Graphene Stock: Supply and Demand of this powerful product.
If you’re one of the many savvy investors out there who are asking, “How do I invest in graphene?” then you’re not alone.
One of the most enticing investment aspects of this revolutionary material is that it is a physical good. It’s not a synthetic financial product, there is no gambling on derivatives, bundling of securities, or dark pool trading. Investors actually have something new and tangible to look at here and that doesn’t happen very often.
Graphene Companies to Invest In:
Will use it for he form of a very thin, nearly transparent, chicken-wire resembling sheet which is just a single atom thick, and for it’s strength. It is incredibly strong and durable in reference to its extremely low weight. In fact, graphene is about 200 times stronger than steel, which means that graphene stocks could Rival a very major commodity.
Yes, you did read that correctly. Graphene is also a highly efficient conductor of heat and electricity and somewhat of the scientific world’s ‘old wives’ tale’. You see, graphene has been the subject of theoretical proposals and hypotheses for decades, but it was never produced in a lab until 2004. It wasn’t until laboratory techniques, which allow for the creation of larger graphene sheets, advanced far and fast enough to catch up with theorems and ideas that mass-production quality graphene became a reality.
Everyone is really holding onto Graphene Stocks, because using those techniques, including a specific roll-to-roll production process, are standard operating procedure graphene is poised to become the secret investment weapon of savvy investors worldwide.
Graphene utilization techniques have evolved rapidly over the last decade. Graphene has proven to be surprisingly easy to isolate, making intensive research and development far easier and cheaper. As of 2014, graphene is not used in commercial applications but many have been proposed and are under active development in areas including electronics, biological engineering, filtration, lightweight/strong composite materials, photovoltaics and energy storage.
As you can see, it’s pretty clear what all the buzz is about. Many are calling graphene the strongest manmade material on the planet. Stock investors excitement surrounding nanotechnology during the early years of the 21st century, graphene is the shining manifestation of the validity of said excitement.
It has taken time, but graphene clearly represents the evolution of the nanotechnological revolution which has, inexplicably, flown under the radar of nearly all major media outlets and strangely; financial advisory firms and media outlets.
Before discussing potential investment opportunities or strategies, let’s look some quick facts to help the reader familiarize him or herself with graphene.
How to Invest in Marijuana: Investment Properties since 1975
How to Track Marijuana Stock Performance
Are you interested in watching the marijuana industry grow before you make any moves? Then it might be a good choice to simply sit back and watch. However, you shouldn’t take this to mean that you should be passive; no, instead take an active role in understanding what’s going on in this particular stock segment.
You can do this by picking some of the stocks you believe will perform the best in the coming months. Many online stock brokers offer automated “stock watcher” options that allow you to track the stocks that have gained your interest. Take full advantage of these features! Watch the news and see how your stocks ‘ value responds to the new. Every day, something new is happening in this industry; it’s important to not only understand the who of the industry, but the when. Getting your timing right is one of the most underrated aspects of investing.
The “Marijuana Index”
Don’t have the time to look at the individual stocks? You may want to consult the “Marijuana Index.”
This index is not exactly the S&P 500, but it does do a good job of showing you where the marijuana industry is at. If you’re interested in the industry but haven’t looked at individual stocks yet, then you may want to pay particular attention to this ‘index’ and keep up on the latest news as well. Understanding how the “index” reacts to various news events can really help you understand market timing.
It’s in this index that you can identify potential stocks to buy, as well. Doing your research with this index as a baseline or a guide, you’ll be able to identify all sorts of companies that you hadn’t thought of, perhaps even when you were doing your serious research into the industry.
Investing in Lithium: The Energy Giants
This metal is perhaps best known for its use in lithium batteries common in all sorts of electronics devices.
Lithium is a soft, silver-white metal that is highly reactive and flammable. Its unique chemical profile makes it the lightest metal and the least dense solid element. Lithium has several other industrial applications as well, including use in heat resistant glass and ceramics, alloys used in aircraft, and lubricating greases.
