A record-breaking year on profit generation complemented by plans to come up with a superior Concealed Weapons Detection System, explains why View Systems Inc (OTCMKTS:VSYM) is skyrocketing. The stock is currently trading in a steep uptrend after shrugging off short selling pressure.
Share Price Analysis
A spike in share price and market sentiments has helped power the stock through a tight trading range as it closes in on the $0.01 handle. Investor confidence on the company’s long-term prospects has also inched higher in recent weeks on growing optimism that 2019 could be a break out year for the company.
The company has already offloaded its Medical Therapeutics unit as part of an ongoing restructuring drive. The restructuring drive seeks to position the company to focus on security systems an area the company hopes to generate significant shareholder value. The reorganization has gone well with investors if a spike in traded volumes in the market is anything to go by.
Considering the strength of the upward momentum, View Systems remains well positioned to take out the $0.01 handle, a critical resistance level. A rally-followed by close above the psychological level should open the door for the stock to continue powering high, as part of the emerging bullish trend.
Conversely, below the $0.01 level, the stock remains vulnerable to further drops given the underlying long-term bear trend.
About View Systems
View Systems casts itself as a diversified company focused on state of the art security products. The company works on security and surveillance products commonly used in law enforcement facilities such as correction facilities as well as in government agencies
Why is View Systems Rallying?
Share price swings in the recent past have come on View Systems announcing plans to deliver new and comprehensive detection technologies. The company is currently working on the View Scan II system that will operate as a walk through a detector on the incorporation of multiple sensing devices.
Some of the capabilities that the new system will support include facial recognition as well as radiation detection and the ability to keep records of people entering and leaving premises. Wireless connection to a central network should make View Scan II a detector of choice, as a first of its kind smart detector.
“We have cleared the way by selling the Medical Therapeutics concern for cash and equity. Our roots have been high technology for the security market, Homeland Security and people protection. We are focusing on enhancing what we have been successfully producing. Several of the original engineers have rejoined this effort, and I liken it to ‘putting the band back together,” said CEO Gunther Than.
Increased focus on detection system comes on the heels of View Systems posting record numbers for FY2018. The company generated a profit of $1.138 million, a performance it plans to replicate in 2019 on focusing on detection systems. Conversely, the company has confirmed plans to divest its medical division Medical Therapeutics to a group of medical industry professionals.
Exit from the medical business should pave the way for View Systems to focus all its attention and resources in coming up with a superior Concealed Weapons Detection System. Plans are underway to launch the new system in the spring of 2019. The company also intends to focus on producing units as well as pursuing sales in the detection system space.
“The Secure Scan Weapons Detection System (WDS) has been used as a stand-alone unit, a mobile unit, or imbedded into walls or doorframes for concealed use. A digital image of the subject and location of contraband is captured and stored for immediate detection, archiving and later searching,” View Systems in a statement.
View Systems has powered through a tight trading range in recent weeks, providing early signs of a breakout from all-time lows. The stock looks set to continue its solid performance in response to 2019 outlook as well as underlying fundamentals.
Record profit of $1.13 million for 2018 attests to what investors should expect as the company moves to focus on its security detection systems. Investors taking note of the efforts put in place to strengthen the company’s prospects in the security and surveillance space should go a long way in strengthening the stock’s sentiments in the market, consequently, support further movements on the upside.
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Disclosure: We have no position in VSYM and have not been compensated for this article.