On Friday, February 2, we made some changes to the Tailwinds Select Portfolio. In comes ImageWare Systems, out goes Bioasis.
First off, IWSY. This company is well positioned in the biometric identity field. They have a cloud based platform that can verify identities through multiple methods (facial recognition, voice, fingerprint, etc.), and have partnerships in place with IBM, Fujitsu and CDW.
Revenue at IWSY appears set to accelerate rapidly in 2018, starting here in Q1. We are still getting up to speed on the story, but love what we’ve heard so far…more to come in the near future.
Meanwhile, Bioasis remains a company with great promise, and a solid management team/board. However, there is no compelling reason to own it at this time. In our opinion, they will need to raise money in the near future. It’s our impression that the Company is setting itself up for a total reset round that will be done with US institutions (friendly to the new chairwoman) and at a lower valuation.
However, the next round will likely be simultaneous (or followed shortly thereafter) with a US listing. When the round happens, we believe this will mark the bottom in the stock and will likely revisit it. With a novel platform, great team, and excellent clinical success to date, we believe the upside is huge and look forward to coming back on board at the right time.
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