Why BVTK May Be Worth $$$ Soon We’ve all see
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Posted On: 07/19/2017 3:02:42 PM
Why BVTK May Be Worth $$$ Soon
We’ve all seen the hilarious poopy pants comments. We’ve all seen the dropped hints about equity investors, and billionaire friends, and the suggestion that we hold onto our seatbelts. But this is a pink sheet subpenny stock, so we discount it, massively. We trade for small percentage gains, and we are grateful to make that, rather than lose it all. Business as usual on the OTC.
But what if it isn’t business as usual? What if something massive really is coming to BVTK, and soon? How could it happen? And how soon?
On June 11, Tom made his ‘hold onto your seatbelts’ tweet, without explanation, and then didn’t appear to follow through. Subsequent inquiries from several sources have produced responses about lawyers, and stakeholders, and coming soon.
Meanwhile, we’re also waiting for financials. Which have also now been coming soon for a while, but which are, apparently, per several tweets from third parties, with the auditors.
The easy assumption is that Tom expected financials to be done already, and was expecting to release news soon thereafter, to make sure the company was current before news was released. That’s probably partly correct.
It’s also reasonable to assume that the final details of their contract negotiations are a little more involved and taking a little more time than he’s letting on. So it’s probably a little of one, and a little of the other.
It will happen when it happens.
But what kind of contract can suddenly produce such huge news and revenues that the CEO of a publicly held company would state that people will poop themselves?
The company has two basic lines of business:
1. Highly-secure email servers (and other related security software)
2. Telecom tower services
Item 1. The whitelist-only email server with always-on encryption and antivirus is a brilliant combination of technologies. But the company is waiting for customers to start buying. Some of those purchases may be huge (hello, they’re in discussions with the U.S. military, and at least a few F1000 companies), but they are also almost certainly not final yet. There’s a long demo, trial, and decision-making process for organizations of this size to acquire major software… and a replacement email server is very major indeed. It’s not the sort of thing that Tom can predict with 100% certainty either. That kind of decision takes *time*.
So what about Item 2?
Viking telecom was a relatively small organization until very recently. Then, this spring / summer, they hired a rockstar project manager, and signed funding/profit allocation agreements with an additional 2 companies in virtually the same business. If you read the description of those agreements, it makes the companies very nearly subsidiaries. Independent, still, but contractually bound to allocate most of their revenue to Bravatek/Viking, while Bravatek/Viking provides funding and manages the difficult task of getting projects.
Revenues are projected to be at least a few million for each deal, per annum.
I believe this is the seed, and foreshadows, a much larger version of the same business model that is about to be revealed.
Bear in mind that Tom has been tweeting for over a month about his multiple meetings with high-dollar equity investors. What on earth for? He doesn’t need high dollar equity investors for the email server part of the business. That has already been developed, and is just starting to get major customer interest. It will sell without millions in equity infusions.
Likewise, we’re all excited about the hints Tom has dropped about being on NASDAQ sooner than we expect, and his billionaire friend and investment funds, etc. Some assume that the high-net-worth individuals are going to buy up shares on the open market, themselves; others understand that this wouldn’t require negotiations with the company, and doesn’t provide the company any cash for future projects. No, the equity investors will expect either preferred or restricted shares for their investment, and they won’t provide the cash for growth or a buyback out of charity; they expect a major return on their investment. And not just a return due to a buyback using their cash. If they wanted to run up the stock price they could damn well do that themselves. Probably any one of them could run up the stock price to 10 cents in a matter of days if they really wanted.
So what kind of major return on investment can a company with a small telecom tower service operation provide to gigantic equity investors?
Simple: they buy into a MAJOR telecom tower service operation (or perhaps two, given Tom’s communications about there being two major deals now) using the equity investors’s money, and the know-how and familiarity of their existing telecom services staff. These major tower service operations will already have major revenue, but might be regionally constrained, or might not have the cash to outcompete or acquire their larger competitors.
Enter a public company with a large group of equity investors looking over its shoulders. They can make acquisitions, or provide funding for expansion, and do it all secure in the knowledge that they will make money because the companies they are acquiring are ALREADY making money. And I wouldn't be surprised if the deal is very similar to the ones we've already seen, funding, projects, and organization in exchange for majority revenue share.
How so?
Let’s take a moment for a brief introduction to one aspect of the telecom tower industry: collocation service companies.
A long time ago, in a galaxy far, far away, telecom companies all built and operated their own towers. (Or contracted companies to put the towers up for them.) But that quickly revealed itself to be expensive and inefficient. It takes time and money to put up a tower. And if each company is putting up its own towers, then there may be almost half a dozen towers covering the same area, when all that is needed is one, with ALL the telecom company’s equipment up on it.
So the business rapidly changed. The telecom companies started selling the towers, and leasing back the space on them to locate their telecom equipment. Thus the term ‘collocation’. The collocation company builds / owns / maintains the towers, and leases the space on the towers to the telecom company. Maybe they also perform equipment maintenance and upgrades. Or maybe they hire subcontractors like Viking to do the actual equipment maintenance, and upgrades. Their choice.
Meanwhile, the major wireless telecom company bills wireless customers, manages the network, and pays their subcontractors and collocation companies regularly to keep their towers operational. The cost of the lease becomes a clear business expense, meaning it can probably be deducted from federal taxable revenues.
