Up And Down The Charts With NanoTech Entertainment, Inc. (OTCMKTS:NTEK)

It would appear that NanoTech Entertainment, Inc. (OTCMKTS:NTEK) just can’t display any sort of steady stock performance anymore. The ticker showed the first signs of waking up back in January when (not without some help from the paid pumpers) it shot up and registered daily gains reaching as much as 200%. Some hesitation followed and that is to be expected from a volatile penny stock especially when there’s a promotion but then, around the second half of May, things really started to stir up.

When we say “stir up”, we mean it. During the third week of May for example, the price was hovering around $0.01 per share. One month later, the ticker was already around $0.03 and then 007 Stock Chat and their affiliates Penny St0ck Spy came along and pushed it even further up. The boost was so huge that in a matter of two weeks, it managed to propel NTEK to $0.1395, the 52 week high registered on July 8.

When we saw that, we expressed some doubt as to how long the whole thing will continue and unfortunately, the results now, half a month later are not brilliant. Out of the thirteen sessions since the 52-week high, only three have ended on a positive note but more worryingly, the overall effect on the price is pretty bleak – more than half of the value is gone.

That’s not the sort of solid stock performance everyone expects from a future technological giant and while the second wave of emails from about ten days ago has certainly had its negative effect on the ticker, we’re not ready to blame only the pumpers for the whole fiasco.

After all, during that time, NTEK came up with a number of optimistic announcements and a thing that really surprises us is the seemingly endless support that the management team are receiving from the long-term shareholders despite the rather shaky stock performance. Indeed, the comments on NTEK‘s Facebook page and message boards suggest that people really are pumped up with enthusiasm, but is this really founded?

Well, on the bright side, NTEK does seem to have some sort of operations and they have even registered around $257 thousand in revenues for the first quarter of 2013, which is quite a bit more than what the previous report shows. In addition to this, the management team seem to be taking some steps to protect the shareholders from the potential dilution which could occur in case the lack of profitability continues and as we already mentioned in our previous articles, they bought back around 220 million shares. What’s more, they recently announced the completion of the acquisition of Clear Memories Inc, an ice sculpting venture which was previously held by NTEK‘s CEO, Mr. Jeff Foley. The acquisition is a bit strange considering the fact that the company’s regular line of business is quite distant from ice sculpting, but they do say that Clear Memories is a profitable enterprise which should certainly be reflected in NTEK‘s future financial statements. Another merger was announced on Monday and this time, the new subsidiary will be much more in line with NTEK‘s main business plan. As the name would suggest, MagicScreed3D is developing a piece of 3D technology with which, you can experience the enhanced effects without wearing those irritating glasses.

Everyone’s very excited and optimistic and the announcements coming out of NTEK‘s PR department certainly give a sense of confidence. Then again, not everything is going quite according to plan. Take the Nuvola 4K media player, for example. Back in May NTEK said that the Ultra HD box of tricks will be on sale on July 15. In reality however, right now, ten days after their prediction you can only pre-order the gizmo from the specially-developed website and NTEK claim that shipment of the first units will start “next month” giving us no information on a specific date. The social networks also suggest that there are some problems with the order page on Nuvola’s website and it would appear that right now, the portal for the IPTV channel developed by NTEK and Hannover House Inc (OTCMKTS:HHSE) is also down.

We’re sure that as soon as NTEK have the information on the first shipments of the Nuvola units, they will give it to us and the technical problems will probably be dealt with pretty quickly, but even so, right now, there’s far too little cold hard evidence to support the massive enthusiasm displayed by investors.

Furthermore, while violent movements such as the ones displayed by NTEK are not uncommon in Pennyland (the chart for Primco Management Inc (OTCBB:PMCM) illustrates the point perfectly), it would seem that the performance is disproportionate to the people’s attitude towards the ticker. That’s why, even if you do believe that NTEK has what it takes to succeed, you should still consider all the risks carefully.