As an investment, lithium makes for an enticing play on the growing demand for energy efficient technologies. Lithium batteries, which are far more efficient than traditional nickel-metal hydride batteries, are seeing an increase in demand from the automobile and electronics industry alike.
Limited supply is another appealing factor that makes this metal a potentially lucrative investment. For those looking to invest in lithium, there are a number of options in the marketplace. While physical exposure is not possible, investors can buy a number of companies which are engaged in some aspect of lithium production. Lastly, investors can also purchase a lithium ETF which offers exposure to a basket of commodity producers.
How to Buy Lithium Stocks
There are a wide variety of companies who rely on lithium for a substantial portion of their revenues. One of the biggest is Sociedad Quimica y Minera (SQM) which is a Chilean producer of specialty plant nutrients and chemicals that maintains lithium production operations. Philadelphia-based FMC Corporation (FMC) is a diversified chemical company which also focuses on this rare metal. Rockwood Holdings (ROC) is another prominent manufacturer which is focused on the production of lithium chemicals.
How to Buy Lithium ETFs
Exchange traded products can be an efficient way to access lithium. The most targeted product is the Global X Lithium ETF (LIT), which offers investors exposure to the performance of the lithium industry. This ETF holds a global portfolio of companies engaged in everything from lithium mining to exploration and lithium-ion battery production.
Tesla Motors, Inc.’s (TSLA – Analyst Report) decision to build a $5 billion Gigafactory to meet its requirement of lithium-ion battery packs brought glaring focus on the shortage of supply of this emerging energy storage technology. Lithium-ion batteries are used by many auto manufacturers, including General Motors Co. (GM – Analyst Report), Navistar International Corp. (NAV – Analyst Report), BMW, Daimler AG (DDAIF) and Ford Motor Co. (F – Analyst Report). They are also used in cellphones, laptops, and other electronic devices as well as in the aerospace and defense sector.
However, the market for lithium-ion batteries has a lot of untapped potential. Tesla, for example, is facing problems in meeting the demand for its electric cars due to shortage of battery packs, which is limiting its production capacity. This was one of the chief reasons behind its decision to build a large-scale factory to produce lithium-ion batteries in collaboration with various partners. The electric carmaker’s Japanese battery pack supplier, Panasonic Corp. (PCRFY), is widely believed to be one of the partners.
By 2020, Tesla expects the annual lithium-ion battery production of the Gigafactory to exceed the global production in 2013. The factory will produce enough battery packs to allow Tesla to build around 500,000 electric cars annually by 2020.
However, Tesla’s Gigafactory will not start production until at least 2017. Till then, the focus will be on other lithium-ion battery manufacturers. Thus, it would be a good idea to invest in some companies that manufacture these batteries.
Two of our Favorite Stocks to Watch:
Arotech Corp. (ARTX) has two business divisions – Training and Simulation and Battery and Power Systems. The Battery and Power Systems division manufactures and sells Lithium and Zinc-Air batteries and chargers for the Military.
Arotech reported a 150% positive earnings surprise in the third quarter of 2013. This Zacks Rank #3 (Hold) stock is expected to report 100% and 411.11% year-over-year growth in earnings per share (EPS) in fourth-quarter and full-year 2013, respectively, based on the Zacks Consensus Estimate of 2 cents and 28 cents, respectively.
Arotech has a price-to-book (P/B) ratio of 1.3x, significantly lower than the industry average of 3.1x. Even the price-to-sales (P/S) ratio of 0.6x is lower than the industry average of 0.9x.
EnerSys (ENS – Snapshot Report) is the largest manufacturer, marketer and distributor of industrial batteries in the world. It also manufactures and distributes chargers, power equipments and battery accessories and provides aftermarket services for industrial batteries. The company recognizes the growing market share of lithium-based battery technology in the aerospace and defense sector, and is thus trying to develop products based on lithium and other new energy storage technologies to increase its market share in the aerospace and defense sector.
