Advanced Defense (OTCMKTS:ADCF)’s Rumor Mill Roars to Life

Advanced Defense (OTCMKTS:ADCF)’s management team said in their latest report that they expect to have the first development contract before the end of 2015.

They also said that their company “is in a favorable position to commence generating sustainable revenues”, but quite frankly, we’re not sure what they’re on about with this particular statement. Despite being around for a very long while, ADCF has yet to generate its first sale and nothing about the balance sheet recorded at the end of Q3 suggests that it’s anywhere near ready to do that.

Here’s a summary of the most important figures:

• current assets: $377 in cash
• current liabilities: $358,773
• nine-month net loss: $451,362

Apparently, the OTC Markets are not particularly happy with ADCF‘s filings as they are today. Indeed, the figures you see above are relatively recent, but despite this, ADCF got its Limited Information stamp earlier today.

Despite this and despite the fact that the woeful figures you see above saw the light of day not more than forty-eight hours ago, the stock is flying high. Yesterday, it shot up and gained as much as 158% which brought it to its highest close in over a year and a half of $0.008 per share. And what is the reason for this remarkable achievement?

Well, it has to do with the statement that we discussed in our first paragraph. Some people read it and decided that this means imminent news and a guaranteed run in the right direction for ADCF. Then, these people took it upon themselves to flood the message boards and social networks with optimistic promises and projections. If Twitter is anything to go by, a curiously high number of the ADCF supporters who think about the greater good of all investors seem to be Russian and most of them admit that the whole thing is more rumor than anything else at the moment.

In any case, if the management team’s estimates are correct, we should soon see some exciting press releases. Don’t forget, however, that exciting press releases aren’t always enough.

In April, for example, ADCF announced that there are discussions with an unnamed “global leader in the technology enhancement, manufacturing and testing of sophisticated antenna systems”. It’s painfully obvious that these “discussions” haven’t really had an effect on ADCF‘s financials and we can’t help but wonder why the management team has said nothing about them over the last six months.