NanoTech Entertainment, Inc. (OTCMKTS:NTEK) With More News And More Losses
Last week was absolutely horrid for the people who have some money invested in NanoTech Entertainment, Inc. (OTCMKTS:NTEK). It started off well on Monday when the ticker added around 20% to its value but that turned out to be the last green session registered for them. There was a 13% correction on Tuesday and shortly after the end of the session the pumpers came along. Instead of reversing the tides, however, the ticker slid even further down. The daily losses amounted to 9% on Wednesday and 13% on Thursday, but without a doubt, the biggest massacre was witnessed on Friday when the trading volume amounted to around 30 million shares which resulted in a fifth of the value gone in just six and a half hours of trading.
This means that after just four rather horrendous sessions, NTEK‘s shares are around 45% cheaper. Not the kind of solid performance everyone was expecting, but the real question is “What caused the sudden drop?”.
Well, it would appear that the news coming out of NTEK‘s headquarters was good. Around noon on Thursday they announced that their 4K Ultra HD media player will be featuring state-of-the-art hardware and they presented the new website through which it can be pre-ordered. Then, on Wednesday, they said that the acquisition of a Tampa-based ice sculpting company called Clear Memories, Inc. (CM) has been completed. We talked at length in our previous article about the fact that although the business of making beautiful forms out of frozen water is probably quite distant from what NTEK and their shareholders are normally used to, CM is quoted as a profitable company and that, along with their clever proprietary technology, should be enough to boost investor confidence. Clearly, it wasn’t.
With that in mind, keeping quiet for a while and letting the ticker “cool off” for a little bit is probably what the shareholders were expecting, but they were surprised to find out that NTEK sacrificed their Saturday to make an announcement about their next acquisition. The new subsidiary is called Magic Screen 3D, it’s based in Los Gatos, California and they are supposedly developing a new type of 3D technology with which you can experience 3D movies without putting on those uncomfortable glasses. Again, a new daughter company with a new, innovative business plan should normally mean good news for the future of NTEK, but having seen the stock performance from last week, it could also mean another crash. That said, the press releases weren’t the only things drawing investors’ attention to NTEK.
As we already mentioned around ten promotional emails hit our inbox during last week alone and the trading volumes are pretty indicative that they did achieve the effect of increasing the demand for NTEK stock. That, on the other hand could mean that someone holding a large number of shares opted to get rid of his/her holdings while the price was still high and in doing so, put an end to the impressive run that the ticker has been making over the last two months.
What are the chances of recovery? Unfortunately, at this point, nobody can be sure of that. The optimistic news from Saturday might give the ticker a nudge in the right direction or there could be more selling of stock resulting in even further drops.
One thing is for sure: the repetitive pumping action around the ticker and the erratic stock performance under the promotional pressure could scare some of the investors away. That’s why putting some effort into staying away from such campaigns in the future might not be a bad call. If NTEK don’t do that, shareholders could also start to lose faith very quickly. If that happens, the chart might look like the one for Primco Management Inc (OTCBB:PMCM) very soon which is why considering all the risks carefully and doing a lot of due diligence is absolutely crucial before making any investment decisions.
