New Energy Technologies, Inc. (OTCMKTS:NENE) Still A Volatile Choice

NENEchart1.pngAlthough New Energy Technologies, Inc. (OTCMKTS:NENE) are among the pennystokcs with more stable financials and they certainly possess potential for growth their stock performance has been extremely volatile. From mid-October to mid-November they managed to run from $2 per share to more than $3.3, just to wipe it all out in one disastrous session. Since then the stock has been fluctuating a lot and yesterday it once again dropped down to close at $2.38, or 5% lower.

Still despite being a development stage company that is not generating any revenues NENE are maintain a price per share of above 2 dollars. This can be attributed to both the low level of indebtedness and the promising product they are developing. Three weeks ago the company filed its annual report for the fiscal year ending August 31 and in it they revealed the following results:

  • $347 thousand cash
  • $519 thousand total current assets
  • $122 thousand total current liabilities
  • zero revenue
  • $4.2 million net loss

It is clear the their cash reserves are nearly not enough for the completion of their SolarWindow technology and its subsequent commercialization. That is why in October they entered into a $3 million loan agreement with Kalen Capital Corporation that according to the management is going to cover all their expenses for the next fiscal year.

Investors are strongly advised to do their own due diligence on the company as profitability and even revenue generation are still quite away. Also keep in mind the possible dilution of their common stock as the recent loan agreement featured the issuance of warrants with a price considerably lower then the current share price. 

Yesterday the $1 million pump for Endeavor IP Inc (OTCBB:ENIP) reminded the market about itself after another email alert 6ENIPchart.pngwas sent by 900 Percent Stocks. This pushed the stock another 17% up to a close of 71 cents per share. The $2.5 million pump for the stock of Tiger Oil and Energy, Inc. (OTCMKTS:TGRO) managed a small recovery of 6% after two consecutive sessions in the red.

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