NanoTech Entertainment, Inc. (OTCMKTS:NTEK) Goes Up After The Missed Deadline
We were starting to get worried about NanoTech Entertainment, Inc. (OTCMKTS:NTEK). In Mid-July they launched their Nuvola 4K website through which they started receiving pre-orders for their Ultra-HD products. That, in itself, was something of a delay since, as we wrote back then, the management team had expected to have the gizmos on sale by July, but regardless of this, the news got investors all fired up.
NTEK garnished the press release of the new website with promises of the set-top-boxes appearing on Amazon and retail stores being set up “in August”. Shipping of the new revolutionary gadgets was also supposed to start during the eight month of the year and that, coupled with the high expectations about the annual report put penny stock investors on the edge of their seat.
The results for the twelve months that ended on June 30 were published on August 14 and, as we wrote in our previous article, they’re not perfect, but they do show certain signs of progress that not all small cap ventures can brag about. There was a little delay in investors’ reaction, but nevertheless, the ticker started climbing once again and made the jump from around $0.06 all the way to $0.09 in just six sessions.
Despite this, NTEK were still keeping quiet about the 4-K media players and their first shipments. Looking at the charts, we can see that apparently, some of the investors started to have their doubts and while the trading volumes between August 28 and September 10 weren’t colossal, some selling commenced which set a generally Southern direction for the ticker.
NTEK did announce a couple of new things like, for example, the addition of a new Vice President, the expansion of the lease footprint at Hurricane Electric’s data center and about the broadcast of Wine Channel TV’s Awards on Nano Flix. The press releases didn’t really have that much of an effect on the stock movement, though and it was pretty clear that if the Nuvola players were to be delayed further, the ticker might suffer the consequences.
Fortunately, the good news came out just minutes before the opening bell yesterday and it literally set NTEK on fire. By the end of the day more than 8.5 million shares had changed hands and the total dollar volume had exceeded $765 thousand. The price moved along nicely as well. The ticker opened the session at $0.089, way above the previous close, showed virtually no signs of hesitation and after six and a half hours of intense trading, finished the day at $0.092, which is around 20% above Wednesday’s value. Looking at the message boards, we can see that traders and especially NTEK‘s loyal shareholders are still jumping up and down with excitement which might suggest that some more positive movement is to be expected. There are, however, a couple of points that we need to make.
The first is related to the press release issued back in July. As we mentioned, according to it, shipping of the Nuvola products was about to start in August and it’s clear that the management team missed the deadline by about two weeks, which is not that big of a bother but it’s clear that failed promises like these do affect the stock performance.
In July’s PR, they also said that set-top-boxes will be available for pre-order from Amazon “later this month” and they announced that their San Jose corporate retail outlet will be opened in August. You can see from this link that NTEKs Nuvola products are still not available on Amazon, and we have yet to hear about the opening of the brick and mortar shop.
You should also probably keep in mind that while a gizmo from the Nuvola family is now being shipped all around the world, it’s not the NP-1 revolutionary 4-K streaming media player that costs around $300. The device that’s actually ready for sale is the NP-H1, which is, as NTEK put it, a “set top computer” and, as far as we can work out, it’s a normal computer (powerful enough to provide an Ultra-HD image) squeezed in a tiny box, which, we reckon, is not that revolutionary. The price is also a bit different. It starts at $699 and if you want a Windows operating system and some more storage, it could go to as high as $1,149.
Still, we should point out that despite some slight changes in the plans and a few delays, NTEK are marching along at the moment. If they manage to put all the new products on sale and make a profit out of them, they should be in for some growth. Provided, of course, they manage to stay away from the paid pumpers. Nouveau Holdings, Ltd. (OTCMKTS:NHLI) showed us yesterday how badly wrong things could go if they fail.