SolarWindow Technologies, Inc. (WNDW)

[TRUISM]

New Energy Technologies Inc (OTCMKTS:NENE) Receives Some Exposure
by Borislav Tonev--October 1, 2014

Click For hotstocked.com Link






On November 15, 2013, New Energy Technologies Inc (OTCMKTS:NENE, NENE message board) hit its 52-week high of $3.61 per share. On September 4, 2014, just nine and a half months later, it bottomed out at $1.10. The stock has managed to claw back some of the lost ground and after a 20% leap yesterday, it's sitting at $1.54, but even at these levels, it's still more than 50% below the heights reached at the end of last year.

This, coupled with the fact that NENE appears to be sharing its corporate headquarters (down to the number of the suite) with another penny stock called Microchannel Technologies Corp (OTCBB:MCTC), could be enough for many investors to simply walk away. Yet, yesterday's jump and the $300 thousand in dollar volume the stock registered suggest that they're doing the exact opposite.


The reason for the impressive performance was a press release which came out about fifteen minutes before the opening bell. NENE informed us that they have demonstrated their see-through solar panels during the National Lab Day. The event took place in Capitol Hill, it was cosponsored by the U.S Department of Energy and people from Congress were also there to see NENE's technology. In the management team's own words, the company is moving ever closer to commercializing the clever panels and apparently, investors reckon that, now that some high-profile individuals have seen the products, the process could be accelerated even further.

They also appear to be happy about the fact that, at least by Pennyland standards, NENE's latest financial statement isn't too horrific. Here's what the company had on May 31:

* cash: $1.3 million
* current assets: $1.5 million
* current liabilities: $281 thousand
* no revenue since inception
* quarterly net loss: $932 thousand

Sure, there's still no revenues, but that is to be expected from a development stage company. On the bright side, NENE have a reasonable amount of cash in the bank and the debt is not significant enough to ruin the balance sheet.

All in all, NENE has come a long way and, at least in theory, the fact that the solar panels are getting closer to being commercially available should mean that more and more positive developments are about to follow. Predictably, investors are scrambling to take their positions before the products hit the shelves and the stock pops.

The hassle to place your buy orders, however, might result in some holes in your due diligence and as we've mentioned numerous times on these pages, this is never a good thing.

Take Note 2 (on Page 9) of the latest 10-Q, for example. If you read through it, you'll see that a year ago, NENE issued a $3 million convertible promissory note which can be turned into investment units. Each unit consists of one common share and two warrants and the conversion rate amounts to either $1.37 per unit, or 70% of the 20 day average closing price, whichever is lowest. There was a lock up agreement between NENE and the note holder, Kalen Capital Corporation, but the report states that it will expire in five days' time. A registration statement from last week shows that after October 6, Kalen will be absolutely free to unleash a large amount of shares on the open market.

Considering this carefully before making your final decision might save you a lot of headaches down the line.





TRUTH