ADAMA TECNOL CORP (OTCMKTS:ADAC) is plotting a comeback after being on a free fall for the better part of the year. Over the past one month, the stock has risen by more than 200%. The fact that the rally has come in huge volume is already eliciting suggestion that the venture capital company could be a breakout stock heading into the New Year.Renewed investor interest in Adama Technologies has helped trigger a buying spree that has seen the stock trade in an uptrend in recent weeks. However, the stock has pulled back from recent highs of $0.09 and is currently trading at the $0.06 handle.Given the strength of upward momentum, all indication is that, the stock could edge higher following the minor pullback. Immediate resistance is at the $0.09 mark, above which the stock could make a push for the $0.20 handle. ADAC Daily ChartOn the downside, Adama Technologies faces immediate support at the $0.04 handle below which, it could drop to the $0.02 handle.Investors’ confidence should continue to grow, given the company’s diversification strategy that seems to have positioned it for accelerated growth, going forward.Before we look at what is likely to push the stock higher heading into the New Year, let us look at what Adama Technologies really does.Adama Technologies Business Overview Adama Technologies is a publicly traded venture capital company. It owns, operates and invests in technology companies as well as startups as part of its core business. The company claims to employ a precise investment matrix that allows easy identification, evaluation and selection of high growth, high yield companies for investing.In addition to pursuing companies worth investing in, Adama Technologies has announced plans to diversify its core business with an eye on the cryptocurrency space.Stock CatalystConfirmation that the company is set to pursue growth opportunities in the cryptocurrency space is the reason why the stock has been receiving a lot of love on Wall Street. The venture capital company has already announced plans to launch a new digital currency called CryX.The company has also selected a strategic partner for the launch of the digital currency. The digital currency is to be traded and exchanged within a cyber-store owned, operated and managed by Adam Technologies. It will also be exchanged in a new cryptocurrency exchange site called Bit Trader Live.Given the hype around cryptocurrencies, it does not come as a surprise that Adama Technologies is ticking higher. Any company that gets a head start on the digital currency space is poised to enjoy accelerated growth given the opportunities that are cropping by the day around the emerging technology.The launch of the cryptocurrency will help the company build a first-class online retail platform according to the Chief Executive Officer, Eric Sills.The CryX marketplace will feature high-end consumer products that can be bought and sold using the CryX token.
“First, we are planning to build a first-class, online, retail platform that allows users to buy and sell goods of all kinds while allowing payment to be made in a whole variety of cyber and cryptocurrencies. Secondly, we have partnered with BitTraderLive.com to allow users to exchange our currency to increase accessibility and demand of our coin,” said Mr. Sills.
The launch of the online site should allow Adama Technologies to expand its footprint into the e-commerce space thereby generating a significant amount of revenues. Adama Technologies Diversification Strategy A shift of focus to the cryptocurrency space is a strong pivot from the company’s former identity, which was Alpine Industries. The company specialized in precision machining and aerospace manufacturing. Its lead products included safety-critical aerospace landing gear as well as mine-clearing blades and hypo-chlorination units.In June, the company signed a Letter of Intent for the acquisition of two convenience stores and travel center locations from EZMart Food Stores. The two stores have the potential to generate more than $17 million in annual sales, which should go a long way in strengthening Adama Technologies free cash flows.The venture capital company also acquired Element 99 a multifaceted technology company that offers a wide range of user experience including an entrepreneur growth platform. The two acquisitions are part of the company’s diversification strategy that seeks to expand the current footprint into new areas of growth.
“These convenience stores are reliable revenue generators. The stability of those operations allows us to pursue a company like Element 99 that could transform the way people interact with the products they buy for years to come. It could change e-commerce as we know it. This diversified approach assures our longevity and still allows us to pursue these exciting technology concepts that can be very, very profitable,” said Mr. Sills.
Bottom LineAdama Technologies should continue to sprint higher as investors react to its push for growth opportunities in the digital currency space. The sector is just but starting with unique opportunities that the company can take advantage of, with its new e-commerce platform.The company’s diversification strategy on investments should be a perfect fit for investors looking to gain exposure to a good array of industries. That said, the stock remains well positioned for more gains if December’s solid performance is anything to go by.We will be updating our subscribers as soon as we know more. For the latest updates on ADAC, sign up below!Disclosure: We have no position in ADAC and have not been compensated for this article.
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