Bravatek Solutions Inc (OTCMKTS:BVTK) On The Comeback Trail

Amidst a major decline in the share price of Bravatek Solutions Inc (OTCMKTS:BVTK), management keeps pumping out beneficial announcements. In our opinion, the stock performance is not justified. The market is not taking into account the fact that BVTK has signed more than nine strategic alliances with other companies, which should lead to a future increase in revenues in 2018 and 2019. Taking into account these significant innovations, we believe that it is the right time for a new article.Before we provide our analysis, have a look at the price action in the stock charts below: 1 month chart for BVTK 1-month chart for BVTKWith the stock trading at the $0.0012 candle, a close below the $0.0010 mark should worry the shareholders. But, we don't see downside movements very likely since the stock is already trading at 52-week lows. Additionally, the recent stock volume of more than 150 million shares indicates that a rebound could be close. On the upside, the stock needs to close above the $0.0020 mark to affirm a change in the direction of the trend. If this happens, we expect market sentiments to strengthen. We will be monitoring these price levels, as they will determine the future stock performance in 2018.For starters, we are reviewing now what BVTK does to enhance shareholder value and grow. Bravatek Solutions, Inc. is a high technology security solutions provider, which assists corporate entities, governments, and individuals in protecting their organizations against errors besides physical and cyber attacks. It is headquartered in Austin, Texas, and was founded in 2007.The new AgreementsHonestly, the amount of agreements signed with other parties is overwhelming. We cannot provide details about all the contracts signed by the company. But, we will mention all of them so that our readers can execute further due diligence:

• On December 13, 2017, Bravatek Solutions, Inc. entered into a Strategic Alliance Agreement with Cobweb Security Ltd. The company will be paid sales commissions in the range of 15%-20% of project revenue for clients introduced by Bravatek.
• On December 21, 2017, the company signed a Joint Venture Agreement with DarkPulse Technologies, Inc., which was assessed in this article in InsiderFinancial.com.
• On December 21, 2017, BVTK signed a Joint Venture Agreement with The Go Eco Group.
• On December 13, 2017, Bravatek Solutions, Inc. entered into a Strategic Alliance Agreement with QBRICS, Inc. The company will be paid sales commissions in the range of 10%-20% of project revenue for clients introduced by Bravatek.
• On January 5, 2018, Bravatek Solutions, Inc. entered into a Strategic Alliance Agreement with AppGuard LLC. This company will pay sales commissions in the range of 10%-20% of project revenue for clients introduced by BVTK.
• On January 10, 2018, BVTK signed an agreement with Fazync LLC, under which it will also receive 10%-20% of project revenue for clients introduced by the company.
• On February 15, 2018, Bravatek Solutions, Inc. entered into a Strategic Alliance Agreement with IEVOLV Ventures, Inc. BVTK will be paid sales commissions in the range of 15%-20% of project net profit for clients introduced by Bravatek.
• On March 14, 2018, Bravatek Solutions, Inc. entered into a Strategic Alliance Agreement with OrangeHook, Inc.

What's our take?We believe that the market did not really have time to study each contract. According to most of them, BVTK will be making revenues by introducing new clients to the other party. For those who are not aware, the company is well known for having a significant amount of contracts with large enterprises. Thus, third parties are willing to contact BVTK to sell their products to its network of clients. In our opinion, the market is only taking into account the previous results, but not the potential revenues that these new agreements will create. To sum up, stay tuned for the next quarterly reports. Their release could lead to share price spikes.The acquisition of HelpCommThere is more. On January 12, 2018, the company signed an agreement to acquire HelpComm and the option to purchase 8760, LLC. This was interesting. First of all, with this acquisition, the company diversifies its activities and acquires a new business model that includes access to the 5G market. Dr. Thomas A. Cellucci, Bravatek’s Chairman and CEO, celebrated the deal with the following words:

“The team at HelpComm is concerned by most ‘the best in the business” because of its telecom construction and services. With a history of achievement of over 16 years—we are proud to have them join the Bravatek family of solutions. Much more than their multi-millions in revenue, HelpComm possesses significant assets to rapidly acquire more business across the country in a short time—to take advantage of the booming 5G market, as well as all the ancillary telecom-related applications.” Source

While the market celebrated the announcement by pushing up the share price, the upward trend stopped on January 15, 2018. In our opinion, the next financial accounts may show more information about this deal. If the market appreciates the value of the assets acquired, we could see a new rebound in the share price. This is another serious catalyst on BVTK to remember.The agreements with IEVOLV Ventures, Inc. and OrangeHook, Inc. are remarkableWe would like to offer more information about the deals signed with these two companies. In the first agreement, IEVOLV Ventures, Inc. and DP Telecom Inc., also called MAP Partners, which provides turnkey telecom services, will cross-promote Bravatek’s products and services. As usual, BVTK will make 15%-20% of the net profit for clients introduced by Bravatek. But, there is more. Bravatek will provide funding and will receive 20% interest, which is quite beneficial. Read the following:

"Pursuant to the Note, DP Telecom will repay Bravatek $200,000, plus $20,000 of interest, within 120 days of the Closing. Pursuant to the Security Agreement, DP Telecom’s obligations under the Note will be secured by a security interest in all of DP Telecom’s assets." Source

In addition, BVTK signed an agreement with OrangeHook, Inc., which provides identification authentication and credentialing software. BVTK will be paid sales commissions in the range of 10%-20% of project revenue for clients introduced by the company.ConclusionCurrently trading with a market cap of $10 million, BVTK is an exciting story among small caps. With $0.2 million in cash and returning revenues equal to $0.075 million in the quarter ended September 2018, the business is interesting. While the debt ratio is below 1x, we don't believe that the market will worry if the revenue line keeps increasing.To sum up, follow this name in 2018; it may surprise!Be sure to check out our coverage on BVTK!Disclosure: We have no position in BVTK and have not been compensated for this article.Image courtesy of The Kingsway School via Flickr.