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Bravatek Solutions Inc (OTCMKTS:BVTK) On The Verge Of A Breakout

Bravatek Solutions Inc (OTCMKTS:BVTK) On The Verge Of A Breakout
Written by
Jarrod Wesson
Published on
June 26, 2017
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Bravatek Solutions Inc (OTCMKTS:BVTK) provides products to protect governments, companies and individuals against cyber-attacks. More specifically, the company's most exciting software development is the “Ecrypt One”; an email server designed to protect emails and files attached to communications. Many corporations will need to keep compliance in the near future with new information security regulations, such as the Health Insurance Portability, and Accountability Act. The internet is become more risky with each passing day. Companies and individuals need to adapt to the latest technologies for protection against cyber-attacks. BVTK is making the change possible, and shareholders are profiting from it.The launch of this revolutionary product was the cause of the run as well as the high volume that we've seen this year. Hence, we will try to assess this product in this piece. Additionally, we will explain the new strategic alliance signed with Helpcomm, Inc, and the new opportunities that this new collaboration represents. First, have a look at the price action in the following chart.SourceThe technology - Ecrypt OneEcrypt One brings a more convenient and secured alternative to the traditional Microsoft Exchange that many organizations and individuals use. Many Security Officers and Compliance Officers have already understood that operating servers are receiving more and more attacks nowadays, thus using mail servers not provided by Windows or Mac is becoming very popular. Cyberattack WannaCry that infected many big institutions in May 2017 was the most recent evidence. Hackers took advantage of the vulnerability in Microsoft's implementation of the Server Message Block (SMB) protocol to obtain the control over the machines infected. That was the most famous and recent example, but everyday organizations need to deal with many other attacks that are not so advertised in the media. Have a look at the increase in the breaches caused by hacking and malware in the recent time:Number of breaches per threat action (Source: Verizon’s 2014 Data Breach Investigations Report)What's BVTK proposing?The company provides specific software for the following industries:-Healthcare: Carefully saving contact information of the patients is quite important for the healthcare industry. According to the company's website, thanks to BVTK, "with a few mouse clicks, exchanging personal health, medical, and financial information becomes attainable and realistic rather than heightened security and breach concerns". Customers can share scanned images, lab results, and vitals in a confidential manner thanks to Ecrypt One.-Government and Military: The product is designed to meet "the national security and military specification standards". The software is said to be in compliance with the Federal Information Security Management Act (FISMA). Additionally, the source code is available for review by the customer, as it is always usual in this sector.-Legal and Financial services industry: BVTK brings to firms operating in these industries the ability to do virtualization and BYOD, while maintaining the system closed and secure. Additionally, the product is in compliance with the following acts and regulations that banks and law firms know very well: "Sarbanes-Oxley Act (SOX); Gramm-Leach-Bliley Act (GLB) Act; Personal Information Protection and Electronic Documents Act (PIPED Act, or PIPEDA); European Union Data Protection Directive". Finally, the company is open to provide customization, implementation, and post-sale services.Strategic alliance signed with Helpcomm, IncHelpcomm, Inc. provides telecom construction services, based in Virginia. On June 6, 2017, both companies announced a "Strategic Alliance", which day traders can check in this link. If you have little time to check that contract, then these are the most important terms of the agreement:

"The Company will provide at least $200,000 in business expansion funding to HelpComm within ten (10) business days of execution of the agreement, and 40% of profits from services performed by HelpComm pursuant to receipt of the expansion funding from the Company will be allotted to the Company. The Company will provide HelpComm up to an additional $100,000 of expansion funding per fiscal quarter, HelpComm will provide job-related purchase orders to the Company for administration, accounting and fund distribution. The Company will provide project management and sales services to HelpComm and the parties will support each other’s marketing and promotional efforts." Source

What does the contract mean ? This is a collaboration agreement between the two groups. It is not an acquisition or a merger. It means that both companies will support each other to increase the revenues of both groups. Each company will bring the know-how accumulated in its industry in order to provide better services to customers. As we are assessing BVTK, let's review what Helpcomm will bring to the company. These are the obligations of Helpcomm:

"Listing Bravatek in all appropriate sales and marketing materials as an exclusive alliance partner. Helpcomm agrees to activate or reactivate their website upon execution of this Agreement. Provide timely responses to both technical and administrative questions posed by Bravatek. Promote Bravatek’s product and service offerings whenever possible. Aid Bravatek in the writing of any technical/marketing/sales documents when requested and participate in mutually-agreed upon sales calls. Provide job related Purchase Orders to Bravatek for administration, accounting and distribution that will be shared with HELPCOMM. Provide bi-weekly payroll reports to Bravetek for payroll related jobs." Source

What are the projections expected? We could read in the agreement that the companies expect the following revenues from the contract: "both parties agree that the expected gross revenue resulting from work and services to be performed under this Agreement will be no less than six million five hundred thousand dollars ($ 6,500,000.00)". This is a lot of money. We believe that market participants failed to read the whole contract and this information was not correctly incorporated into the share price. If this is true, then shares of BVTK should be worth much more. We encourage day traders to treat this information with extreme caution, since this is only a projection.ConclusionWe reviewed the company's product and that it is gaining importance due to the increase in hacking and malware attacks. Additionally, we saw that the company is said to be in compliance with the regulatory acts specific for the Healthcare, Military, Legal and Financial services industries and is able to adapt its product to different demands of these industries. Finally, we saw that the company signed a very rewarding contract with a player in the telecommunications sector. In our opinion, market participants did not correctly check the projection hidden in the contract. Hence, we encourage day traders to check the next revenue line.For more information about this company, please check our coverage on BVTK. There are many other agreements with relevant partners, and more information about its products. To sum up, the company's technology is valuable and it is signing agreements with other companies. Thus, every thing should be taken into account. Furthermore, day traders will become even more interested once the company sends up to date information of its financial situation. Thus, be alert on this name, a breakout could happen soon. We will be updating our subscribers as soon as we know more. For the latest updates on BVTK, sign up below!Image courtesy of FlickrDisclosure: We have no position in BVTK and have not been compensated for this article.

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