Reasons why NTI (Neurotech International) share price will soon...

Reasons why NTI (Neurotech International) share price will soon double:

As a note: NTI has created a in-home headset for children with Autism that lowers behavioural tantrums, helps to build there focus and hightens communication ability. There is currently no device on the market like what NTI offers for in-home use. One in 68 children suffer from Autism representing a massive market.

NTI has the following impending announcements;

• Major United Kingdom distributorship announcement to be made in December opening NTI to a market of 32,500 customers at a product unit price of $2865 equaling $98 million alone dependent on penetration ability. I might just add NTI has no competition in the market and its products are patented. Germany, Switzerland and Austria have a target market of 49000, Italy 30,000 and France 33,000. This does not even take into account the USA. I will let you do the numbers! What is important here is the future expected earnings projections that investors quickly do when coming up with a potential market cap for a company upon major announcements. In my opinion this major company ‘face-changing’ re-rate will occur around when full double blind results are announced.
  
  
• NTI is to release within four weeks announcement of finalisation of double blind study. Preliminary results (at the half way mark) indicate clinically significant results described as ‘outstanding’ with many of the children falling back into the range of normal neurological function by the end of their treatment – Dr Ahmed Hankir. Currently 50% of NTI patients have undertaken NTI’s Double Blinded Study with preliminary independent comments from Dr Ahmed Hankir of Bedforshire Centre for Mental Health Research in association with Cambridge University noting: “The Mente Autism device is one of the most exciting investigations this year. .  NTI has also noted whilst the study is ongoing (50% complete) they have observed major positive changes in the children in the active arm of the study and no statistical changes in the control group who did not receive active treatment. Neurofeedback is not a new technology - it is used and proven in clinical settings - NTI are the first to intelligently take it into the home. [1][2]
  
  
• Shortly after the double blind results are announced I believe there will be multiple roadshow and presentation of result announcements that are important for NTI’s exposure onto the wider market that will help to build their authority and subsequent share price. In my personal experience this will be further accompanied by partnership announcements that give NTI as a stock authority which is important to obtain a true share price re-rate. Having traded in many ‘like for like’ companies who were in a similar situation to NTI - in their development timeline - I have found striking similarity in the types of important follow up announcements that are released after a major announcement that also influence share price positively. This is in my opinion only.
  
  
• NTI also has a FDA Submission milestone that I believe will drive up NTI’s share price. Although it will only be the submission and not the outcome it still provides for an announcement that will assist with the promotion of NTI and one that the market will start to price in even prior to actual announcement outcome. This is in my opinion only.

• NTI is not in a production phase yet where they are releasing their product widely on to the market and thus are not being evaluated from an output perspective. NTI is being evaluated by development stage milestone outputs. The biggest impending milestone is outcome of double blind study. As a note: 4C’s are the great production stage reality checker – especially for a stock that has moved up exuberantly at the end of their development phase and are then being evaluated on production output in production phase.

• Put simply – there is no other product on the market that is doing what NTI does. The Mente Autism in home device has no competition (in home). It is an incredibly unique product and has a massive target market as Autism related disease affects one child in every sixty-eight. The CEO of NTI has noted in a November 9 Investor call the difficulty of educating the market on a product that has no predecessors. Not only is NTI a small fish with the company only having a total market cap of $19 million the pond NTI is sitting in - is its own. The market penetration NTI is attempting to take advantage of over the next 24 months (within Europe alone is 140,000 representing up to $400,000,000 in sales. This represents a very fast developing pond even if NTI only obtains one tenth of its goal. Within my personal strategy I do not care too much about the realities of production phase results – I deal in development stage companies that go big because investors/traders and punters do back of the napkin numbers that force share prices up to exuberant amounts. I believe when punters do this for NTI it will push NTI's share price up dramatically

• NTI is also back at its pre-preliminary announcement share price of circa 0.20c representing a de-risked company without the premium share price. If you view NTI’s price chart one can see how NTI’s SP dropped after a pump and dump in addition to a minor and temporary distribution challenge that has since been resolved. I should note – I often look specifically for companies as a part of my trading strategy that have a temporary issue that exaggeratingly effects their share price.

• From August to November NTI moved from a downward trend and has since evened out securing itself strong support circa 0.17 – 0.19c. Obviously poor news can always push a share price lower – however – re-trace risk is reduced as there is established support around this area. As NTI also has a low lying support line (and market cap) in contrast to its Post IPO of 40c this means NTI has a lot of upside potential once the news announcements start to kick for NTI over the next eight weeks.

to look at NTI from more of a TA perspective.

In my work I always utilise my previous trades and look for 'likeness' in setup when I look to my future trades - My latest being NTI. I have recently traded in SPL, NOR, CR8 and KNM - All of these trades of mine were highly profitable. I have only just entered NTI but I do expect it to be profitable too.

From a TA perspective SPL, CR8, NOR and KNM all held a similar TA pattern - whether a cup and handle or a scooping styled pattern. Specifically, I loook for companies which were hitting historic support lines and were generally unloved by the market yet had big multiple (face changing) news announcements impending.

I generally look for stocks that may have had some bad news (sometimes as simple as a delay) but is importantly only temporary. Most importantly, CR8 only experienced a minor and temporary setback (a delay in milestone). I also look for de-risked options where there is small pass/fail risk which the market has not taken into account. For CR8 it was the going live of their 'company changing' AI product 'Flamingo' that was well advanced in development and had little chance of falling on its face prior to 'go-live' announcement. A high pass/fail risk can be seen in specific biotech or miners where they will either have a good announcement of assay or study results or bad with little clue for the market to know which way it will go. For CR8 and SPL there were some strong signs that the announcements were going to be positive - when utilising strong research skills and deduction. In my opinion the market is likely over estimating NTI's pass/fail risk as preliminary results are already very positive and Neurofeedback is constantly proven effective in other research based studies where the child has to attend a clinic [1] [2]. The great news is when you find these types of companies and their corresponding charts and the company has multiple large (company face changing) news impending announcments the sharprice does not stay low for very long.

My point is - I believe NTI has a setup similar to CR8, SPL and KNM with NTI's current share price being close to the lowest point before positive impending news changes the way the market views the stock.

Accordingly, I believe NTI's share price will be more than double to 40c within three months representing a 100% plus ROI.

As always do your own research - this is not an indication to buy.


REFERENCES:

[1] Trevisan, A and P, Cavallari. A Portable Sonified Neurofeedback Therapy for Autism Spectrum Disorder Patients - An Initial Evaluation. Journal of Neurological Disorders. AAT Research in conjuction with; University of California. USA. 2013.

[2] Jarusiewicz, B. Efficacy of Neurofeedback for Children in the Autistic Spectrum: A Pilot Study PhD. Pages 39-49. 2008