New Energy Technologies, Inc. (OTCMKTS:NENE
) is getting well ahead this year, digging itself out of lows at the end of 2012. On Wednesday, the ticker retreated by 7% to $1.67, as it retreats from a peak of around $2.60.
NENE is part of the green energy hype, and its latest press release underlines the increased portfolio of patents. But this is all very preliminary information, and generating electricity from windows converted to solar panels is still a tentative option. Still, to NENE's credit, the company is not having an active promotion. In fact, promotions did little for NENE, taking it up to heights of above $8 in 2011, and later leaving the ticker to drop to $1.45. In the time between, NENE moved in a range between $3 and positions well below $1.
The bid for green energy left the company with the following financial strengths and weaknesses:
- $1.1 million total current assets
- $90,000 total current liabilities
- $2.4 million quarterly loss, zero revenues
So far, the company has issues with profitability, accumulating large losses with a lengthy development process. The company is not borrowing large sums, however, it is still not anywhere near releasing a product, and investors' discussions show impatience with the latest financial filings. And commercialization is not any closer than when we covered the ticker for the last time in 2011.
On the positive side, NENE is an active stock that has shown potential for recovery. In its innovative bids, NENE is a bit similar to Sigma Labs, Inc. (OTCMKTS:SGLB), a small cap company interested in the hype around 3D printing. But SGLB is still a development-stage company, and a heavily promoted one, reaching potentially unsustainable heights.
Gel Tech Solutions, Inc. (OTCMKTS:GLTC) is yet another innovator making a strong climb, but peaking at $1.70 and drifting sideways, to fall in the $1.50 range, quite close to the league of NENE. If this kind of price seems appealing, it is still best to estimate well your time-horizon, and not invest unless you can also afford less-than-ideal results.