NanoTech Entertainment, Inc. (PINK:NTEK) Soars Fifty Percent
NanoTech Entertainment, Inc. (PINK:NTEK) spent most of last week falling apart on the charts. So, when everybody began to think that the good upward trend from the last few weeks was no longer happening, NTEK struck back helped by a letter to shareholders issued by the CEO himself.
Last Friday, NTEK soared a staggering $48% on a volume of slightly less than 40 million shares, some 50% higher than the average daily turnover of the stock. Thus, NTEK winged its way to the list of the highest daily gainers in pennyland. So, what is it about this letter that gave NTEK such a big boost when we are all acutely aware of the dire financial situation of the company?
Besides boasting about all the improvements NTEK has supposedly made for the last three months or so, CEO Jeffrey A. Foley also adresses investors’ concerns regarding the massive selloffs of NTEK shares on the preceding days which resulted in a dismal chart performance. Rendering all their fears as ‘unfounded’, Foley solemnly reiterated that NTEK is a real company with real business activities and real products coming out soon. Do not get overly enthused yet, though.
When you take a look at NTEK‘s latest quarterly report, you will certainly notice that the company’s cash needs for the current fiscal year are estimated at $1.75 million to fully implement its business plan, which is light years away from the sad $668 available on paper as of Sep. 30, 2012. Since NTEK‘s total assets barely crack the $50K mark, the company will solely rely on equity financing to raise external capital.
At $0.0205 per share, NTEK does not really symbolize an attractive long-term investment opportunity.
While Foley’s letter is full of over-optimistic expectations for the future development of the company he is in charge of, they are now bordering on science fiction rather than becoming a reality. Unless NTEK succeeds in raising sufficient external capital to turn plans into action, all the points set out in the letter will most likely remain wishful thinking.
