Iddriven Inc (OTCMKTS:IDDR) has put together a huge run over the past few sessions. IDDR is potentially a key emerging growth story in the enterprise software space, with a number of possible catalysts still lying in the wings. The most recent communication out of IDDR is its announcement of an increase in authorized shares to be prepared for the future. The market showed a mixed reaction to the news.
On the one hand, it carries clear dilutive possibilities, but on the other hand, it’s also exactly what one might expect if we are looking towards an aggressive growth story. In other words, you have to have capital to take advantage of opportunity. According to the release, “IDdriven filed for an increase in authorized shares not only to be able to deal with market demands, but also to be in a position to start looking at scenarios for potential mergers and acquisitions.”
Iddriven Inc (OTCMKTS:IDDR) promulgates itself as an enterprise software company that has developed and is now launching the next generation in Identity and Access Management (IAM) enterprise solutions into a demand driven market.
IAM helps end-users to ensure that access across multiple technological environments is granted only to the right individuals. The Company’s flagship product — IDDR — is designed to manage large volumes of users and access rights over various applications in hybrid environments (cloud and on-premise). The Company’s flagship product — IDdriven — is advertised as “a superior, next-gen hybrid cloud-based solution and the new state of the art software delivered as a service (Software as a Service or \”SaaS\”).”
According to IDDR materials, “It is dynamic, seamless, scalable, and flexible with the widest array of features. Its plug-&-play functionality enables a new, untapped SME marketplace. Industry analysts project the highly fragmented, demand-driven IAM market will double from $9.16 billion in 2014 to $18.30 billion in 2019, a 14.85% CAGR.”
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As noted above, IDDR has become a red hot story on the OTC over the last few days, without much in the way of obvious catalysts. That said, there are possibilities here and this is a very small-float stock, and we still don’t see a particularly clear promotional campaign at work, so we have to try and take things at face value. At this stage, we have a strong move, and a follow-on step by the company to monetize that share increase for capital, which is either good or bad, depending on how you look at it.
“IDdriven’s technology base and the market it operates in, makes the concept of combining forces with other synergistic entities a realistic option,” states Arend Verweij, IDdriven’s CEO. “We want to make sure that we are ready for the right opportunity when it presents itself.”
Traders will note above 380% added to share values of the listing over the past week of action, but that move comes in the context of a larger bearish trend. Market participants may want to pay attention to this stock. IDDR is a stock whose past is littered with sudden rips. Furthermore, the name has seen a growing influx of trading interest, with the stock’s recent average trading volume running just under 1200% above its longer run average levels.
It pays to take note of this fact given the IDDR’s relatively small trading float of not even 22M shares. This type of thing is something to watch out for: with such a tight trading float, this kind of ramping interest can force a supply-shock squeeze.
At this time, carrying a capital value in the market of $1.80M, IDDR has virtually no cash on the books ($12K as of last reporting), which stands against a veritable mountain of debt, coming in at over $2.9M in total current liabilities. The company is pulling in negligible sales. Nonetheless, this is an exciting story. As we stated last time, even if everything doesn’t seem to perfectly add up, it’s worth tracking at the very least. Sign-up for continuing coverage on shares of $IDDR stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $IDDR, either long or short, and we have not been compensated for this article.
