NanoTech Entertainment, Inc. (OTCMKTS:NTEK) Is Still Unpredictable

After being targeted by paid promoters, showing us financial statements that looked less than impressive and a host of other factors that turned the stock into a nail-biting, white-knuckle ride, NanoTech Entertainment, Inc. (OTCMKTS:NTEK) filed their annual report for the period ended June 30 on August 14. Most of the shareholders saw the document, had a look at the figures and probably breathed a sigh of relief thinking that the ticker will finally calm down a little bit. Has it worked though?

Well, the prerequisites are there – the financial statement shows that NTEK have made quite a lot of progress over the last few months. The working capital deficit has been dealt with, the revenues have been given a massive boost and the second calendar quarter of 2013 turned out to be the first reported period ending with a net income.

The PR department has also been hard at work issuing press release after press release, each more exciting than the last. New facilities were opened, an interview with rock legends, Metallica was streamed live through NTEK‘s NanoFlix and a host of other developments happened within an extremely short period of time.

In addition to this, judging by the message boards, NTEK do have an extremely loyal shareholder base which should suggest a steady stock performance. All in all, it looks like one of the few tickers in Pennyland that could offer solid long-term potential.

Yet, the share price seems somehow reluctant to show it. At first, things looked good when seven green sessions gave the ticker a boost and made it run from $0.058 all the way to $0.092 at the end of August. The inevitable corrections followed, but just when it was showing signs of recovery and testing the $0.10 per share barrier, Quality Stocks tried to ruin it for everybody. Predictably, NTEK showed some more signs of hesitation but, last week, it seemed like it was ready for a true breakout.

Monday started on a negative note, but both the volume and the price movement were negligible. Tuesday, Wednesday and Thursday, however, were quite different. The number of shares changing hands stood firmly above the 10 million mark and the ticker had absolutely no problem smashing through the $0.10 barrier. Friday wasn’t as glamorous. NTEK gapped up at the open but started sliding down almost immediately. By the end of the day, around 10.4 million shares had changed hands resulting in around 12% in losses. Sure, it’s not the most horrific crash ever seen, but the roller coaster-like movement seems somewhat odd considering the upside potential found in the recent filings and press releases.

On the bright side, we finally manage to find the deadline for the first shipments of the Nuvola NP-1 – the revolutionary 4K streaming device that NTEK have been talking about for quite a while. The first orders should be served before the end of the year. As we mentioned in some of our previous articles, one product of the Nuvola family is already being sold to customers all over the world, but it’s the NP-H1 – a set-top computer. With the NP-1 streaming media player, they are supposed to really crush the competition.

We’ll be sure to check on them regularly and report if they have managed to stick to their plans, but in the meantime, you should not ignore the fact that, although NTEK is showing signs of progress rarely seen in Pennyland, the company is still a small cap enterprise quoted on the OTC Markets. This means that the stock is volatile and fluctuations in the price are to be expected. A potential investment still hides its risks and considering them carefully is crucial before putting your hard-earned cash in the ticker.

And while NTEK was sliding during Friday’s session, another penny stock showing a relatively strong balance sheet (for a small cap venture), Solar Power, Inc. (OTCMKTS:SOPW) jumped unexpectedly by 33% closing the week at $0.25 per share. Cloud Security Corp (OTCBB:CLDS), on the other hand, barely moved from its position of around $0.80. The dollar volume, however, amounted to no less than $475 thousand and the fact that paper mailer brochures are currently flying around suggests that the next few sessions will be quite exciting.