The web is an enticing place of new technologies, and every player offering the next best thing is most probably doomed to striving with harsh competition than guaranteed success. This is what befalls Nano Tech Entertainment Inc. (PINK:NTEK
), as its stock slipped nearly 60 % on Monday's trading.
NTEK promises to expand its offers in 3D television and online gaming, trying to profit from customers who go out less often for entertainment because of the economic crisis. The company's strongest claim is its technology to convert television programming into 3D, stating that such technology will be used with leading TV set producers Samsung and LG.
NTEK claims that the 3D tv industry in the USA is growing by leaps each year and the company projects profitability in 2013.
So far, the NTEK financials remain dubious, as the company shows zero cash reserves while incurring great expenses and showing great share dilution:
- $1.9 million total liabilities
- 75 million stock at $0.001 par value
The stock is hyped with the aid of a paid promotion, though with a small budget of $2500. Along with this, the company regularly releases PR information about its intended marketing activity, patents and ideas, all of which are in the exploratory stage, but sound impressive. So far the hype has caused choppy trades on relatively low volume, although yesterday's fall came after the sell of more than 13 million stocks.
The sale may be due to a convertible note seen on NTEK's balance sheet, with insiders selling their par value shares at five times the price, $0.005. The start of the promotion on November 4th was followed by a surprisingly fast sell-off that may be insider- triggered.
The last promotion of NTEK in August led to a decline of the price by 95% and well into double-zero territory. MicroCap MarketPlace is currently pushing Graphite Corp. (PINK:GRPH, GRPH message board) and we may expect a similar scenario of daily gains and falling off a cliff.