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It's been over two months since Golden Mean's initial report on Insignia Systems Inc. (NASDAQ:ISIG), and with share prices breaking out to new highs on sharp volume increases this past week, we thought it would be useful to provide readers with a reminder. ISIG stock ($3.75) is beginning to take on the look of a potential momentum stock, and Insignia Systems is already profitable, with potential catalysts on the horizon. We hope some of you took the opportunity to initiate positions in ISIG during the August dip toward $2.50, but for those still on the sidelines, we suggest learning the story first, while stating our opinion that ISIG stock should tick to at least $4 very soon.

Q2 results (reported July 19th) are now ancient history, but worth noting for continued increases across the board in revenues ($5.85M; $5.12M of POPSigns), gross margin (55.2%), and operating income (865k). Expenses were held in check, leading to EPS of .06 for the quarter and .10 for the first half.

ISIG 5-yr Daily Chart
Additionally, cash is up to $3.09M, despite the fact that accounts receivable increased 693k, with payables and accrued liabilities decreasing 662k during the period. Clearly, operations are moving in the right direction, and any improvement in receivables collection would result in cash growing even more rapidly. Meantime, on Sept. 6th news broke that the Valassis joint selling alliance had yielded its first POPSigns contract, and that several significant proposals are now brewing in the pipeline. It is the alliance with Valassis that holds the most immediate opportunity for the company to drive results for its POPSigns program, as Valassis maintains well-developed relationships with numerous large-scale manufacturers, including Proctor & Gamble Co. (NYSE:PG), that Insignia can potentially leverage. Finally, the pending antitrust lawsuit against News America and Albertson's holds the potential for long-term blockbuster outcomes in favor of Insignia and ISIG shareholders.

Golden Mean Stock Report likes the Insignia story, and we think ISIG stock could have legs from here. We encourage readers to learn the ISIG story and pay particular attention to how the company's relationship with Valassis unfolds and contributes to the earnings picture. Longer-term, the antitrust case proceedings will attract speculators and could lead to increased volatility. We don't like to chase stocks, but after the healthy pullback and subsequent breakout, Golden Mean Stock Report likes ISIG stock, and suggests readers keep a close eye on the name.

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Source: Insignia Update -- Recent Breakout May Be a Sign of What's in Store