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2 Small Tech Stocks That Can Provide Crazy Returns

By Jose Najarro - May 22, 2021 at 11:00AM

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I believe these two growth stocks have high risk, but it comes with high rewards if the businesses are executed correctly.

In today's video I look at the growth stocks Himax Technologies (HIMX -0.57%), and Nano Dimension (NNDM 0.00%). The stock prices for each of these companies has dropped between 30% and 60% from its 52-week high. Below I share three reasons to add each stock to your watchlist, but it is important to note these stocks are very volatile.

Three reasons to add Himax Technologies to your watchlist

  1. Himax is in the semiconductor industry and focuses on sensors used in innovative technologies like AR/VR, smartphones, smart home appliances, and much more. 
  2. Himax reported 67% year-over-year (YOY) revenue growth and 12% quarter-over-quarter revenue growth for the first quarter of 2021.
  3. Himax has exceptional fundamentals in its trailing 12 months. It is profitable and positive in cash flow from operations, and it has more cash and short-term investments than debt. 

Three reasons to add Nano Dimension to your watchlist

  1. Nano Dimension is a company in the 3D printing market. Its current product is the DragonFly LDM, a 3D printer that focuses on printing electronic circuitry. 
  2. For the first quarter of 2021, Nano Dimension reported roughly $1.395 billion in cash and cash equivalents and bank deposits. The company currently has a market capitalization value of $1.6 billion. However, it is essential to note that this company is still in its early stages and needs a strong balance sheet.
  3. Currently, Nano Dimensions does not have meaningful revenue, as it is in the early stages of product development. Still, its management team has shared its current plans. The three points of focus are sales, product development, and mergers and acquisitions.

Click the video below for my full thoughts. 

*Stock prices used were the closing prices of May 20, 2021. The video was published on May 21, 2021. 

Jose Najarro has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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Stocks Mentioned

Himax Technologies, Inc. Stock Quote
Himax Technologies, Inc.
$7.00 (-0.57%) $0.04
Nano Dimension Ltd. Stock Quote
Nano Dimension Ltd.
$3.53 (0.00%) $0.00

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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