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Intellicheck Mobilisa (IDN) - An Undervalued Stock With Increasing Market Value Potential

|Includes: Intellicheck, Inc. (IDN)
Summary

Market Expansion, Technicals, Insider Purchasing, and Analyst Ratings All Signaling a Turnaround.

Management Proving Why This Stock Currently Under $1 Should Be Trading Much Higher.

Investing Using Logistics, Technicals, and Insider Tracking Prove Beneficial.

QUICK COMPANY RECAP

Intellicheck Mobilisa (NYSEMKT:IDN) is no stranger to the identity verification market. Within the past year, Intellicheck has undergone a huge management transformation for multiple reasons. To say the company had previously been mismanaged may be a bit harsh, however, the potential had not been touched under previous management. William Roof, PhD has stepped in to fill the shoes of former CEO, Nelson Ludlow, PhD. Dr. Roof brings with him 30 years of senior management experience along with 30 years of extensive knowledge of the commercial and government sectors. Dr. Ludlow remains a consultant with Intellicheck Mobilisa. Another beneficial addition to the company has been Bob Sanfelippo as Vice President, Sales. Bob, whether directly or indirectly, has certainly had a hand in expanding Intellicheck Mobilisa's penetration within the markets (hotel/travel, government, retail, etc.). With the right guys in place, we are now beginning to see the turnaround Intellicheck Mobilisa needed and promised within the market. In an effort to increase market exposure and communication Schultz Public Relations, LLC has been hired to oversee the Public Relations matters.

RECENT COMPANY SUCCESS

Intellicheck Mobilisa continues to penetrate existing markets as well as expand their improved products to new markets. Continuous expansion within the military proves to be a successful growing market as they continue to move from military base to military base. We can expect with Dr. Roof's military experience, knowledge, and contacts this continues to be fruitful for the company.

The retail sector is now proving to be an area to expand greatly within. Recent contracts with Helzberg Diamonds (230 retail locations), an unnamed major U.S.-based multinational telecommunications corporation (3000 retail locations) with an estimated $1.5 million value, and American Beverage Licensees shows what management is capable of in this short amount of time.

The travel/hotel sector is another area, which could prove to be a huge step for the company with their Guest ID™ product. Intellicheck Mobilisa and Skytouch Technology recently entered a partnership to integrate Guest ID™ with Skytouch's Hotel OS to improve the guest check-in experience in efficiency and security. Skytouch Technology currently has a presence in over 6,000 hotels and 60,000 users.

The other key piece of information is that Intellicheck Mobilisa's new management team has been working to increase the product margin and their product brings with it a recurring revenue. With a growing concern in identity theft, every market proves to be ideal for Intellicheck Mobilisa's products and they have done an excellent job at providing a solution for various markets (military, law enforcement, retail, hotel/travel, government, etc.).

CURRENT ACTIVITY/INDICATORS

Intellicheck Mobilisa is currently trading under $1 with a 52-week range of 0.77 - 6.37. If technicals are more your speed, the 5th Elliott Wave seems to have been recently completed and indicators point technical traders to believing a reversal is near or now in effect. Recent volume spikes lead traders and investors to believe there are "bigger boys" taking positions and looking for a company turnaround.

Net institutional purchases have increased 54.32% (561,320) from prior quarter to latest quarter. Dr. Roof recently purchased 6,000 shares at $1.41pps. AWM Investment Company, Inc. indirectly owns 1,985,022 as of January 9, 2015. The current estimated book value sets the pps at roughly $2. Aegis has given IDN a "buy" rating and a current price target of $3.00 is given.

The company has little debt and as previously mentioned, are restructuring their product margins to increase revenues with their recurring subscription services. While estimated growth was less than favorable, it seems that new management will stop at nothing to prove their worth to investors as well as board members.

FINAL NOTES

Intellicheck Mobilisa has an untapped market growth that is now being capitalized on by new management. The company has also been working on rebranding and re-innovating their products to better represent the products and provide the end-users with better overall experiences. With establishing recent partnerships with software companies the company is instantly expanding their visibility within the market while establishing a relationship with customers.

A much needed assessment in costing/pricing of products is taking place to increase revenue in initial sales as well as recurring subscription services.

Disclosure: I am/we are long IDN.

Additional disclosure: I have been long IDN.