I have been watching this company/stock for about 9 months. I watched it fall and fall and finally settle where it has been for several sessions. Just this week I bought into the stock and believe it has a base here at about .12 to .14.
The company is getting contracts (looks like they are the "go to" company to become compliant with federal regulations). I believe the announcements of contracts will increase over the next several weeks. After going over the data provided by the company; I see them engaging in "moderate" growth ("moderate" does not mean little growth- rather it means that their income will not increase substantially since they are using licenses fees to purchase additional hardware and software), and "explosive" growth will come soon after that when the critical mass is built and they have all the computers they need to handle their growth. After that, all license fees will be basically profit. At that point, I see them seeking more capital (I hope via notes) and making a move to become the national and federal law enforcement required software to become federally compliant.
If I had to make a projection, I would say that this company will do fine in the short term (moving toward $3-$4 range) and then at the start of the new year moving up substantially to the mid-teens. However, there is a very real risk that a company may come along wishing to dominate in this space and purchase this company before it gets fully realized. If that is the case, I foresee a buyout in the $6-$7 range by year end (if the contracts become realized and grants are released as I trust they will be).
Any thoughts?
