Intelli-Check (IDN)

Company

"Intelli-Check®, Inc., the acknowledged leader in document verification has developed a patented technology to verify the validity of all currently encoded state and provincial driver licenses, state issued ID cards and military IDs including those that comply with AAMVA/ANSI/International Organization of Standardization standards. The technology can be used to increase security and deter terrorism at airports, shipping ports, rail and bus terminals, stadiums and arenas, military installations, high profile buildings and other sites where security is a concern. It also is a potent tool to help prevent economic loss from 'identity theft', the fastest growing crime in America." (company website)

IDN should be a good buy in the paranoia age.

Buy

7-Feb-05. IDN jumped twice last week on big volumes. It has been following the upper Bollinger band about two weeks. It could be ready to move back toward the averages, but price momentum (PPO) is strong and the trend is still strengthening (ADX). It will bear close watching, but there is still room below the previous 12-month peaks (see sidebar).

Sell

1-Mar-05. I decided to throw in the towel on IDN when it broke below both the 50- and 200-day moving averages. In theory, IDN might get some "bounce" from touching up with the support levels and rebound. But I see too many negatives in the chart to count on this happening: sharply falling price momentum (PPO), rising selling pressure (-DI), money flow about to turn negative (CMF), declining relative strength (RSI), and over a week in oversold condition (StochRSI).