Even nanotech companies that can demonstrate functional products lack the ability to scale up for mass production. However, like any business sector, there are a few key ways for ordinary investors to deposit their money into nanotechnology , with the chance to make better than average returns. Naturally, each investment carries its own risks. However, choosing the right one can be like finding a needle in a haystack.
Not only will some of the best nanotech ideas fail to make success in markets, but shareholders always face the additional risk that the stock market will bear little resemblance to what is happening in the real economy. This means that while nanotechnology companies may be making healthy profits, a bear market can still wipe out any hard-fought gains.
Rather than lumping an investment into one or two single companies, many people prefer to spread their risk in a mutual fund. A mutual fund consists of investments in multiple stocks and other securities. Mutual funds typically consist of investments in a specific market, such as technology, biotechnology, or science research.
You may be able to find a mutual fund that holds stock in several companies with nanotechnology projects or ambitions. Read on to see if investing in nanotech stocks could work for your portfolio. Nanotechnology is the manipulation of matter on a nanoscale. A nanometer is one-billionth of a meter , or approximately one,th the width of a single human hair.
This micro-scale industry has the potential to produce macro returns for savvy investors. What has emerged out of a boom-and-bust market is an industry focused on strategic long-term business plans and in-demand innovative products.
Many firms get steady revenue from nanotech products, which they reinvest in the market to drive innovation.
Used in dental restoratives like fillings, crowns and orthopedic brackets , and brightness-enhancing optical films which make LCD displays bright and clear , nanotech has a diverse range of uses. With an anticipated compound annual growth rate of around Although the dramatic anticipated growth rates of the mids are a thing of the past, what remains is a solid market that consistently produces exciting, far-reaching and potentially transformative products.
With the nanotech market poised for growth, nanotechnology companies of all sizes may benefit in this flourishing industry. Here are a few nanotech stocks investors may want on their radar:.
Taking all of the above into consideration, would you invest in nanotech stocks? Which ones would you choose? Tell us your thoughts in the comments. And while there have been some manufacturing delays, Nano-X expects to ship 1, devices in , possibly more. Yes, that's right -- revenues! And what's wonderful about the biotech sector is that when a company receives the go-ahead from the FDA, what was once a big negative the regulatory roadblock becomes a big positive.
The FDA process keeps many competitors at bay, and often gives a biotech company a monopoly or near-monopoly for years and years. If Nano-X receives its FDA clearances as expected, the tiny upstart will have to compete with giant legacy players in the X-ray market. Despite its small size, Nano-X has big advantages in that regard. That's because Nano-X has made an amazing scientific advance that has gotten a lot of investors excited about the stock.
Specifically, the company has discovered a new way to power up the X-ray. The source technology for an X-ray has not changed since Wilhelm Rontgen discovered the X-ray over years ago. The process involves heating up a metal filament to 2, degrees Celsius to produce the electron streams necessary for an X-ray. Nano-X has discovered a cool way to produce the electrons without all that heat, using nanotechnology. The company's X-ray device is powered by million nano-cones on a silicon chip about the size of your fingertip.
Without having to produce massive heat to run the X-ray, the company's solution is a lot smaller and a lot cheaper.
Nano-X's management believes that this low price will dramatically increase the use of X-ray technology around the world.
What makes investors really excited is the company's business plan. Nano-X plans to deliver its devices at cost or below cost and make money on the use of the device.
Nano-X will get paid a percentage every time a device is used. So the company will have recurring revenue streams, much like software-as-a-service SaaS companies enjoy today. In the first wave of deployments, Nano-X expects to place 15, devices out in the world by Is this stock a sure thing? Not at all. The company might fail -- it happens all the time.
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