NanoTech Entertainments, Inc. (OTCMKTS:NTEK) Regain Friday’s Loss

If you have followed our articles about NanoTech Entertainments, Inc. (OTCMKTS:NTEK) you would have noticed that they are full of ideas and are surprising investors every few days with press releases updating their current status and announcing more new acquisitions.

The last week of trading didn’t differ much in that direction, as we saw quite a few press releases coming from their PR team. The information of 2 new acquisitions and the unveiling of their 4K Ultra HD media player and the website through which it can be pre-ordered, however, weren’t enough to help their stock price-wise. In fact the only session in which their stock gained some value was Monday’s. The rest of the week went very discouraging for investors as NTEK lost a total of 45% of their price and finished the week at $0.0605.

This week is starting somewhat like the previous as their stock managed to regain some of its previous value. However, will it continue like the rest of last week or will they finally start gathering momentum in an upward direction. It seems that investor confidence was boosted yesterday when NTEK‘s stock was traded just below their average of 12 million shares.

The total amount of shares that switched hands yesterday came at 10 million, which is quite below the 30 million that were traded in Friday, dooming NTEK‘s price to go down. The little movement volume-wise seems to be the culprit for the 31% gain in price which lifted NTEK‘s stock from the $0.0605 that it had at Friday’s close to $0.0795 at the last bell yesterday. Even though the trade value couldn’t compete with the $1.7 million that NTEK‘s stock had on Friday, the total amount of traded shares combined with the uprise in price made up for a healthy $813 thousand-a good start for the week.

Having in mind all these acquisitions and promising news, one can’t help but think that things are going in a good direction for NTEK. Is that really so? There are just too many questions about the company. We mentioned in one of our previous articles that they had acquired Clear Memories, Inc. (CM) and emphasized on something that wasn’t listed in the press release concerning the acquisition.

That is the fact that before the acquisition CM was owned by none other than NTEK‘s CEO, Mr. Jeff Foley. As we said that is not something that we can start pointing fingers for, but we really couldn’t figure out why he wanted to take his business under the wing of NTEK, who are yet to prove themselves profitable, while in the meantime CM is said to be very lucrative and since most of the process is automated the cost for revenues is low giving room for higher profits. Unfortunately due to the fact that they are not an OTC BB company they are not required to file an 8-K concerning the acquisition and we can only hope that its terms will be listed in their next financial report along with the actual financials of CM, so that we can see how profitable they actually are as a business.

Furthermore, their latest financial report, which is filed according to the alternative reporting standard in the OTC Markets proves a bit discouraging when you see that they have only $8 thousand in cash, $98 thousand in current assets (half of which in prepaid royalties, with the other half in property & equipment), $1.4 million in liabilities and a net loss of $219 thousand. All this points to a risky investment choice, so if you do have a strong desire to invest in NTEK and their seemingly good developing business be sure to do a lot of due diligence and weigh out all the risks.

Let’s not forget the other small cap enterprise that NTEK are doing business in collaboration with. Yes, we are speaking of Hannover House Inc (OTCMKTS:HHSE), who NTEK are partnering with in an attempt to make books available on your Smart TV. Their stock price isn’t promising either, as it’s marked with non-consistent movements and is currently nested at $0.0233 after dropping 5% yesterday.

On the other hand InVivo Therapeutics Holdings Corp. (OTCBB:NVIV) are continuing their long lasting ascent in the charts even though yesterday’s increase of 3.28% in price was not that big. They are currently being traded at $5.67 and so far it seems that nothing can stop the momentum that they have been gathering in the past 4 and a half months after they we submerged below $2 in the end of February.