While it may be an overstatement to deem Intellicheck Mobilisa, Inc. (NYSEMKT:IDN) the most underappreciated and underestimated stock out there right now, there's no way of denying IDN is a name that most traders are missing the boat on. Consider this an impartial remedy to that wrong - Intellicheck Mobilisa looks to be on the verge of a strong bullish move, fueled by all the right reasons.
First things first. If you're familiarity with IDN hasn't been updated in a few months, you'll need a refresher - it's a new company now. Oh, Intellicheck Mobilisa, Inc. still makes mobile apps for security purposes like an ID-checking app for sensitive facilities - the kind the Department of Homeland Security and the U.S. Army are concerned about securing. The company is in the midst of a deliberate rebuilding effort though, and that mindset is exactly what IDN shareholders needed to see.
Just to put things in perspective, Intellicheck Mobilisa was generating about $12 million in sales per year between 2008 and 2011. For a handful of reasons though, the company hit a wall in 2012; revenue slumped to $8.8 million. After a lackluster Q1 of this year, however, things seem to be getting on track on the backs of a handful of several new security apps. IDN drove $3.35 million in revenue in Q2, and it just reported a top line of $2.6 million for the third quarter. Perhaps even more encouraging is the fact that Intellicheck managed to turn a small profit last quarter. It was tiny - only a few thousand dollars. The cost/revenue relationship also took a turn for the better though, and in many ways last quarter's profit is the proverbial light at the end of the tunnel.
And that prod was just what was needed to get the stock going, which happened to clear a major hurdle today, setting up what should be a very big rally in the foreseeable future.
The chart below tells the tale. Fueled by today's 11% gain, IDN has crossed above the key 200-day moving average line (green) ... the grand-daddy of all technical crossovers. Between the volume and the progress, the bulls have made a statement about their opinion, and intentions.
Though less clear than the bullish jolt Intellicheck Mobilisa received today is the broad, subtle turnaround of the downtrend since August into a new uptrend. The low from late October was above the prior low in early Octobers, and IDN shares seemed to find support at the shorter-term moving averages today en route to a cross above the 200-day average line.
The bottom line is, though Intellicheck Mobilisa, Inc. is an obscure name with a wobbly history, the combination of technical and fundamental progress makes IDN a pretty good bet here.
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