ADVANCED DEFENSE (OTCMKTS:ADCF) Flips Overnight
The pink sheet tier of the OTC markets is not a place where you buy a ton of stock and let it age like a fine wine. Yesterday Advanced Defense Technologies Inc (OTCMKTS:ADCF) sank 28% and wiped the huge chart spike from Tuesday in half. The stock slid back down to half a cent per share, with volume remaining heavy, at nearly 15 million shares traded.
ADCF has been around for an awfully long while for an entity which still has not generated any revenues from operations, except for “nominal amounts”. The company’s latest quarterly report went up a few days ago, even though the company is still stamped with the red Pink Limited Information sign on OTC Markets. The figures contained in the report that went live on Monday were nothing short of dire:
- $377 (three hundred and seventy-seven dollars) in cash, comprising total current assets
- $358 thousand in current liabilities
- ZERO in revenues
- $451 thousand in net loss for Jan – Jun 2015
Those hair-raising numbers did not stop investors from gobbling up over 20 million ADCF shares in Tuesday. The only discernible reason for that sudden spike in interest is a single sentence in the quarterly report. The bit in question reads that ADCF “anticipates” the company will secure its first product development contract within calendar 2015.
It seems as though more people need to read up on the meaning of “forward looking statements” and anything that has the words “believe”, “anticipate”, “expect” and derivatives in front of it. Even reading the said paragraph in full would do the job, as the company explains “there is no assurance” the company will successfully commercialize its products or make revenues from them.
The last time ADCF came up with an official press release was back in April 2015, announcing a “continued discussion towards a Statement of Work”. Judging by this latest quarterly, there was not much work done. We will be keeping an eye out for any news from the company and the possibility of an actual contract materializing.
