New Trade Alert: PositiveID Corp. ( PSID )
PSID has emerged in recent trading as a strong opportunity for potentially outsized gains. The company’s news profile in particular, is very compelling and is a strong complement to a strong set of underlying technicals.
PSID develops molecular diagnostic systems for bio-threat detection and rapid medical testing.
The company’s proprietary airborne pathogen detection system called M-BAND (Microfluidic Bio-agent Autonomous Networked Detector), continuously and autonomously analyzes air samples for the detection of biological airborne threats in the form of bacteria, viruses, and toxins.
The best way to think about PSID and its MBAND threat-detection technology is as a frontline defense against terrorism. The company’s threat detection systems are the sort of things you are likely to see deployed at our airports and the recent wave of terrorist attacks in Europe means every country, no less the US, is on high alert.
Once you make that connection it’s not difficult to see why PSID and its MBAND technology is poised to become a key component of government spending – especially in the US where MBAND is currently being evaluated under the Department of Defense Joint United States Forces Korea Portal and Integrated Threat Recognition (“JUPITR”) Program.
In 2013 it was estimated that the US government spent around $16B to fight terrorism; that figure has jumped to around $100B in 2015 according to one national security expert. The figures for other countries are proportionally high too. France and the UK combine for an estimated $109B in annual spending.
Those enormous fiscal commitments mean that PSID’s technology has the potential for widespread deployment.
Indeed, PSID is already reaping those rewards. The company reported $2.9M in revenue for 2015 – a whopping 211% increase year-over-year.
More recently PSID announced that its subsidiary, E-N-G Mobile Systems, has shipped a 40-foot BSL-3 compliant mobile laboratory valued in excess of $700,000.
Commenting on the shipment, PSID Chairman and CEO William J. Caragol, said that, “ENG is an industry leader in designing mobile labs for chemical and biological detection, monitoring, and analysis. This mobile lab, developed under a large contract that will generate significant revenue for PositiveID during the second quarter and keep us on track to reach our revenue goals for 2016, is the latest example of our robust capabilities, expertise and best-in-class products.”
Developments around E-N-G Mobile Systems seem to be coming along thick and fast, leading to the conclusion that it could be a considerable catalyst for PSID over the near term. PSID also recently confirmed the launch of a dedicated website so investors will definitely be able to size up the growth potential.
Set against these positive developments, PSID’s near term outlook is getting stronger and stronger by the day.
Current entry is an accessible .008 with rising daily volatility bringing the company’s near term upside squarely in play.
PSID is pushing off support and is trading with a RSI of 35 on the daily chart. This is solid bounce potential and with the 50 DMA currently at .021, traders are looking at nearly 162% upside opportunity in the near term.
An even more realistic target is PSID’s 4-week high. That high of .0127 set on April 7, presents near term upside of up to 58%.
PSID is showing upward momentum, don’t miss it.
