Can NanoTech Entertainment, Inc. (OTCMKTS:NTEK) Handle The Pressure?

There’s been quite a lot of commotion around NanoTech Entertainment, Inc. (OTCMKTS:NTEK) recently and it’s definitely having an effect on the stock. Friday’s session ended with a further 33% gained which means that the ticker closed June at $0.064 per share. By contrast at the beginning of last month it was hovering around $0.013 and what’s even more astounding, out of the nineteen trading sessions during June, only five ended in the red with the biggest single-day losses amounting to just 8%.

All in all, it was a good month for NTEK but the question on everyone’s mind right now is: “What about the future?”. The chart shows pretty clearly that people currently have their trust in the company, the management team and the products they are marketing. When we read through the message boards, we can see that even comparisons with companies like Apple Inc. (NASDAQ:AAPL) are not uncommon, and while at this point, they do seem like a bit of a stretch, NTEK have indeed been displaying progress rarely seen among small cap ventures. The most impressive part of their latest financial statement is the revenues section. We reckon that this is what got investors most excited and having in mind that NTEK have managed to generate over $250 thousand in sales for the first quarter of 2013 when compared to $0 for the same period of 2012, a round of applause is definitely in order.

That said, things are not all rosy. The expenses incurred during the first three months of 2013 are still quite a lot bigger than the proceeds which means that the period ended with a total loss of around $230 thousand. They also had a working capital deficit of around $1.3 million. In this sense NTEK are a typical small cap venture with signs of potential growth.

Just like Jammin Java Corp (OTCMKTS:JAMN) – another OTC ticker that has been showing some respectable progress and yet, they finished June with a red session despite the optimistic 10-Q. The same goes for Fuse Science, Inc (OTCMKTS:DROP) (we talked about them earlier today). They have also presented some exciting news and projections and unlike other penny stocks, the reports serve as proof for their progress. Yet, the ticker is getting nearer a new 52-week low.

So, what will stop NTEK from slumbering down just like JAMN and DROP? Well, as we mentioned, they seem to have the support of their shareholders to help them and currently, quite a lot of people are featuring the ticker in “Hot Penny Stocks” lists.

We also talked about 007 Stock Chat’s promotion on NTEK and so far, the awareness campaign seems to be having a positive effect on the ticker. That said, as you all know, sharp corrections are always possible.

In addition to this a press release that came out about a hour ago informs us about a report that an entity called “Small Cap Specialists, LLC” (SCS) did on NTEK. SCS (who also own a newsletter called OTCBBJournal) have done similar reports in the past for Amarantus Bioscience Holdings, Inc. (OTCBB:AMBS) and Gdt Tek Inc (OTCMKTS:GDTK) and, naturally enough, they are only too happy to tell us about the profits that people who trusted them made on these two alerts. The only problem is, as you can see from the charts on the right, the long-term performance was rather disappointing.

Whether NTEK is about to follow in their footsteps remains to be seen, but we reckon that the risks are still pretty much there, which is why a lot of research and due diligence is definitely a good call before making any investment decisions.