Nano One Material Corp. a speculative investment

Mar 17th, 2016 – 1 Comment

Not for the faint of heart


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Lou Schizas is an equities analyst, investor, entrepreneur, professor and television and radio personality – and a true believer in the happiness-inspiring powers of capitalism.


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NNO LOGO

Hi Lou,

Please take a look at Nano One.

Thanks,

George

 

Hey George,

 

Thanks for the assignment. This will be my first look at Nano One Material Corp. (NNO TSXV). The company is looking to use its technology to produce cathode materials for lithium ion batteries. The advantages of their process include using lower grade raw materials, a faster production cycle, and it requires many fewer steps in the production process. All of which translates into lower costs, longer life, greater energy storage, and the ability to deliver more power.

Here’s the rub. All those ambitions are being held up by a company with a market cap of $14.7 million. In addition the average daily volume over the last three months is 88,820 shares per day which would imply some liquidity issues for a stock trading below $0.50. Finally you should be aware that the process needs to transition from the lab bench to a pilot plant to ensure that it is scalable.

These factors would put NNO into the speculative portion of your portfolio.

 

 

NNO

The three-year chart tells the tale of a stock that has gone through a reverse takeover of an existing company, a share consolidation, and a name change. The re-organized stock started to make a move higher in November of 2015 when it gapped up and through the 50 and 200-day moving averages.

The advance took the shares to a 52-week high of $0.40 by March of 2016 where the MACD and the RSI generated sell signals.

 

 

 

 

 

NNO2

The six-month chart pulls into focus the pullback from the 52-week high and the sell signals from the RSI and the MACD. At the moment the shares are holding support along the 50-day moving average.

NNO is a story stock so if you like it make sure you understand the speculative nature of this investment. Lithium ion battery technology certainly has a place in the economy given ventures like the Giga Factory that Tesla is building near Reno, Nevada. The question that remains to be answered is if NNO will grow with the sector.

Next time I’ll examine the charts of Dream Global REIT (DRG.UN TSX) for Kevin.

 

Make it a profitable day and happy capitalism!

 

 

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