Consider this tweet:
Quote:
BVTK negotiating JV agreement for large stake in Telecom site ownership/ operations worth significant multiple of announced Telecom services
We’ve all seen the hilarious poopy pants comments. We’ve all seen the dropped hints about equity investors, and billionaire friends, and the suggestion that we hold onto our seatbelts. But this is a pink sheet subpenny stock, so we discount it, massively. We trade for small percentage gains, and we are grateful to make that, rather than lose it all. Business as usual on the OTC.
But what if it isn’t business as usual? What if something massive really is coming to BVTK, and soon? How could it happen? And how soon?
On June 11, Tom made his ‘hold onto your seatbelts’ tweet, without explanation, and then didn’t appear to follow through. Subsequent inquiries from several sources have produced responses about lawyers, and stakeholders, and coming soon.
Meanwhile, we’re also waiting for financials. Which have also now been coming soon for a while, but which are, apparently, per several tweets from third parties, with the auditors.
The easy assumption is that Tom expected financials to be done already, and was expecting to release news soon thereafter, to make sure the company was current before news was released. That’s probably partly correct.
It’s also reasonable to assume that the final details of their contract negotiations are a little more involved and taking a little more time than he’s letting on. So it’s probably a little of one, and a little of the other.
It will happen when it happens.
But what kind of contract can suddenly produce such huge news and revenues that the CEO of a publicly held company would state that people will poop themselves?
The company has two basic lines of business:
1. Highly-secure email servers (and other related security software)
2. Telecom tower services
Item 1. The whitelist-only email server with always-on encryption and antivirus is a brilliant combination of technologies. But the company is waiting for customers to start buying. Some of those purchases may be huge (hello, they’re in discussions with the U.S. military, and at least a few F1000 companies), but they are also almost certainly not final yet. There’s a long demo, trial, and decision-making process for organizations of this size to acquire major software… and a replacement email server is very major indeed. It’s not the sort of thing that Tom can predict with 100% certainty either. That kind of decision takes *time*.
So what about Item 2?
Viking telecom was a relatively small organization until very recently. Then, this spring / summer, they hired a rockstar project manager, and signed funding/profit allocation agreements with an additional 2 companies in virtually the same business. If you read the description of those agreements, it makes the companies very nearly subsidiaries. Independent, still, but contractually bound to allocate most of their revenue to Bravatek/Viking, while Bravatek/Viking provides funding and manages the difficult task of getting projects.
Revenues are projected to be at least a few million for each deal, per annum.
I believe this is the seed, and foreshadows, a much larger version of the same business model that is about to be revealed.
Bear in mind that Tom has been tweeting for over a month about his multiple meetings with high-dollar equity investors. What on earth for? He doesn’t need high dollar equity investors for the email server part of the business. That has already been developed, and is just starting to get major customer interest. It will sell without millions in equity infusions.
Likewise, we’re all excited about the hints Tom has dropped about being on NASDAQ sooner than we expect, and his billionaire friend and investment funds, etc. Some assume that the high-net-worth individuals are going to buy up shares on the open market, themselves; others understand that this wouldn’t require negotiations with the company, and doesn’t provide the company any cash for future projects. No, the equity investors will expect either preferred or restricted shares for their investment, and they won’t provide the cash for growth or a buyback out of charity; they expect a major return on their investment. And not just a return due to a buyback using their cash. If they wanted to run up the stock price they could damn well do that themselves. Probably any one of them could run up the stock price to 10 cents in a matter of days if they really wanted.
So what kind of major return on investment can a company with a small telecom tower service operation provide to gigantic equity investors?
Simple: they buy into a MAJOR telecom tower service operation (or perhaps two, given Tom’s communications about there being two major deals now) using the equity investors’s money, and the know-how and familiarity of their existing telecom services staff. These major tower service operations will already have major revenue, but might be regionally constrained, or might not have the cash to outcompete or acquire their larger competitors.
Enter a public company with a large group of equity investors looking over its shoulders. They can make acquisitions, or provide funding for expansion, and do it all secure in the knowledge that they will make money because the companies they are acquiring are ALREADY making money. And I wouldn't be surprised if the deal is very similar to the ones we've already seen, funding, projects, and organization in exchange for majority revenue share.
How so?
Let’s take a moment for a brief introduction to one aspect of the telecom tower industry: collocation service companies.
A long time ago, in a galaxy far, far away, telecom companies all built and operated their own towers. (Or contracted companies to put the towers up for them.) But that quickly revealed itself to be expensive and inefficient. It takes time and money to put up a tower. And if each company is putting up its own towers, then there may be almost half a dozen towers covering the same area, when all that is needed is one, with ALL the telecom company’s equipment up on it.
So the business rapidly changed. The telecom companies started selling the towers, and leasing back the space on them to locate their telecom equipment. Thus the term ‘collocation’. The collocation company builds / owns / maintains the towers, and leases the space on the towers to the telecom company. Maybe they also perform equipment maintenance and upgrades. Or maybe they hire subcontractors like Viking to do the actual equipment maintenance, and upgrades. Their choice.
Meanwhile, the major wireless telecom company bills wireless customers, manages the network, and pays their subcontractors and collocation companies regularly to keep their towers operational. The cost of the lease becomes a clear business expense, meaning it can probably be deducted from federal taxable revenues.
Consider this tweet:
Quote:
BVTK negotiating JV agreement for large stake in Telecom site ownership/ operations worth significant multiple of announced Telecom services
(3)
(0)Bravatek Solutions, Inc. (BVTK) Stock Research Links
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