NanoTech Entertainment Inc (NTEK)

[DangFool]

I don't believe at all that they started out never intending to release the product.

Let's see how close to the bull's eye I can get: I believe they built the NP-1 with the best of intentions, maybe biting off a little more than they could chew, but with every intent of making a go of it. They were armed with marketing and technical analyses that told him just how much money could be made if the effective bitrate for high-quality video (defined, as always, by me as "better than 1080p off a Blu-Ray disk") was $X for Ymbps bitrate, $Z for Qmpbs bitrate, etc. They'd have a table of target bitrates, and they'd have a precise cut-off for when the whole venture would be profitable. Netflix and Amazon and Sony and Samsung all have the same numbers.

Then they tried and failed to hit the target bitrate, by a significant margin. Probably by a longshot. It wouldn't be profitable as conceived, even if UltraFlix was fully operational. So why pay Foxconn the enormous sums of money required to mass produce a product you already know can't succeed?

But they're public. They felt the need, for good or bad, to keep the stock price up. So they start telling stories, first small ones, then getting bigger, and can no longer even recognize whether or not they're honest men and women. In that sense, the fact that they're public is an albatross, keeping them away from the much smaller, albeit profitable side businesses they have going on of signage and 4K mastering.

That's just my theory. NTEK insiders can read that and maybe tell me in 6 months if I actually hit the bull's eye. If they ship the NP-1 in a few weeks to enormous commercial success, then obviously I missed the dartboard completely.

If you believe that they are manufacturing excuses and delaying the release with the intent of never releasing the product, I can't say I would be able to follow that logic based on the media products they've already released and the people they have on their management team and advisory board. It would be quite a stretch IMO.