Force Protection Video (OTCMKTS:FPVD) Looking To Rebound

Source: Force Protection Video

So far 2016 has been rough for shares of Force Protection Video (OTCMKTS:FPVD). There's been a shortage of news out of the company. The only real update was concerning the company's attendance at the CES show in Las Vegas. We think investors were hoping for some contracts with law enforcement while there. So far the company is just in the negotiations stage. However, that doesn't mean the company isn't close to some major developments. With shares near 52 week lows, we think FPVD is due for a bounce on any news or short covering.

FPVD has a lot of potential in today’s world. Both law enforcement and the public are demanding accountability of what takes place when police are out in the field. FPVD supplies police with on the body high-definition video cameras. The Force Protection Video LE150 camera is a rugged HD design which incorporates Ambarella (NASDAQ:AMBA) made chips that allow cameras and other devices to record high definition video. It is the same chip supplier of the popular GoPro sports cameras.

Driving the demand for FPVD's cameras is when you compare FPVD’s cameras with the competition. The LE10 is a small bodyworn high definition (HD) camera which is half the size and half the price ($195.00) of most law enforcement cameras currently available. The LE10 is rich with features such as still picture ability 8MP, WIFI, 4x zoom and audio recording. The LE10 does not require special software or expensive storage contracts. The video files can quickly be downloaded into a standard law enforcement case file and the micro SD cards are sealed in the provided static evidence bags and then securely stored in the department’s evidence locker.

FPVD also offers the Citadel management software with secure onsite audio and video recording storage. The Citadel audio/video management software and storage solution fills another request and need from law enforcement to provide an affordable solution to manage and store audio and video recordings securely on site without long term contracts and excessive storage fees.

After the CES show, FPVD announced that:

"The Company is now in negotiations with several audio and video manufacturers to represent their products in the US law Enforcement/security market. The Company is also in discussions with a major sports camera manufacturer to represent it in select markets. If the Company is able to come to agreements with the manufacturers, their product offerings will enhance as well as increase our overall sales and company visibility."

Helping FPVD is a number of tailwinds. The wearable technology industry is expected to grow to $20 billion by 2018. The popularity of GoPro (NASDAQ:GPRO) makes the space even more exciting. For law enforcement and FPVD, the events in Ferguson, Missouri created a worldwide uproar demanding accountability. President Obama is proposing a three-year, $263 million spending package to increase use of body-worn cameras, expand training for law enforcement and add more resources for police department reform. The package includes $75 million to help pay for 50,000 of the small, lapel-mounted cameras to record police on the job, with state and local governments paying half the cost.

The only other news to come out of the company is that it received a comment letter from the Securities and Exchange Commission with respect to the S-1 Registration Statement which it filed with the SEC on December 23, 2015. FPVD said it will work diligently to respond to the SEC’s comments and file an Amended Registration Statement. One of the comments related to FPVD’s common stock being quoted on the OTC Pink Sheets as opposed to the OTCQB. As a result of that comment, FPVD plans to file the appropriate forms with the OTC Markets Group to have its common stock uplifted from the OTC Pink Sheets and the OTCQB.

Currently trading with a $12.99 million market cap, FPVD is an exciting play in a growing industry. The stock has gotten quite active on the OTC markets and been a volume leader. Currently, FPVD has minimal assets and revenues. The company needs to deliver some contracts soon for the stock to rebound. For continuing coverage on FPVD and our other hot stock picks, sign up to Insider Financial today and get our free penny stock newsletter!

Disclosure: We have no position in FPVD and have not been compensated for this article.