Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Nanophase Picks Up the Pace

At the beginning of the year, after Nanophase Technologies (Nasdaq: NANX  ) reported that its year-over-year revenues from 2005 to 2006 had increased 32%, I suggested that the company was finally on solid ground and that it appeared primed for growth. Well, the market apparently disagreed and instead issued a big, collective yawn. Since late January, the stock has barely budged and is trading about where it began the year ($6.16).

This could be about to change. Yesterday, the company announced its highest quarterly revenue in company history after bringing in almost $2.9 million. This represents a jump of 45% over 2006's first-quarter figures. Unfortunately, this is the only number management reported, so we don't know how much it was able to improve from last year's Q1 loss of $0.09 per share, if at all.

The reason for my continued optimism, however, is that in addition to its established relationships with leading chemical companies such as BASF (NYSE: BF  ) and Rohm & Haas (NYSE: ROH  ) , Nanophase also continues to build on its portfolio of patents.

Last month, officials announced that the company had been awarded a new patent for "nanostructured compositions." In a nutshell, the patent describes how Nanophase's unique nano-sized particulate materials imbue a variety of coatings with enhanced optical properties. Among the applications for such technology might be transparent coatings for plastics, automotive coatings, and even windows.

This combination of potential new product applications, together with its existing relationships, leads me to believe that this quarter won't hold the company's record for highest revenues for long. In fact, I won't be surprised if the record falls this July when Nanophase reports its second-quarter earnings.

Now, I wouldn't expect the company's stock to grow at a torrid rate, but after languishing below its original IPO price of $8 for the better part of past 10 years, I continue to stand by my earlier prognostication -- the stock appears poised to gradually increase.

Interested in nanotech, biotech, or any other tech? Check out The Motley Fool's Rule Breakers newsletter. You can sign-up for a free, 30-day trial here.

Alternatively, if you're just interested in other Nanophase-related foolishness, you can check out these articles:

Jack Uldrich is the author of two books on nanotechnology, including Investing in Nanotechnology: Think Small, Win Big. He does not own stock in any of the companies mentioned in this article.

Read/Post Comments (0) | Recommend This Article (20)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 525571, ~/Articles/ArticleHandler.aspx, 10/22/2016 12:34:57 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 15 hours ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 3:21 PM
NANX $0.69 Up +0.01 +1.91%
Nanophase Technolo… CAPS Rating: No stars
ROH $78.94 Down +0.00 +0.00%
Rohm and Haas CAPS Rating: **