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NanoTech Entertainment Inc (OTCMKTS:NTEK) Looking To Rebound

NanoTech Entertainment Inc (OTCMKTS:NTEK) Looking To Rebound
Written by
Alex Carlson
Published on
February 3, 2016
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To say the last year has been rough for shareholders of NanoTech Entertainment Inc (OTCMKTS:NTEK) is an understatement. Endless dilution has pummeled the share price of this once high-flyer. It's really quite disappointing for the NTEK, which is the pioneer in bringing the most visually stunning streaming TV experience to consumers focused on all aspects of the entertainment industry. The company has created a number of products including the Nuvola NP-1 which is the world’s first streaming media player that supports 4K UltraHD movies.However, we think that not all hope is lost. The company issued an update in December where it addressed some of the issues facing the company. Peter Riordan is out as CEO and Chairman Jeff Foley has taken the reins until a permanent CEO can be found. As the company stated:

"As many shareholders have recently communicated, the board is equally disappointed with the current price per share and market valuation especially during this unprecedented time of growth for the company. We are confident in the future of the company and the success that will return shareholder value."

The fact remains that the company has accomplished quite a bit in the past year. These accomplishments have been ignored by the market. Among the company's accomplishments are releasing support for several new high profile hardware platforms; being a featured app on Roku, Vizio and Sony TV's; increasing the library offering by 4 times including major studio offerings increasing in the past year from 10 titles to over 1,000 titles; establishing exclusive distribution of 4K Ultra HD Movie Offerings from Major Studios including several new releases such as Terminator Genisys; releasing original content with major partners such as the San Francisco 49ers; customer base growth over 1000% including a recent 10 times month over month growth during the past 2 quarters and on track to hit One Million Users in 2016; establishing UltraFlix as the source for the best quality versions of any movies available by any consumer network; and being featured in store promotions with major brands including Sony, Roku and Vizio.

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Nanotech has been building its 4K library for nearly two years to deliver an extensive collection of 4K entertainment. With a combination of native 4K digital titles, 4K film scanning, high-quality scaling techniques and a dedicated team of video artists, UltraFlix has already amassed a selection of more than 1,000 Hollywood hits from major studios such as Paramount, MGM, Millennium, Magnolia and Warner, award-winning documentaries made for IMAX theatres, hot new TV series from A&E Networks and stunning time-lapse motion art from top independent producers from around the globe.Shipments of 4K Ultra HDTVs surpassed expectations in 2015, reaching 6 million units in North America, with forecasts to double that level to 12 million units in 2016, according to data just released by market research firm DisplaySearch/IHS. At CES NTEK VP Andrew Taylor said:

"UltraFlix is quickly becoming the destination for 4K TV owners to get their fix of visually stunning 4K content. We started a controlled and conservative roll-out last year at CES and here we are one year later with over 100,000 new users in Q4 ‘15 alone. We’re well on our way to reach 1M users this year.”

Last month, NTEK signed a deal with Akyumen Technologies to ascertain the feasibility of using NanoTech's UltraFlix platform to stream content in conjunction with Akyumen's projection technologies and devices. The strategic collaboration will begin immediately with the goal of streaming content via UltraFlix/Akyumen worldwide. The key here is that NTEK is looking to capture the mobile market. ZenithOptimedia expects mobile to become the main platform for viewing online video next year. In 2012 mobile devices accounted for 22.9% of time spent watching online video worldwide. By 2014, this proportion had risen to 40.1%, and is expected to reach 52.7% in 2016 and 58.1% in 2017.

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NTEK sits at the ground floor of the rapidly growing UltraHD/4k space. However, toxic debt has lead to significant dilution to long-term shareholders. The good news is that shares look to have bottomed and cannot fall much further. If management can execute and turn things around, NTEK still could be a winner. We know from the past, that NTEK has runner in its blood so we'll be watching closely. We'll also be updating Insider Financial with any new developments from NTEK. Sign up today and get the latest on NTEK!Disclosure: We have no position in NTEK either long or short. We have not been compensated for this article.

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