Neologic Animation Inc (OTCMKTS:NANI) Getting Touted Once Again
You know how when you visit some websites, you get a message saying “Your Internet Explorer is out of date. For better browsing experience, we recommend using the latest version.”? When we entered Neologic Animation Inc (OTCMKTS:NANI)’s website today, we got the same message and we wouldn’t have bothered to mention it if we were using an old version of Internet Explorer but, as a matter of fact, we were viewing the page through a freshly updated Mozilla Firefox. Amusingly, when we opened the website with an old version of Internet Explorer, we got no notifications whatsoever.
We’re not here, however, to review websites, but to talk about penny stocks that you might be interested in and there is some news around NANI. When we say “news”, we mean that they made an announcement yesterday stating that they plan to launch their eLearning system worldwide and that’s not really news at all since they said the exact same thing about a couple of months ago when we wrote our last article about them.
In it, we discussed that, instead of issuing optimistic press releases full of bombastic revenue projections, they should focus on getting the ball rolling first but, unfortunately, they don’t seem to listen. It would appear that NANI‘s revolutionary eLearning system is still not operational in China, where they intend to market it at first, not to mention the rest of the world.
When you read through the annual report for 2012, you will see that they have set themselves the task of setting up the system first in the Chinese region of Yangtze River Delta by the end of 2013. Then, if they’re happy with the revenues, they plan to cover the whole of China between 2014 and 2016 and all this means that it really is far too early to speak about global marketing of a product that is not ready yet. And it really isn’t – the Naniya World website (quoted as their flagship product) is online, and although we’re not fluent in Mandarin, we tried clicking all the links only to find out that most of them don’t work.
NANI have been in this business for about a year and that, apparently, isn’t enough for them to design, develop and market their revolutionary system. In their favor, we have to point out that they didn’t really have much financial resources to work with. Here’s a recap of the figures as of December 2012:
- current assets: $94 thousand
- current liabilities: $230 thousand
- no revenue since inception
- yearly net loss: $60 thousand
They also say that they will need $1.1 million if they are to continue their operations but despite all this, the pumpers receive tasty compensations every now and then for saying that there is some real potential in NANI‘s stock. The results, as you might have guessed, are appalling. We rummaged around our database and we managed to find a total of six promotional campaigns since the first one, dated June 2012, resulting in a total of 95% of the value gone after just eleven months.
Now there is a new one. The number of newsletters taking part in it is huge, the total budget is around $115 thousand and it is probably aimed at lifting the ticker above the $0.01 per share mark. While NANI might just move in the upward direction, we reckon that the run will be extremely short-lived and will be followed by a substantial downfall. Which, by the way, is what usually happens when a penny stock company with no real products and a depressing financial statement gets promoted. The performance of MineralRite Corp (OTCMKTS:RITE) (who got pumped on April 25) illustrates that perfectly and it shows you how careful you should be before jumping in on the artificial hype.