IDN - outlook by my dear friend Craig
Member of the POSALERT Club
I think we have found another short that ranks up there with the true POS of the world. Actually a fairly good product (I have seen it used in bars), but lets get serious: company would make more money selling fake IDs than these machines.
Anyway, here is a brief outlook:
Profile: "IDN manufactures and markets an advanced document verification system to determine the customer's age and validity of the ID to detect and prevent the use of fraudulent indentification."
Mkt cap: $67 million, at $8.55
Stock is on the run from the 5s. Company presenting at a conference on Monday morning (June 4th).
Short interest: 6.2%
Earnings? yeah right. From the latest earnings release (May 9): "..... announced today financial results for the first quarter ended March 31, 2001, with revenues increasing to $204,635 compared with $30,218 for the first quarter of 2000. For the first quarter of 2001, Intelli-Check® reported a net loss of $878,875, or $0.12 per share, compared with a net loss of $663,000, or $0.10 per share, in the year-ago quarter."
Price to sales is extremely high.....
Looks like only one broker covers the stock. Expecting gain of 0.04 for 2001, 0.41 for 2002. No idea where she/he gets these projections, but there must have been alot of pot smoking going on at the time.....
How is this company going to ramp up sales? Fake IDs have been around for a long time... Where has this company been? Even if there technology is good, putting on a national sales campaign is going to very tough and extremely expensive.
I think this company is a total POS financially.
But let's just forget all of the above. yep, just skip it like on TIVO (he he he, sorry, but I had to use TIVO on this since it has made us all lots of $$$ this week).
Just look at the following link and you will understand why I absolutely love this short. I counted 144,000 shares sold by insiders just since January 1st. Multiple sellers at any price. Shorts have gotta love it.
biz.yahoo.com
I currently do not have a position in IDN. Looking to short Friday afternoon or 10; whichever comes first. Will definately have a position by tomorrow though unless the stock collapses. Looking for "buy the rumor, sell the news" as far as the presentation on Monday is concerned. (Look at XYBR for an excellent illustration of this type of action this week).
One cautionary note: the stock trades on the AMEX, which is full of thieves and crooks. Be very careful with your orders. |
