It is said that a fool and his money are soon parted and if you’re a fool that has been indoctrinated by the recent promotions touting NYXIO Technologies (PINKSHEETS: NYXO) then it’s likely just a matter of time before you see your investment fade to black. Chances are if you have invested in NYXO and really believe that this company is “a leading provider of quality cutting-edge consumer electronics” then you haven’t done your homework and you may be better off without money.
Sure every company is entitled to change their business plan and when things aren’t working it’s only wise to implement a new strategy but NYXO appears to be throwing darts at a board. Take a look at their background and prior operations and you’ll find a company that was originally engaged in the exploration of certain mineral interests in British Columbia, Canada before changing their focus towards the end of 2008 “to the research, development, manufacturing and sales of light-emitting diode (LED) products.”
Apparently part of that changed focus involved the company entering into an Assignment and Assumption Agreement with American Petro-Hunter Inc. on April 14, 2011 in which NYXO acquired for $30,000 all of American Petro’s rights pursuant to a Participation Agreement with Archer Exploration, Inc. to participate in the drilling for natural gas on a prospect located in California. To their credit they opted not to participate in the drilling and the agreement was rescinded but just how committed is NYXO to their LED business.
Well funny enough one month after entering into an agreement with American Petro-Hunter while still refocusing their business on “the research, development, manufacturing and sales of light-emitting diode (LED) products, NYXO took another turn and told investors “our board of directors decided it would be in the best interest of our shareholders to shift business focus from the LED and oil and gas businesses.” This is where management became “a leading provider of quality cutting-edge consumer electronics,” less than six months into the business and they are a leading provider.
What is NYXO providing? That’s really the interesting question here because they have done a fairly good job of introducing products, most recently their OMEGA tablets which are “fully functioning, sleek and compact Windows 7 operating system tablet PCs” that are “compatible with all forms of media, gaming and social networking.” What they’re not compatible with is retailers and while NYXO says they’re working on penetrating the market the tablets are currently only available online.
If you’re a shareholder don’t worry about this minor hiccup, you’re probably familiar with NYXO’s launch of their VioSphere Smart TV last month and the plans to get that in retail outlets as well. Seems like NYXO is having some difficulty getting that integrated flat-screen TV and PC into the mainstream. Given the fact that they are challenging some of the biggest names in the NYSE and NASDAQ, companies like Panasonic, Dell, Sony, Nokia, LG Display, etc. it’s hard to see how they’ll crack the market.
Making matters even more difficult is the fact that in their most recent quarter they acknowledged “as of June 30, 2011, we had cash of $60 and working capital deficiency of $131,420.” NYXO doesn’t even have enough cash to buy their own electronic device, that’s a serious concern.
NYXO can rely on promoters to write material that projects incredible growth in the consumer electronics market and forecast amazing sales figures and even if all of these things were true, they’re true about the industry and it doesn’t mean NYXO will ever see dollar one from the boon. Judging by their history there might be a better chance that they refocus their business strategy and become leading providers of jet skis or electric knives.
Without any logical reason shares of NYXO are currently trading around the 0.74 – 0.80 range on Tuesday but there has been extreme volatility with the stock over the past few days. This is yet another concern for those who have their money in the company. Having hit a 52-week high of 1.13 on Monday they fell to a low of 0.67 today and have really been all over the map. There has been no news driving the trading volume which has remained strong so there are obviously forces moving the shares. This is a company that sank to a 52-week low of 0.05 back in May and while they have managed to boost that share price it has been done without any reports of revenue, market penetration, or innovation; don’t be surprised if the fall is just as quick as the rise.