility,” stated Mr. McGraw at the time.
Charter Corporation ICEmicro Deal
The Layer 3 validation came on the heels IronClad Encryption entering into an agreement with Charter Trading Corporation for the deployment of cybersecurity technology. Charter intends to deploy ICE micro to secure cyber transmissions in its Texas headquarters as well as operations in Latin America.
According to IronClad CEO, a deal with Charter Corporation opens the door for ICEmicro to gain popularity and exposure as a premier cybersecurity tool on the global scene. The management is currently pursuing a partnership with other companies specializing in cloud storage, gateways and medical records as it seeks to ensure widespread deployment of the cybersecurity solution.
What Next for IronClad Encryption
IronClad Encryption underperformance has everything to do with management failure to issue press releases that would underscore underlying developments as well as long-term prospects. The stock, as a result, has taken a significant hit. The subdued market activity also indicates that investors are staying clear of the stock.
However, the company appears to be doing well behind the scenes. By securing seven crucial patents, the company has strengthened its IP portfolio, ideal for generating long-term value. In addition, the company’s ICE micro technology appears to be gaining traction as a cyber-tool.
That said the stock is a potential bounce-back play after taking a significant hit over the past year. Positive news should fuel the upward momentum, going forward, as the stock appears to have hit a bottom.
We will be updating our subscribers as soon as we know more. For the latest updates on IRNC, sign up below!
Disclosure: We have no position in IRNC and have not been compensated for this article.