Borislav Tonev

Novint Technologies, Inc. (OTCMKTS:NVNT) Becomes More Volatile

by Borislav Tonev April 4, 2016

There are plenty of companies on the OTC that are delinquent in their filings. Sometimes, when they stay dark for too long, the stocks get suspended and they are later revoked. Novint Technologies, Inc. (OTCMKTS:NVNT, NVNT message board) hasn't filed any financial reports for more than six years and its latest ever filing is four years old, but despite this, the ticker has managed to avoid a suspension and it's still traded on the OTC Markets. It's been pretty explosive over the last two sessions.

On Thursday, the stock blasted out of the sub-penny range and it reached a close of more than $0.02 per share. On Friday, it opened the day with a huge gap up at $0.04, and after reaching a truly absurd intraday high of over $0.07 a few hours later, it slid back down to a close of $0.03 per share – a respectable 43% above the value at the end of Thursday's session.

Wonder why all this happened? A document popped up last week which showed that one of NVNT's patents has been assigned to Facebook Inc (NASDAQ:FB).

The event apparently isn't big enough to be covered in a press release by either NVNT or FB, but it is big enough to cause plenty of speculation. In fact, the message boards are literally jammed full of horrible cliches like “diamond in the rough”, “gold mine”, and “hidden gem”.

There are also plenty of projections of a potential buyout and examples of penny stock companies that did eventually manage to make it big. The only thing that NVNT's supporters fail to mention is that the OTC enterprises from the said examples weren't delinquent in their filings.

But let's leave the stylistic atrocities and the overly hyped-up investors aside for a moment and take a more level-headed look at the whole situation.

Even the biggest skeptic can't deny the legitimacy of the patent assignment. Facebook can really use NVNT's technology to develop a device similar to the XIO controller which might come in... err... handy considering the NASDAQ giant's brand new venture into the virtual reality field. Everyone can see that.

What nobody can say, however, is whether NVNT really is going to swim in cash thanks to the patent deal. In fact, some people argue that the intellectual property was actually assigned a while ago and that the money has already been transferred. A single press release should be able to clear up quite a few questions, but by the looks of things, the people at NVNT's helm don't reckon that keeping investors posted on the developments around the company is of utmost importance. Even if you agree with them, you should still keep your eyes peeled.

About six minutes into today's session, NVNT is traded at $0.022 – 33% below last week's close.

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