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Bravatek Solutions Inc (OTCMKTS:BVTK) Is A Top Cybersecurity Play

Bravatek Solutions Inc (OTCMKTS:BVTK) Is A Top Cybersecurity Play
Written by
Jarrod Wesson
Published on
July 11, 2017
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Bravatek Solutions Inc (OTCMKTS:BVTK) keeps releasing interesting news to the market about its Message Handling System: Ecrypt One. Just recently, the market got to know that BVTK is negotiating a contract with a Fortune 2000 IT firm to sell the exclusive rights for Ecrypt One. The agreement would include the right to sell it in the United States as well as to 29 NATO countries. We believe that the deal may be an impressive catalyst. Thus, we will explain further in this piece.SourceHave a look at the most recent market reaction, and note how the volume started to jump in April 2017.SourceProduct What is Ecrypt One? Watch the following video about the software:https://youtu.be/U3HR1e4gu5kIn one of our articles, we noted the demand of this type of software in the following way:

"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." Source

What's the cyber security industry doing?Recent attacks from hackers are creating huge demand for cyber security software, such as Ecrypt One. The market obviously reacted to this demand and pushed up cybersecurity stocks this year. The same market reaction that we saw in case of BVTK is also happening in other stocks.The attack to Mondelez International, which may have serious damage to its revenue growth, is a very recent example. CNBC explained the rally with the following words:

"Cybersecurity stocks like FireEye, Barracuda, Symantec and Palo Alto Networks rallied Friday, as snack food and beverage giant Mondelez International became the latest victim of a cyber attack. The company said it was hit with an attack on June 27 that compromised its ability to ship and send invoices during the last four days of its second quarter. What made this call unusual is that the company quantified exactly how much the attack hurt them: Its preliminary estimate of the impact indicates a 3 percent slice off its revenue growth rate for the quarter." Source

Mondelez International could have used Ecrypt One as an alternative to send invoices. That's the rationale that the market is using to push up the share price of this stock and others. The demand is rising, because the issue is becoming more important. The market expects this demand to create future revenues, thus market participants are buying before the next revenue is released.Recent DevelopmentsOn July 10, 2017, the market got to know that BVTK was negotiating a deal with a large IT firm, which is interested in the company's software. This Fortune 2000 seems to be interested in an "exclusive distribution rights to use, sell, as well as market Ecrypt One".But, who is this player, and why is it so interested? Due to confidentiality matters, the name is unknown. We know that it provides services to military markets, government agencies as well as to state and local entities, which means that it is quite serious partner. Additionally, the business plan was partially disclosed. The plan is to "retrofit Ecrypt One into an existing software solution". This is what was said by an engineer, who asked for anonymity:

"This is exactly what we needed to bring a complete cyber solution to our existing client base of all military personnel in the US alone" Source

The following information about the pending project was also included in the press release:

"The goal is to integrate ECRYPT ONE into the company's own software solution, add email services and improve its ability to fend off virus-, spam-, mal-ware- and phishing-attacks for its users, capable of supporting military operations worldwide." Source

That's not all. It was noted that yearly revenues of Bravatek are estimated conservatively in excess of $2.5M per year. If the deal is finally signed, market participants may expect the share price to react to the announcement. We encourage email subscribers to be alert, as we will quickly inform about any deal.On July 6, 2017, the market also got to know that the Company's tower services “group-Viking Telecom” received $630,000 in purchase orders and $400,000 "in-process" commitments. Its strategic alliance with HelpComm, LLC, is really working out. In addition, the company said that it is in the final stages of negotiating with other major wireless carriers. A new joint venture agreement may be signed soon "in the very near future". Again, it is another very serious catalyst that may push up the share price even more.Finally, on June 29, 2017, BVTK also announced the launch of new pilot programs with 3 Fortune 1000 companies in the fields of Healthcare, IT services, and Aerospace/Defense. Mr. Jim Brown, Senior Vice President of Sales, is working with them. It is a pity that we cannot know the names of the companies. We expect that BVTK is able to say who are some of its clients. The market may push up the share price even higher depending on their names, and financial power.ConclusionBVTK's product seems not only revolutionary. It is the right time to profit from the increase of hackers attacks. We could see that other cyber security stocks are profiting from such events every time. Market participants may follow the attacks, as BVTK common stock and the whole industry move with them. Furthermore, we reviewed the announcements put out and saw that BVTK may sign an exclusive distribution agreement with a big IT player. The companies are still negotiating the deal, thus stay alert, as the agreement may come out soon. Additionally, we saw some other agreements with unknown, but big players, which we appreciate. The revenue line may increase in the near future. To sum up, follow this stock, as it is delivering good returns and looks set to continue doing so.Get the full story: Check out our coverage on BVTKWe will be updating our subscribers as soon as we know more. For the latest updates on BVTK, sign up below!Image courtesy of Robosapiens Technologies via FlickrDisclosure: We have no position in BVTK and have not been compensated for this article.

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