The Parabolic Rise on Bravatek Solutions Inc (OTCMKTS:BVTK)

The Parabolic Rise on Bravatek Solutions Inc (OTCMKTS:BVTK)


Bravatek Solutions Inc (OTCMKTS:BVTK) is a microcap cybersecurity service provider that has been making a huge run in the charts. There has recently been extremely heavy trading activity in BVTK, which has been making a spectacular rise up the charts since mid-April. The company, which provides security, defense and information security solutions for corporate entities, governments and individuals, has recently signed a slew of new contracts and deals, adding to the optimism surrounding the company.

A look at the chart shows shares of BVTK trading at $0.0024. Over the most recent 52-week period, shares have traded as low as $0.00 and as high as $0.97. Over the most recent three-month period, shares are up a blistering 2,300%. And there appears to be plenty more where that came from, since shares of BVTK are up nearly 100% in just the past 5 trading sessions.

There has been plenty of speculative froth, to be sure. Average daily trading volume has been massive, with hundreds of millions of shares trading hands daily. Everyone, it seems, is trying to get out in front of what this tiny Texan micro-cap is trying to achieve.

Ever since April 19, Bravatek Solutions Inc (OTCMKTS:BVTK) has been priming the pump with plenty of press releases designed to generate new enthusiasm around the stock. In April, the company announced a strategic partnership with Virginia-based i3 Integrative Creative Solutions, LLC in which BVTK would gain access to huge government contracts potentially worth as much as $20 billion.

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However, keep in mind: this is not a $20 billion contract – instead, it has a theoretical “ceiling” of $20 billion. And, if you look at how tiny BVTK really is, this figure seems to be wildly inflated. In a letter to shareholders dated June 2, Bravatek described this as a $20 billion “contract vehicle,” which presumably means that it could open more doors at some later date.

That April announcement was followed by two additional contract wins. The first of these, dated June 2, involves a “worldwide exclusive agreement” to manage the construction crews of a strategic partner, Virginia-based Mile High Construction (MHC), which is building and upgrading the services of four major consumer telecom companies. According to the press release, the deal could result in $2.5 million in purchase orders from the likes of Sprint, Verizon, AT&T and T-Mobile.

And then on June 7, the company announced a similar deal with another Virginia-based company, HelpComm. BVTK will manage the construction crews involved with the deal. And there could be $6.5 million in purchase orders involved.

But there seems to be a lot of fine print involved here. For example, all of these deals seem to be based on some contingent event, such as the raising of needed financing. Moreover, these deals seem to call into question what the ‘core business’ of Bravatek really is.

On one level, the company seems to be playing up its cybersecurity-related software, hardware and services. And then, on the other hand, it’s releasing press releases about managing construction crews for partners. (The company did acquire the telecom assets of Viking Telecom back in June 2015.)

And then there are plenty of questions about the company’s underlying financial health. Financial information about the company is limited at best, especially since 2015. What is clear is that the company has minimal assets and revenues, as well as significant debt. Back in 2016, the company raised a $3 million line of secured financing.

And then there’s the matter of Ecrypt Technologies. Bravatek is the new name and BVTK is the new ticker symbol for what had become a very troubled company. In 2016, Ecrypt became the subject of a massive stock manipulation scheme, and the change in name and ticker symbol is one way to get past that unfortunate incident.

Certainly, Bravatek is trying to put a brave face on a difficult situation. The company’s letter to shareholders in June laid out all the steps the company is taking to grow. And the company’s Ecrypt One technology seems to be attracting attention from corporations and government entities, to the point where the company’s CEO mentions that there are “potential acquirers” of Ecrypt One.

But, to counterbalance that, the company mentions that there has been dilution of shareholders necessitated by recent debt financing. Moreover, BVTK is now working tirelessly to hunt down $6.1 million (not billion!) it is owed by others. For a company hyping a $20 billion contract, it seems odd that $6.1 million in contractual obligations is so prominent in the shareholder letter.

So, it’s definitely necessary to do a bit of due diligence before investing. But there’s sure to be more explosive moves for BVTK in the future, especially if the company can follow through on all the new strategic agreements it is signing. For more news on Bravatek Solutions and other fast-moving penny stocks, please subscribe to below.

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