NanoTech Entertainment, Inc. (OTCMKTS:NTEK) Digs Into New 52-Week Lows

With a single green session recorded in June so far, NanoTech Entertainment, Inc. (OTCMKTS:NTEK) is not doing particularly well. On Monday the company closed at a new 52-week low, at $0.0108 per share. NTEK dropped 6.9% on its heaviest volume for the past month.

It seems no amount of PR can help push NTEK up the chart for more than a couple of sessions. On June 4 the company broke nearly a month of silence and put up a new press release. NTEK announced launching a version of its UltraFlix app for Apple’s 5k iMac. The news was released around noon and pushed the company to its only green close last week.

NTEK reported a positive bottom line for the quarter ended March 2015 but the net income figure had shrunk significantly on a QoQ basis. Expenses had run rampant in this last reported quarter, with a far smaller increase in sales but with cost of sales exploding from $126 thousand to $875 thousand QoQ. This is a 13% increase of sales, against an increase in cost of sales of nearly 600%.

It’s true that the effect of NTEK inking deals to offer hugely successful movies such as Interstellar through UltraFlix will become visible in the company’s next report. However, NTEK‘s fiscal year ends in June, which means there will be no report until late September – a stretch of time within which a lot can happen with the share price.

It’s a different question altogether whether or not a couple of big titles such as Interstellar and G.I. Joe can have any tangible impact at all, when set against a catalog otherwise full of very old Hollywood movies, old foreign classics and Chinese action flicks.

Whether NTEK can manage a bounce from the $0.01 baseline remains to be seen.