Bravatek Solutions Inc (OTCMKTS:BVTK) Could Bounce But Caution Is Warranted

Today, we are covering again the last news released by Bravatek Solutions Inc (OTCMKTS: BVTK) (“Bravatek”). Subscribers are well aware that because of this article, and this other piece, the company is said to have a revolutionary email server, designed to protect emails and files attached in communications; the so called “Ecrypt One” proprietary software. In addition, we found out that several hedge funds had bought large stakes in the company; LG Capital Funding LLC, and Union Capital, LLC. Investors need to check the previous pieces to understand the background of the company.Recent news was very relevant. Thus, we believed that a new update was necessary. The press releases included information about the patent process of the email software, the hiring of a new VP of Telecom Services, and a new deal with Enterprise Sentinel, owner of the product DynaMatrics multi-factor authentication solution. Additionally, in this article, we will make a review of the social media comments on the company. There are many shareholders claiming that the company is a fraud. Hence, we will study their reasons with caution. The recent share price decline may explain why some shareholders are not happy with the company's performance:SourceNew DevelopmentsOn May 2 2017, market participants got to know that BVTK had filled a non-provisional patent application in the US Patent and Trademark Office to show the new innovations of its software application, the Ecrypt One product. Additionally, it was noted in the press release that BVTK obtained in this way the exclusivity to market the software. This is the reason to explain the application. The Chairman & CEO, Thomas A. Cellucci, PhD, MBA noted it in the following way:

"If all claims of the pending application are allowed, Bravatek will be able to prevent any competitors from releasing software that prevents any email (or attachments) not included on a finite and restricted list from being transmitted. This, of course, represents an new approach to email security that optimally-prevents phishing and other malware attacks." Source

Furthermore, for those interested in the product, we could read in the press release that is now available for users of Amazon.com, Inc.'s cloud platform, Amazon Web Services. Please, share with us your user experience if you could try it out. You can write a comment about it.Only two days later, on May 4, BVTK noted the addition of Pauline Ewald, who is an attorney with more than 20 years of experience. This is what the Chairman and CEO said:

"We are delighted to have Pauline join our team. She is a skilled Juris Doctorate, excellent Program Manager and highly respected by the Telecom manufacturers, providers and suppliers." Source

Finally, on May 10, 2017 BVTK noted that it had signed a contract with Enterprise Sentinel to distribute its multi-factor authentication solution. The new product is called DynaMatrics and it is useful for creation of difficult passwords that increase the security level of our communications. This is the way that Enterprise Sentinel explains the product in its website:

"The Enterprise Sentinel® - DynaMatrics® authentication solution is an extremely user friendly method of creating very secure one-time passcodes that are resistant to most forms of authentication compromise. Adding other form factors such as our unique Device as a Token technology to our DynaMatrics® Single Factor + authentication increases security even further while remaining very fast and easy to use." Source

BVTK's CEO noted the reputation acquired by the Enterprise Sentinel and its authentication tool in the press release; and Ken Kotowich, Chairman & CEO of Enterprise Sentinel, remarked that BVTK's marketing expertise as a key asset to help increase DynaMatrics' sales.Is this a fraud? - Some shareholder's twits say soWe went to check the company's twitter and we found that the general tone of the tweets is this tone:

"Not more money to this scam" by Elppdv‏ @Elppdv May 3 "Shareholders have a very public voice now....mIllions can see how you treat the shareholders and so many have lost thousands on this scam! " by Ruliquid Daytrader‏ @RULiquid May 3 "I hate selling but I put myself in the shoes of the loyal shareholder that are getting burned by the company everyday without mercy NOT COOL" by Eddy Castellanos‏ @EddyCast09 May 3

We could not find any reason to believe that the company is a scam, but we think that new traders should be very careful with the company from now on. The fact that many claim that the company is a fraud is not a good fact at all. In addition, we believe that the company will have to communicate something about it. It needs to defend its reputation. New deals signed and new patents are always appreciated, but if some shareholders destroy the reputation of the company nobody will want to invest in the company any more. Hence, the new press release will not have the same positive effect on the share price as it happened before.Share price decline - BVTK needs to explain itWe could not find any news about new convertible notes or share issues on the OTC markets page. Thus, the decline that started in April cannot be justified telling that the company issued more shares making the share price collapse. This is what some shareholders claimed, and it is wrong. Furthermore, the company did not release any new information regarding its operations to explain it. The value lost was quite large, thus we believe that something should be going on.In our opinion, BVTK needs to explain what is happening inside the company. Maybe, there is something that the market did not get to know, and that some big shareholders noticed. If this is the case, it may quite unfair for little shareholders. To sum up, stay alert and be careful with the company.ConclusionThe company continued to release positive news such as new hires, new deals with software providers and patent application. This should see the share price react positively, but reality is that the share price has been declining in April and May. We assessed the social media and saw that shareholders started to claim that the company is a fraud. Honestly, we cannot blame these shareholders as the value destroyed has been quite large. Hence, we assessed whether the company had issued new shares or whether bad news had been issued. But, we did not find anything to justify the decline so we advise investors to be careful with the company. In our opinion, the company needs to communicate something to justify the decline. Until then, we will keep informing. We will be updating our subscribers as soon as we know more. For the latest updates on BVTK, sign up below!Disclosure: We have no position in BVTK and have not been compensated for this article.