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By Boyan Angelov
Sep 16, 2014

NanoTech Entertainment, Inc. (NTEK) Pushed Up By New Deal

NanoTech Entertainment, Inc. (NTEK) climbed up by 16.67% yesterday on a volume of 22,8 million shares trading hands. NTEK was pushed by the news that it had secured an agreement with Sony Electronics. Pursuant to this deal, NTEK's UltraFlixTM 4K Streaming Network App will be associated with Sony's 2014 4K Ultra HD TV product line.

Yesterday's climb was the highest since late June for the ticker. NTEK has announced a number of ventures recently that were not effective in getting investors' interest. The news about the 4K Ultra HD being made available to UltraFlixTM subscribers came out on August 27 to virtually no reaction.NTEK_chart.png

Another venture from late August was the partnership NTEK entered into with James Industries. A press release from August 25 announced the two companies had partnered to develop a “state-of-the-art” player advantage system to the gaming industry. NTEK is scheduled to exhibit its gaming product line at the Sands Expo & Convention Center in Las Vegas from September 30 to October 2.

Although these two announcements kept NTEK afloat throughout the last week of August, the company did not advance past that point and quickly went back downhill at the beginning of September. The new deal NTEK signed on with Sony Electronics gives the company the exposure that its previous ventures did not provide.

Whether or not NTEK has the potential to take advantage of the given opportunity is up for debate but a look into the company's financial disclosure may be of help. The penny stock's fiscal year ended on June 30 and while its annual report should come out by the end of the month, the quarterly report for the period ended March 31, 2014 is the latest filing available:

  • Cash: $34,8 thousand
  • Total current assets: $1,5 million
  • Total assets: $2,1 million
  • Total liabilities: $582,3 thousand
  • Revenues: $5,1 million
  • Net income: $376,6 thousand

NTEK has a solid base of assets to utilize, although it is low on cash. With a high amount of revenues, most of which stemming from sales media, the company has managed to end the last few periods with a positive balance.

NTEK_logo.pngThe company appears to be maintaining steady financials, but that has happened in a period when NTEK has not been making investments in product development. The latest plans call for a different course of action that the company has not taken for a while.

After relative stagnation, NTEK has drawn plans on paper that make it an interesting company to observe. Time will tell if the company can put its plans into fruition and get on the right path. Until results are in, investors who find interest in NTEK's shares should do the necessary due diligence before venturing on the stock market.

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