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While we focus almost exclusively on Gold stocks and some other resource plays at BMR, there is the occasional exception when a company in the technology space grabs our attention and imagination – perhaps just from a technical analysis point of view.  That was the case back in May when we first started taking a look at iSign Media Solutions (ISD, TSX-V) which was one of the volume leaders at the time on the CDNX.

Here’s what we wrote May 24 when ISD closed at 50 cents:

“iSign Media has developed interactive mobile advertising/marketing solutions with patent-pending technology and seems to have captured the imagination of many investors.  We caution the stock has been volatile and of course the play is highly speculative but the company is beginning to show evidence of significant revenue potential.  Quite often in situations like this, the stock price will get far ahead of what’s actually happening on the ground at the moment (markets always look to the future).  With a current market cap of $24 million, that probably hasn’t happened yet with ISD.  Expect this stock to trade a lot based on technicals, “blue sky” potential and momentum.  We love entrepreneurial success stories, so we do hope ISD hits it big and investors make a fortune (of course many investors could also lose a fortune, so be careful).”

ISD ran as high as 66 cents by early June but technical momentum eventually broke down and the stock is now sitting at just 28 cents.  Volume recently has been very low, relative to what it was in April, May and June.  Despite the drop in the share price, ISD‘s 200-day moving average (SMA) continues to rise which suggests a long-term uptrend is still intact.  John sees other encouraging technical signs at the moment including evidence of strong support in the high 20’s.  We certainly haven’t given up on ISD – in fact, both John and Jon continue to hold their personal positions which were acquired at higher prices.  This is still a highly speculative situation which could go boom or bust but ISD‘s business model is interesting and certainly has potential.  John updates the chart below after ISD closed at 28 cents Friday: