NanoTech Entertainment, Inc. (OTCMKTS:NTEK) on a Mystery Run

Over the last three sessions, the stock of NanoTech Entertainment, Inc. (OTCMKTS:NTEK) shot up and climbed in leaps and bounds. The company’s share price put on 70% within less than a week – an admirable feat, considering its recent chart movement and performance. NTEK closed 25% up yesterday, stopping at $0.0215, on increased volume of 31 million shares.

This sudden excursion up the charts must have been a pleasant surprise for shareholders. However, there was practically no reason or trigger for a move that big. NTEK has not put up any new PR since April 28 and that last release concerned the acquisition of a mobile developer. In our last article we looked at that acquisition, the questionable merits of the acquired entity considering its product portfolio and the 5% drop NTEK suffered right after the announcement.

Since then there have been no new filings and no new PR coming from the company. What then inspired traders to buy NTEK 70% up the chart in the space of just three sessions? That is a question which can hardly be answered by anyone but the people who purchased those millions of shares over the last handful of sessions.

NTEK‘s latest filing is a quarterly report for the three months ended December 2014. This lists that the company had 740,000,000 authorized shares as of December 31. Of those 724 million were issued and outstanding. However, the next quarterly filing that is due next week may surprise some investors. A check up on the Nevada Secretary of State website shows that NTEK currently has 990,000,000 authorized shares and that amount was raised in March. How much of the gap between 740 and 900 million has been filled up so far and just how much did NTEK dilute shareholders again? Hard to tell precisely but the report will be out soon enough.

Until then, investors are left hoping there won’t be too much selling into the new price surge and that the new quarterly will at least show revenue growth.