ADVANCED DEFENSE (PINK:ADCF)
has made quite unpredictable moves during the past days. The stock has had sharp price
changes jumping from the top to the bottom of the chart, unable to hold the climb for long.
After a huge gain last Friday, yesterday ADT went back down again. However, it looks like the company is not ready to accept the defeat and started pumping up its stock by promotions. According to the records, yesterday ADT was promoted by Wall Streets Hottest Stocks, which called the stock a 100% bullish rising star, worth keeping an eye on. The campaign cost $15.000 to Quantum Consulting Group, Inc. and now everyone is waiting for the next move of ADT. Though, considering its price change, it can hardy be predicted.
Advanced Defense Technologies, Inc. develops new technologies for military defense, homeland security and commercial communications systems. Last week, the company reported it could compete in the worldwide communications hardware market by replacing the microwave dish and horn antennas in their current applications and this news brought ADT a huge gain. However, it didn't last long. In fact, the company tried to go higher last month, when it ensured a 7-day promotional campaign worth $35 thousand and another portion of optimistic news. However, none of these worked much better than the previous times. So, the question is, what's next now?
No matter if it is a new positive announcement or more promotions, ADT's market value totals $30 million, while its total assets are only $111K. In that case, the question is what's worth such a price? The answer remains unknown, apart from the fact that ADT has significant liabilities to cover. Actually, according to its latest financial report the company has a huge net loss and no revenues at all. Besides, ADT's management states that its cash and cash equivalents have been potentially exposing the company to "a concentration of credit risk". By end-September 2010, the company's cash equivalents pointed zero.