Imageware Systems Inc (OTCMKTS:IWSY)
Imageware Systems Inc (OTCMKTS:IWSY)‘s products are used to manage secure identification credentials, including national IDs, passports, driver’s licenses, smart cards and access control credentials. The $165 million company’s patent portfolio consists of nine U.S. patents and four overseas patents, and it completed a $10 million equity financing last year that allowed it to eliminate all long-term debt and existing Series C and D preferred stock.
|Flickr/The U.S. Army|
|Different branches of the military are taking advantage of new biometric technologies.|
Imageware Systems Inc (OTCMKTS:IWSY) was recently awarded a $2.2 million contract by its largest customer, the U.S. Department of Veteran Affairs, to expand its personal identity verification capabilities across federal, state and local lines. The U.S. Navy said last week that it has deployed a mobile biometric solution supplied by Imageware Systems Inc (OTCMKTS:IWSY) as part of the Navy’s Identity Dominance program.
Imageware Systems Inc (OTCMKTS:IWSY) also has a contract with Ecuador’s main port to use its biometric software platform to credential port employees, contractors, vendors and visitors who have access to cargo areas. The seven-year contract is expected to generate over $3 million.
Imageware Systems Inc (OTCMKTS:IWSY) is up an astronomical 122% this year. It currently trades at about $1.80 a share, with analyst projections as high as $3.50.
Risks to Consider: Obviously the biggest risk is the uncertain future of the facial recognition industry. By virtue of their size, both NXT-ID and ImageWare are susceptible to volatility. These stocks aren’t for the faint of heart.
Actions to Take –> Considering it has ties to government entities and its products are being tested in law enforcement, NXT-ID (OTCBB:NXTD) may be worth a small position in your portfolio. Take it slow and add to it as the business develops. Considering IWSY’s potential double-digit upside for the rest of this year, I’d buy in small increments.
P.S. — The next privacy threat won’t come from the IRS, the Department of Justice or the NSA. Instead, the government’s own data suggest it could come through a device President Barack Obama’s been using since the day he took office. Get all the details by clicking here.
– Karen Canella
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