Borislav Tonev

007 Stock Chat With A $20K Pump On NanoTech Entertainment, Inc. (OTCMKTS:NTEK)

by Borislav Tonev June 25, 2013
NTEK.pngIf you are the sort of person who is willing to invest in a promoted penny stock, checking through the historic performance under the pressure of the pumps is never a bad call. Right now, 007 Stock Chat and their affiliated newsletter, PennySt0ckSpy are touting NanoTech Entertainment, Inc. (OTCMKTS:NTEK, NTEK message board) for $20 thousand and that is why we decided to see if the behavior from the previous pumps suggests that NTEK can make it through unscathed.

A quick look at our database reveals that we have managed to intercept a total of three campaigns for them. There was one at the beginning of August 2012 and it was a complete flop. The pumpers were explaining in details that NTEK want to become the global gaming empire of the 21st century, but all that did was crush the ticker and within a couple of days, around 70% of the value was gone.

Then a couple of months later, in November 2012, NTEK came up with some exciting news about new appointments to their management team and the almost obligatory projections about future growth. This caused some excitement and, once again, some paid newsletters jumped on board. The history from August was bound to repeat itself and, sure enough, a couple of sessions obliterated nearly 70% of the value.

Then the pumpers kept quiet for some time and it would appear that NTEK managed to regain some of the investors' trust on their own. News of stock buyout and improvement in the quarterly reports gave the ticker a push in the right direction and even when the promotion from the end of March came in, its effects on the price were not as dramatic as the ones from the precious campaigns. So what are the odds now?

Well, it is true that some traders are putting quite a lot of hopes on NTEK and the performance from the last couple of months certainly suggests that they might be onto something. The figures in the financial reports are getting better and better with every quarter, as well. Here are the ones as found in the statement for the first three months of 2013:

  • cash: $8 thousand
  • current assets: $51 thousand
  • current liabilities: $1.4 million
  • quarterly revenues: $257 thousand
  • quarterly net loss: $230 thousand
  • accumulated deficit: $5.2 million

Sure, even at this point, the report looks rather dismal, but when you have in mind that the revenues for the fourth quarter of 2012 were less than $50 thousand, you can see that there is quite a lot of progress.

8NTEK_logo.gifWhat's the price for all this, however? Well, it's quite steep. They have secured financing through convertible debentures and throughout the years, they were forced to issue quite a lot of stock in order to pay off some of the debt. This means that although they bought back around 219 million shares back in January, the outstanding capital is still quite substantial - 545 million. There are things to suggest that it might rise further.

Cash-wise, things have always been pretty dismal around NTEK and that's why they were forced to pay the wages with the issuance of stock. The quarterly report gives us a detailed history of the share issuance throughout the last couple of years and we found something peculiar.

According to the statement, one of NTEK's employees, Mr. David Foley received more than 60 million shares between March 2012 and February 2013. Some of them should still be restricted, but we can't help but wonder: "How come an employee like David Foley receives more than the current CEO of the company, Mr. Jeffrey Foley?".

USEI.pngSome of you might argue that David Foley is one of the founders and you might also say that his technical knowledge is what pushes the company forwards and that's a fair point. What disturbs us, however, is David Foley's past. We did a quick research on him and we found that he was once charged and later pled guilty to Conspiracy to Commit Mail and Wire Fraud and Conspiracy to Commit Bank Fraud. Whether this, coupled with the fact that he owns quite a lot of shares, will affect NTEK's stock performance in any way, shape or form is unknown, but we reckon that the paid pump running for them is a good enough reason to tread extremely carefully and weigh the risks before jumping in. Unless, of course, you want end up losing money which is always a possibility when the newsletters are involved. The people who jumped in on US Energy Initiatives Corp Inc (OTCMKTS:USEI) can confirm.

