Specialty Contractors, Inc. (OTCMKTS:CIAU) Is A Rollercoaster Stock

Specialty Contractors, Inc. (OTCMKTS:CIAU), the technology and telecommunication services company, has seen its share price move a lot, as the market reacted to the announcement of its new Cryptographic Enterprise Division. What's the deal? The company is bringing liquidity to the $530 billion African market by using blockchain. The project is quite ambitious. Big groups, such as IBM, are doing similar moves on the continent. Have a look at the share price volatility and also note the rising volume.SourceCIAO GroupThe company is composed of Ciao Telecom, Inc., and NuMelo Technologies, Inc. On April 21, 2014, these two companies effected a share exchange agreement. However, the most relevant activities of the are group are undertaken by NuMelo.NuMelo TechnolgySourceNuMelo focuses on the development of technologies within the emerging, and frontier markets. Its business is explained in the company's website as follows:

"NuMelo brings the experience and resources to identify communication technology innovators within the worlds emerging and frontier markets and develop with them marketing and capitalization strategies to overcome the hurdles identified by the World Bank currently hindering the proliferation of emerging and frontier telecommunication services to achieve the corresponding alpha return potential. " Source

Recent DevelopmentsOn June 1, 2017, CIAU announced that it was launching a new new Cryptography Division to develop Blockchain and Bitcoin solutions. Also, the company noted that it is in the process of changing its business model and also changing its name to NuMelo Technology "as part of the business plan refresh". The market reacted to the news. The share price went from trading at $0.05 to touch the $0.20 level some days later. Have a look:SourceThe next announcement made on June 6, 2017 helped the share price move higher as well. It was communicated that Henryk Dabrowksi would be leading the Cryptographic Enterprises Division. Market participants celebrated his previous experience in the field. He led Alternet Systems, Inc. (USOTC: ALYI) "in the development and eventual cash sale of ALYI's subsidiary mobile financial transaction software company, Utiba Americas". Additionally, it was included in the press release that the division was headquartered "in the heart of Silicon Valley in San Jose".On June 15, 2017, the company released more information regarding its Blockchain project. It was noted that the target will be the the African continent, which has "$530 billion in public market capitalization across multiple national exchanges separate from the nearly $1 trillion in public market capitalization within South Africa alone".Why is the company targeting only this part of the globe? It was explained that investment capital is vital for any economy, and adding liquidity to poor economies could dramatically improve access. According to CIAU, the Blockchain could improve the technological feasibility of Frontier market public exchanges to support increased liquidity. Furthermore, the company explained a little more, and noted that African public stocks will benefit from the technology, and US investors will be able to profit from the growth in these countries:

"African public stocks from multiple African countries traded in a single Cryptocurrency on US trading platforms cleared through DTCC accepted Blockchain transactions could monumentally increase the liquidity of investments in African public companies, and give the average individual US investor new access to the extraordinary growth opportunities only found within Frontier markets." Source

Additionally, some other direct competitors were said to be planning to do the same:"IBM (NYSE: IBM) announced a Blockchain project earlier this year with the Depository Trust and Clearing Corporation (DTCC) based on the Linux hosted Hyperledger Open Source Technology."SourceFinally, on June 28, 2017, it put out the collaboration agreement with Hub Culture. Both companies will build "a secure digital financial products marketplace constructed on a blockchain backbone and linked to a digital asset service engine managed by Hub Culture". What is Hub Culture? It is a collaboration platform that has been running since 2002. It is also the creator of digital currency, 'Ven,' in 2007 and it is said to be an experienced developer of application used for digital currency worldwide. 500 million Ven are used everyday in the world economy.Market reaction and conclusionWe had a look at the chart price of CIAU and noted that the news had a direct effect on the price. Market participants made money by trading the news. On June 1, 15 and 28, 2017, the share price increased. What does it mean? It means that the market appreciated the new blockchain business that the company is developing. We expect that the company will continue issuing news about it. Thus, we encourage market participants to stay alert. Subscribe to our news release if you need rapid information and analysis. There's profits to be made trading CIAU.We will updating out subscribers as soon as we know more. For the latest updates on CIAU, sign up below!Image courtesy of Maria Guevara via FlickrDisclosure: We have no position in CIAU and have not been compensated for this article.