Allied Security Innovations, Inc. (OTCBB: ADSV) Reveals Promising New Products
By StockFrontRunners on Jan 20, 2010 with Comments 0
Allied Security Innovations, Inc. (OTCBB: ADSV) is getting some liquidity on a release of two new security products announced on Wednesday. The products were developed through the company’s subsidiary CGM-AST and are intended to quickly secure products shipped in cartons.[BANNER]
Called Carton Secure and Secure T.R.A.C. 1.5 the products are described by the Allied CEO as holding unique designs which alone might be worth millions in the security seal market. The Secure T.R.A.C. 1.5 has some cost effectiveness added when it comes to sealing of small packages.
The stock has climbed on such a merry news announcement. After adding 300% and surviving the initial retracement the stock price travelled up mostly driven by investor’s expectations built within the new products.
It’s fair to say the stock is currently undervalued with 26 million outstanding shares it makes only 1.3 million in market cap for the company right now. Products are promising and so on but net losses, lack of cash and general leverage pushes the parent company out of the game here with their subsidiary possibly taking all the profit.
At a glimpse the products look promising but the real potential can hardly be evaluated only from what the Allied Security CEO says. The company other products are also popular in the market, but that doesn’t generate enough revenue for the parent company to book profit.
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