Adama Technologies Corp (OTCMKTS:ADAC) is yet again the center of attention after a series of positive news that’s seem to have triggered increased trading activities on the stock. Investor confidence in the stock has received a boost, with the company reaffirming its revenue streams as it also continues to pursue new deals with the potential of generating more cash flow.The stock has generated significant returns to investors who took time to read our previous update on why the company is an exciting pick on cryptocurrency ambitions and diversification strategy. Even though the stock has pulled back from highs of $0.12, it remains an exciting pick given the increased revenue-generating opportunities, expected to further strengthen its outlook on Wall Street. ADAC Daily ChartWith the stock currently trading at the $0.06 handle, it needs to rise above the $0.08 handle to affirm the emerging uptrend. However, taking into consideration the long-term engulfing bear run the stock could drop to the $0.03 handle on increased selling pressure.What Does Adama Technologies DoAdama Technologies is a venture capital company that invests in other companies. In addition, it pursues contracts in the defense sector. In 2016, the company completed the acquisition of Alpine technologies paving way for it to be a major player in the business of applying and servicing defense contracts.Through Alpine Industries, it owns 15 U.S Military contracts with a majority of them with the U.S Air Force. The contracts are for the manufacture of items such as M1 Mine Clearing Blades two bridles and AIM-9 missile body trainers.Recent DevelopmentsAdama Technologies has been awarded a $1.12 million defense contract. The contract is for the manufacture of Jury Links, a crucial component used in the landing gear of F-15 fighter jets. The contract is split into two parts. The first part should inject revenues of up to $225 million into the company’s books. The second order is worth an additional $900,000.
“The current business climate within this industry is looking extremely strong. There are lots of additional manufacturing opportunities and new contracts open for bid every single day. We are very optimistic and see a huge opportunity to increase our contracts and significantly grow our annual revenue.”
In addition, Adama Technologies is in the process of biding for $3 million worth of new government contracts. At least $2 million of the number will be for U.S military contracts. The company remains confident of securing the contracts given that it has been building parts for the military and defense contracts for years.In addition, the company has detailed several cost-cutting strategies that it believes will give it a competitive edge on price points.
“We have a great structure and system in place that allows us to keep our costs manageable and therefore our pricing on these contracts is always very competitive. “By having our own in-house engineering team, we have eliminated a very expensive line item that is often outsourced to a third-party firm. We also have a very committed labor force who has tremendous experience with these parts so our efficiency and speed are truly remarkable,” said President Harold Tanner.
According to the Chief Executive Officer, the company has reached a point where it can scale its business by pursuing additional contracts that can generate more revenues. The management is in the process of bringing in more subcontractors and phasing in additional third-party operators.Blockchain AmbitionsAdama Technologies juts like other companies have also set its eyes on Blockchain technology as it continues to explore ways of strengthening its competitive edge in the industry. The company plans to use the technology to track parts, record vendor performance and even automate its supply chain and ordering process.The company has already chosen a strategic partner for the launch of a new digital currency to supplement its blockchain ambitions. Dubbed CryX, the cryptocurrency is to be traded and exchanged in the company’s cyberstore.The unveiling of the cryptocurrency is part of the company’s push to set up an online retail platform, where people can buy and sell goods of all kinds. Mr. Tanner expects the new technologies to give the company an upper hand when it comes to bidding for new contracts and securing clients.What Next For Adama Technologies in 2018 Adama Technologies should be able to post impressive financial results this year given the number of contracts it has been awarded by the U.S government. In addition, the company is aggressively pursuing new deals as it looks to strengthen its revenue streams.Investors should start to see and view what the company is all about, especially with the listing on the OTCQB market. The revenue generation opportunities make the company an exciting pick, as a bounce-back play, after bottoming out from all-time lows.Disclosure: We have no position in ADAC and have not been compensated for this article.
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