Flashback: Taragold (TRGD $0.89) - 8 month gains of 370%
The original Microcap Monday report (emailed to free subscribers March 19th) can be found here: www.stockhouse.ca/shfn/editorial.asp? edtID=18167
Proof that miracles really do happen on the Pink Sheets. While 90% of the stocks on this wild west exchange are nothing more than a disaster in the making (or a scam), ... Taragold which we featured at $0.19 has managed to gain 370% even with a poor share structure. Congrats to anyone who managed to hold on this long.
Bioscrypt (BYT/TSX $0.56)
www.bioscrypt.com
52 week high $1.34/Low $0.53
2006 Revenue Approx. $15 million
Losses of approx. $1 to $1.5 million per quarter
Approx. $6 million in the bank
Shares Outstanding: 60 million
Strategic partners and customers include: the U.S. Army, American Express, BellSouth, NASA, NATO, Continental Airlines, Intel, Atmel, HID Corporation, Honeywell, Mexico City International Airport, Madrid International Airport, Cairo Airport, the Kuwait Stock Exchange the Bahrain Ministry of Interior, South African Police, California City Hall, Superior Tribunal of Justice of Mexico City (the largest courthouse system in Latin America).
Strong growth in 2007 should come from several catalysts including the Homeland Security Presidential Directive 12's Personal Identity Verification program, the Registered Traveller program and the Transportation Workers Identification Credential program.
About Bioscrypt
Bioscrypt Inc. is a leading provider of advanced finger scan technology offering their customers a wide range of biometric options for secure access to facilities, equipment and information. Markets include Physical Access Control, Logical Access Control, Time and Attendance , Cash Handling and Loss Prevention. Industries include Transportation, Government, Airport and Airline, Banking and Finance, Healthcare.
Banks are eager to halt theft of personal information and airlines need to cut down security waiting time. Frost & Sullivan analyst Rob Allen predicts the market for this technology will top $1.4-billion (U.S.) by 2008. In 2004, the market was only $527-million (U.S.). Biometric technology identifies people by physical traits, such as fingerprints or voice. The Canadian Air Transport Security Authority has already adopted fingerprint-based biometric identification. Banks are experimenting with biometric technology to cut down credit card fraud, which amounted to $2-billion (U.S.) in 2005
Products:
www.bioscrypt.com/products/products.shtml
GSA Qualification in FIPS 201
This was an extremely important certification received a couple months ago that will open up tremendous opportunities in 2007. Bioscrypt's fingerprint algorithms were qualified by the General Services Administration (GSA) for use in the United States government's personal identity verification (PIV) program.
In August, 2004, Homeland Security Presidential Directive 12 (HSPD-12) was issued mandating the establishment of a standard for identification of federal employees and contractors and that a common identification credential be created to access both physical and logical assets. In response to this directive, the National Institute of Standards and Technology (NIST) published the Federal Information Processing Standard Publication 201 (FIPS 201), Personal Identity Verification (PIV) of Federal Employees and Contractors in February, 2005.
Under FIPS 201, the PIV credential is required to contain two fingerprint templates that are compliant with the ANSI/INCITS 378 fingerprint minutiae data interchange format standard, to enable the authentication of an individual. These two standards- based fingerprint templates are mandated to be stored on the PIV card and made available for use by agencies for physical and/or logical access control.
With the GSA listing, Bioscrypt's fingerprint algorithms are now qualified to be used to create the ANSI 378 templates required for PIV card issuance and for cardholder verification.
"We believe the FIPS 201 requirements are tailor- made for Bioscrypt solutions as they incorporate the products we have brought together to form our Door to Desktop technology. The opportunity exists to sell our biometric algorithm for use at the point of credential issuance; our readers for physical access control; and our software for logical access control," said Mr. Williams. "Our ability to sell our Veri-Series readers has positioned us as the market share leader in the biometric physical access control market as recognized by third party consulting firm Frost and Sullivan, and we plan on leveraging this position as we bring FIPS 201-compliant readers to market. We have also begun to position our VeriSoft application for this opportunity having already integrated the product with one of our partner's end-to-end FIPS 201 solution."
There is also increasing risk at ports and harbors throughout the United States and initiatives by Homeland Security include card readers and biometric (fingerprint) scanning for everyone working in these areas or arriving from overseas (especially at container ports). In the spring of 2006 a Bioscrypt technology partner AMAG (the Bioscrypt technology is embedded in their readers) was awarded a contract to protect one of the busiest port areas in the United States. With the approval of Bioscrypt's algorithms for FIPS, an entirely new set of security products will soon start to hit the market that should provide some of the most advance security in the world.
HSPD-12
Homeland Security Presidential Directive 12 (HSPD- 12), and the associated Federal Information Processing Standard 201 (FIPS 201) serves as the blueprint for what agencies can use to build their Personal Identity Verification (PIV) solutions.
The Office of Management and Budget (OMB) has directed federal agencies to purchase only products and services from the General Services Administration (GSA) Approved Products List for the implementation of their PIV solutions.
Under FIPS 201, the PIV credential, a card, is required to contain two fingerprint templates that are compliant with the ANSI/INCITS 378 fingerprint minutiae data interchange format standard, to enable the authentication of an individual. It is for this reason that Bioscrypt success this August in qualifying their ANSI 378 finger minutiae matching algorithm with the GSA was a major move forward.
Subsequent to that qualification, they also made announcements with respect to having a finished reader available for the program, using a GSA approved sensor, and that their VeriSoft offering supports the PIV logical access requirements.
The Stanford Group Company (an independent market research firm) values the HSPD-12 market at approximately $1.3 billion over five years, with the bulk of the revenue flowing in fiscal years 2007-2009. Bioscrypt has the technology and partnerships in place to take a substantial chunk of this market.
Conclusion
This is not a short term trade by any means, but should be a solid company with strong fundamentals and growth opportunities for 2007. Risks in the $0.50's should be minimal while it trades at the 52 week low. We'll follow it as a Q1/07 tech speculation but after that period we would re-assess based upon new contracts, financials, and the industry itself.
