NanoTech Entertainment, Inc. (OTCMKTS:NTEK) Comes Crashing Down

NanoTech Entertainment, Inc. (OTCMKTS:NTEK) hadn’t seen a session of heavy trading for months on end before last Friday rolled along. Unfortunately for investors wanting to make money riding the ticker up the charts, they were given very few opportunities to do so in that session. So what’s happening?

Well, last Thursday the ticker soared on the anticipation that news, as well as an update on company affairs will be released the very next day. NTEK gained 26% on account of that, in spite of the low dollar volume. Shareholders probably saw this as the right moment to make a profit out of trading NTEK, and as a result of their increased selling activity that followed the very same day, the ticker lost all the gains that it had made in the previous session and failed to regain it once more.

Still, it is hardly surprising that the ticker crashed as hard as it did – after all, its newest press release and filing, that hit the web on the same day contained nothing of value. Thus, investors that were hoping to capitalize on the hype those two thing caused ended up empty handed.

Well, that’s one plausible theory about what happened yesterday. Another would be that the PR actually did its job of arousing the investors’ interest and that was exactly what the people holding that $1.4 million worth of mystery convertible notes (mentioned in NTEK‘s newest 10-K) were waiting for. A fresh PR could be the green light that they were waiting for all along, in order to transform their debt into shares at who knows what horrendous discounts and then proceed to dump it on the market.

That second theory seems quite plausible as well, especially seeing as how NTEK had been the target of paid pumps just a few months ago. Unfortunately, since NTEK is a pinksheets company, and thus not too keen on filing reports about that sort of thing, we may never know if this was the case.

However, investors should really take such possibilities into consideration when making up their minds about investing in NTEK.