I will be examining Natcore Technology Inc. (NXT TSXV) instead of Innergex Renewable Energy Inc.(INE TSX) as previously announced. The reason is that INE is not a pure play on solar energy. I will inspect companies with a diversified portfolio of alternative energy assets at another time.
NXT is driven to increase the efficiency of solar cells while lowering their cost. The company has proprietary nanotechnology that they are applying to their mission. In addition they have developed techniques making use of laser processing, black silicon, and quantum dot solar cells. NXT has 65 patents, some granted others pending, that underpin their efforts.
An audit of the charts will help identify the opportunities and risks associated with this stock.
The three-year chart depicts a stock that has been on a steady retreat since the beginning of 2014 when it traded near $1.20. There is an established downtrend line that has provided resistance to every advance along the decline. The shares have offered a number of opportunities to trade for profit depending on an individual’s investor profile.
Another factor to consider is that NXT has a market capitalization of $23.6 million. In addition average daily volume over the last three months is 75,967 shares. Both of these metrics would define the stock as speculative.
The six-month chart illustrates the downtrend that has dominated since May and the resistance along the moving averages. At present there are no signals that we can expect a trend reversal in the near future. I think that NXT may be interesting in time but not at this time.
Next time Etrion SA (ETX TSX) will be evaluated.
Make it a profitable day and happy capitalism!