Summary
- I’m revisiting Intellicheck because of its spectacular fall from a high of over $15 per share to a current share price of $2.50.
- Intellicheck is an identity verification company that prevents financial fraud, with a 99.9% record of success in identifying fake identification documents.
- Although a perfect storm of issues caused Intellicheck’s share price to fall, I think the current share price presents an amazing value right now.
- Insiders appear to agree – the CEO and CFO have been loading up on shares through open market purchases.
Intellicheck (NASDAQ:IDN) is an identity verification company that can reliably verify identification documents within milliseconds. With its technologies, databases, and platform, it is an invaluable resource for companies looking to eliminate fraudulent transactions.
Identity fraud is big business, and it’s only growing. It benefits all companies to put safeguards like IDN’s products in place. Bryan Lewis, the CEO of IDN, relayed that losses from identity fraud have increased to $52 Billion annually from $16.8 Billion just four years ago according to Javelin Strategy and Research. An increase of 200% in incidents of identity fraud is waking up financial service companies and other industries, and I believe IDN can become a key industry player in reversing this trend.
I liked IDN back in 2020 after the initial shockwave of the pandemic saw the share price fall from about $10 to just over $2.00 per share. After my article when IDN was at around $5 in April of 2020, the price proceeded to triple to over $15 per share before recently returning again to $2. At the time of my initial article, I believed that the pandemic had only exacerbated online financial fraud, and that IDN’s steady customer wins and market penetration justified a strong buy opinion.
Why did it fall so much, and was it fair? Fairness really doesn’t come into play in the usual sense of the word. This is the Market, after all, and stocks often overshoot on the way up and on the way down. I like to review a stock after a big plunge and see if the Market has thrown out the baby with the bathwater.
I think the company is worth a lot more, and we won’t have very long to wait before it becomes apparent. Against a complex macroeconomic backdrop, I think IDN finds itself in a favorable position for whatever may come.
The rest of this article can be found here at Seeking Alpha: Intellicheck is Ready for a Comeback