Comments 18

1. Guest
August 17, 2015, 01:18PM

Quotes hey, I put everything I had into this back in 2012 when I got a spam email, because I always invest in companies that send me spam emails. When should I think about selling? So far I've lost 80% of my investment, should I wait until I lose more than 100%? Until then I'm moving into a nice cardboard box, THANKS!

2. Guest
May 19, 2015, 02:13PM

Quotes Ha look at it now!!! This is funny...(drops the mic)...what a tool

3. Guest
June 19, 2014, 02:10PM

Quotes David Foley the convicted felon just stated that he has never paid for a stock promotion of NTEK. Hmmmmmmmmm.

4. Guest
June 19, 2014, 01:59PM

Quotes NO question this is a scam. Former CEO is a convicted felon still working in the company and placed his brother who prior to becoming head of this supposed tech. company worked as an Ice Sculpture. Numerous promises all of which never came to fruition. Yet the pumpers are still there and the lambs follow to the slaughter.

5. Guest
June 17, 2014, 04:23PM

Quotes What a fukin turd of a stock. Even NIKOs pumping BS can't keep it above .05 Bwhahahahaaha :-)

6. Guest
May 23, 2014, 12:37AM


7. Guest
March 07, 2014, 09:04PM

Quotes NTEK is a complete scam and share selling scheme. David Foley is a convicted felon for multiple counts of fraud and he is also a known uame counterfeiter.

This is a pump and dump stock distribution scheme. Avoid.

8. Guest
December 15, 2013, 03:53AM

Quotes Foxconn to manufacture the Nuvola NP-1 4K Streaming Set-top Box......nuff said....(throws the mic down)...

9. Guest
December 14, 2013, 08:07PM

Quotes I see comments are open again. Yeah.. NTEK is at .13 Still think it's a pump and dump? Awesome software dude.

10. Guest
July 17, 2013, 01:28PM

Quotes NTEK
Al Stone, founder of Nintendo, joined the board in May.

Look at their product lines, as you board the elevator.
Makes apps for iphone, android, gaming consoles for casinos, vid games,
& more acquisitions to come.

Going up?

Long & Strong.

11. Guest
June 28, 2013, 07:10PM

Quotes Im really sorry to hear you are so short on NTEK.....Keep trying tho.....your endeavors are truly amusing.......

12. Guest
June 28, 2013, 06:56PM

Quotes OK, and now the next day here.. let's see. Ah. .06. Up 63%+ since this article was posted. Organic growth. No pump. No dump.

13. Guest
June 27, 2013, 01:05PM

Quotes Looks like NTEK still has accumulation going on. Breaking through .04 when your software seems to have said it's probably going to go down from .038. Did it malfunction?

14. Guest
June 26, 2013, 04:38AM

Quotes This company has rose up dramatically and delivered on every promise in the last 6 months I've been following it. Everyday many new investors become long on this stock. It will only continue to rise in pps with occasional dips. I suggest interested investors to do a thorough DD and you will see for yourself.

15. Guest
June 26, 2013, 04:37AM

Quotes This company has rose up dramatically and delivered on every promise in the last 6 months I've been following it. Everyday many new investors become long on this stock. It will only continue to rise in pps with occasional dips. I suggest interested investors to do a thorough DD and you will see for yourself.

16. Guest
June 25, 2013, 12:54PM

Quotes i see none of the positive things going on with ntek mentioned here...and people need to reasearch the charges he pled guilty to...looks like to me he was just trying to not be shafted on his inventions...

17. Guest
June 25, 2013, 12:37PM

Quotes Does your software account for a non-dilutive promo vs. the normal dilutive version? NTEK is non-dilutive, and engaging in a share buyback. You also missed that it was promo'd on 6/20 at .0265 and never fell. Sad you picked one of the few stocks that actually is being driven by real substance as opposed to the many others that aren't and are being promo'd. Going to make this advertisement look kind of bad in the near future. Oh well.

18. Guest
June 25, 2013, 12:31PM

Quotes NTEK needs no awareness campaign. The company is growing organically.

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