By: Tomas Ronolski - AllPennyStocks.com News

Tuesday, May 7, 2013

Share structures can get out of control in a fast and furious manner with developmental companies. All of us that have been around the penny stock market for any length of time have seen the dilute, reverse split and dilute again business model that is usually veiled with the same mantra of the reverse split being necessary to move to a senior exchange and reflect the true value of the company. Of course, as management says that out of one side of their mouth, their printing shares just as fast as they can to generate more capital, perpetuating the cycle. It’s a breath of fresh air to see a developmental firm at least making an effort to build shareholder value by buying back some shares to reduce a large share count. NanoTech Entertainment Inc. (Pink Sheets:NTEK), a conglomerate of entertainment companies with segments in IPTV/media, gaming and mobile technologies, had their share structure grow to near 800 million shares outstanding, but in 2013 has repurchased more than 25 percent of them to lower their total outstanding to under 546 million. Is it low enough to build real value? Well, that is only relative to the company generating meaningful revenue, but it certainly is a step in the right direction.

The company’s financials on OTC Markets shows that for the quarter ended March 31, NanoTech generated gross sales of $257,551 and a net loss of $219,606. The revenue was 37 percent above projections, according to a statement on Monday from the company. CEO Jeffrey Foley said that the company’s goal is to swing into profitability by the end of the year.

Last week, NanoTech announced the availability of a new channel, “Inside NanoTech,” available online and through the popular Roku device. The channel features corporate updates, interviews and industry news. A quick look shows limited material at this point.

On Tuesday, the company said that its media division is bringing a new NanoTech branded channel, called NanoBooks, to several medians, including Roku, smart televisions, Apple TV and others. Essentially, NanoBooks will be a library of eBooks, comprised of literary classics, periodicals, reference books, etc., that are published for reading on a television. For a one-time fee, authors will also be able to publish their works through NanoBooks as well.

Access to the library will be free in an ad-supported format or ad-free for monthly subscribers.

"NanoTech Media is excited about exploring this new application of eBook technology by making use of a large format screen within people's homes," stated NanoTech CEO Foley. We can provide a new, alternative method for people to read books with their existing equipment and not have to buy any additional technology. We are very enthusiastic about this project and being able to provide access to thousands of books onto the OTT / IPTV platforms."

A beta test is planned on Roku in July with a larger roll-out to additional platforms to follow.

Investors seem to be paying attention to NanoTech’s recent developments and share buy-back program. In 2013, shares have risen from the area of $0.001 to as high as $0.0283 in early February, before settling back down to current levels around 1 cent. This level leaves the company with a market cap just over $6 million. As revenues are rising, albeit still at low levels, investors will be keeping an eye on that share structure as a sign that this junior is continuing to make positive progressions as it launches it new technologies. Proper due diligence is, as always, encouraged.

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