Increased media coverage and a rising share price are two factors that may indicate the perfect storm is brewing around Implant Sciences (IMSC) heading into an expected critical catalyst that could prove to be the most significant event in the company's history, while also launching it into the mainstream of homeland defense and airport security.
Implant shares already returned huge gains for investors earlier this month after a run from well below a buck to nearly two, but a swift pullback has thus far proven to be a savvy buy for those that are looking at the company's future, and not necessarily considering the stock as just a trade.
After Monday's Boston-area news report drew attention to Implant's explosive trace detection (ETD)Quantum Sniffer technology, which is currently being reviewed for approval by the TSA, sparked another share price increase, IMSC closed up by another nine percent on Wednesday when the company announced yet another large order, this one for eleven units designated for various police and bomb squad units in China.
Given the rebellious and protesting nature of Chinese citizens over the past months as workers are finally fighting for higher wages and better working conditions, combined with the inherent terrorist threat faced by other factions operating within China's mainland, Implant is building a solid customer base in that country and the just-announced order is evidence that governmental entities are becoming believers.
Darryl Jones, who fled an Implant competitor in order to serve as the company's Vice President of Sales and Marketing, noted as such when he stated:
"Implant Sciences has been selling explosives trace detection equipment in China since 2005. With hundreds of systems deployed in a wide variety of security applications across the country, our products have a well-established reputation for quality and reliability. It's that reputation that helps the QS-H150 maintain its position as one of the top choices in the Chinese security market."
The QS-H150 is the handheld version of the QS ETD device, one of a line of offerings being developed and marketed by Implant.
As the company develops its customer base in various high threat regions around the globe, the real news that everyone is waiting for should unfold sometime next month - a countdown that can now be considered as within weeks, or even days
The TSA is set to render to its approval decision for Implant's technology at that time, well in advance of the December 3rd mandate that will necessitate all inbound air cargo on passenger airliners to be screened for explosives. Should the approval turn out positive, it's likely that Implant could face quick demand for its services and products.
Additionally, as evidenced in Monday's Boston news report (linked above), there are also expectations that the Quantum Sniffers could start showing up in airports on a near-term basis, as part of routine passenger screening. That could turn into a key element of the company's future, given that Implant's is a non-invasive technology and is also non-radioactive, unlike competing products on the market.
With a TSA approval, the Quantum Sniffer could become the standard for explosive trace detection, not just in the United States, but possibly around the world, too.
Given the team that the company has assembled, built on officials from companies such as GE Security (GE) and - as noted in reference to Darryl Jones - Safran's Morpho Detection, there are a growing number of believers in the homeland defense community. The rising share price and trading volume is an indication that investors are starting to believe, as well.
Any concerns held by investors based on pending debt due and the fact that the company still trades on the pink sheets could be alleviated by the TSA approval. It's expected at that point an influx of new orders could quickly set the financial future bright and provide the launching ground for a move to a larger trading exchange.
As the pending date with the TSA approaches, it could be wise to expect increased volume and volatility, but as IMSC has proven so many times before - this is one to consider accumulating on the dips.
Disclosure: Long IMSC.
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