Our readers should remember well our coverage on Bravatek Solutions Inc. (OTCMKTS:BVTK). We have talked about this high technology security solutions provider for months, and the stock returns have been extraordinary. We don’t know whether the market is pushing up the share price because many are demanding the company’s software against cyber-attacks or the industry is just booming.
In any case, have a look at the share price action in 2017 and note the increasing amount of shares that changed hands:
In this article, we will not be talking about BVTK, which we know well. We will be assessing another holding company called The Go Eco Group Inc. (OTC PINK:LIBE), formerly Liberated Energy, Inc.
Because it has recently signed a joint venture with BVTK. The companies recently announced that they would develop together a proprietary secure communications software for LIBE’s flagship product, the Guard Lite. The reaction of the market was similar to what we have seen many times in Bravatek’s stock chart. Thus, we rapidly decided to inform our readers. Check out the recent share price action and also note a large number of shares exchanged; more than 2 million shares some days:
LIBE and its primary product “the Guard Lite”
LIBE is a Nevada corporation formed on September 14, 2011. It is presented as a diversified energy service holding company delivering conventional as well as non-conventional energy solutions throughout North America. The mission of the group is to bring energy products and services at a lower cost to its clients.
The most exciting product is the Guard Lite, a hybrid lighting and security system that can be installed at any location without wiring or an electrical permit. Guard Lite is a complete solution for those looking for security and also interested in the use of alternative energy.
The most innovative feature is that the Guard Lite can deter an intruder before he has entered the premises. It is, therefore, better than other systems that we have assessed, which send an alert only when an intruder has entered a house. But, that’s not all. Thanks to the camera’s infrared capabilities, the system can detect individuals in day and night. As a result of this high technology, it was said that a homeowner might enjoy up to 20% discount on his or her insurance.
In our opinion, the following are the most interesting devices included in the Guard-Lite package:
“- High Tech LED lighting – Utilizing the latest energy efficient technology with 6000°Kelvin lamps and 60,000 hrs+ lifetime.
– HD WiFI Security Camera – Featuring two way streaming audio and HD video.
– Wind Turbine – High Efficiency Carbon Fiber Plastic. This unit produces 300 watts at low wind speed.
– Solar Panel – 100 watt output at 4.5 KWh/Day.” Source
How will BVTK help the company?
Thanks to BVTK, the company will be able to provide a secure internet access point to each Guard Lite and permit that multiple Guard Lights can communicate with each other. Brian Conway, CEO of LIBE, explained the new development with the following words:
“We envision the Guard Lite to be the first 100% off the grid, solar and wind powered LED lighting and Wi-Fi security product that can also allow secure internet access within an unspecified radius. Through this partnership, we will have the level of security necessary to market to Government and municipalities in the upcoming months.” Source
There is something else to remark.
The video recorded by the camera will be saved on a proprietary blockchain that allows the transfer of encrypted video. In this way, nobody will be able to capture an image from the system.
What’s our take? We believe that it is a great technological innovation that will be appreciated by clients. In our opinion, protecting against cyber-hackers should be a top priority for companies like LIBE. If hackers can enter into the security systems of the U.S. Government, they should be able to hack our home systems. Thus, we must reinforce our operations against them.
Additionally, there is something that only our readers and BVTK shareholders will know, which will benefit LIBE. BVTK is said to have a vast network of prominent clients and an extensive sales distribution network. We believe that it will help LIBE enhance its revenues. Hence, be sure to check the next quarterly earnings result. It may surprise.
LIBE has leverage
LIBE’s financial position is highly leveraged. In the last balance sheet reported for the period ended June 30, 2017, an amount of $0.9 million was reported as long-term debt.
What does it mean?
It means that if LIBE’s share price commences moving as BVTK did in 2017, it could be much more volatile. It could increase much more and also fall much more. Our readers should know from their accounting lessons that debt multiplies the revenues as well as the financial risk. Thus, if we are looking to get market exposure to BVTK, LIBE may be an exciting option for volatility lovers.
Regarding the income statement, we could read that the company commenced receiving revenues in the last quarter. It showed $0.048 million in revenues, $0.038 million in gross profit, and a net income of -$0.026 million. We appreciate the positive news and need to note that the negative net income is quite usual in startups. The most significant expenses were the sales and general expenses of $0.041 million. They were responsible for the loss. In our opinion, once the company finally develops its products, these costs could be reduced, and profits should arise. Thus, we see no problem in the P&L.
Currently trading with a market cap of $0.2 million, LIBE is an exciting story among small caps. With a total amount of 14,468,303 outstanding shares, we also know that the company’s low float is reduced, which may increase the share price volatility even more.
To sum up, check LIBE if you are looking for an adrenaline ride; it could be better than what it was seen in BVTK in 2017.
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Disclosure: We have no position in LIBE and have not been compensated for this article.
Image courtesy of Mark Hunter via Flickr