EnerSys, a Zacks Rank #2 (Buy) stock, reported a positive earnings surprise in each of the trailing 4 quarters with an average beat of 3.44%. The Zacks Consensus Estimate for the company’s fiscal 2014 (ending Mar 31, 2014) earnings is $3.87 per share, reflecting an estimated 9.01% year-over-year growth.
EnerSys has P/B ratio of 2.6x, far below the industry average of 6.5x. Its P/S ratio is 1.5x, also lower than the industry average of 1.9x. Long-term EPS growth rate for the stock has been pegged at 15.3%.
How to Invest: Graphene Investing
Graphene Investing: The Real Benefits of Graphene
Andre Geim and Konstantin Novoselov, both of the University of Manchester were credited with the discovery of graphene and as a result won the 2010 Nobel Prize in Physics.
Graphene is 200 times stronger than steel and more robust than a diamond. You can see where the Graphene Investment Opportunities can be so relevant. As used here robustness refers to, “the ability of a structure to withstand events like fire, explosions, impact or consequences of human error, without being damaged to an extent disproportionate to the original cause.”
Read More on Graphene, from Extremetech.com
Understand What Graphene Is: Before you Invest
Anyone familiar with the robustness of diamonds will be more impressed by this fact, than the “200 times stronger than steel” line that would impress the layperson more. This is worth keeping in mind as we read on.
Diamonds and Graphene
Though unproven, reasonable theoretical applications include the creation of synthetic plasma and various potential cancer treatment methods.
What you didn’t know about Graphene Stock, is it’s companies will likely put the power of up to 10,000 mainframes into the typical ‘tablet’ or ‘smartphone’ at some point in the near future.
Scientists also theorize that graphene could help clump together radioactive waste, making disposal remarkably safe, clean and efficient. During tragedies like the Fukushima meltdown, graphene could not only serve a valuable economic, but priceless social benefit.
Regulations on Graphene
This is an important factor to note because it could lead to a far lighter regulation note being placed on graphene-based products as they’re manufactured and put into mass production. It means better power, and better Eco-Friendly Products, Graphene Investment Opportunities really span a broad range of businesses.
Perhaps the biggest cause of excitement surrounding graphene is the active attempt by a slew of scientists to replace the silicon inside of semiconductor wafers with graphene. We can only imagine what this will do to the “Silicon Valley” moniker.
For this reason, some have taken to calling graphene “Moore’s Murderer.” The reference is to Moore’s Law, a historical observation of computer hardware claiming chip performance would double every 18 months. If graphene can do what most knowledgeable minds seem to think it can, chip performance could theoretically grow exponentially overnight, thereby making Moore’s Law as obsolete as blind faith in a flat planet.
Graphene is already a part of our daily lives. Graphite in pencils, batteries, brake linings, foundry facings, charcoal and lubricants…but it is also the basic structural element of other allotropes, including graphite, charcoal, carbon nanotubes and fullerenes.
The properties of graphene are so amazing that they have the potential to revolutionize multiple industries. Sensors, batteries, computing, touch screens, electronics, water filtration and salinization, organic solar cells, energy generation and storing, medicine and much more.
As the world’s thinnest material graphene is considered a two-dimensional object, while also being flexible and transparent. It also conducts electricity more efficiently than a semiconductor and is an exceptional heat conductor.
And though the temptation is to look towards technology and manufacturing, the medical devices, biotech and healthcare markets, are all venues where the carbon-based Graphene may have the most investment impact. As we all know, tech and bio stocks tend to do very well in strong performing markets, so just imagine how well such stocks could have performed in recent years with Graphene-backed products.
The standardization of Graphene as a medical/medicinal component, and its potential to enter the human body without damaging the immune system would give it a remarkably beneficial characteristic as a drug delivery mechanism. Graphene also has properties which can aid in bone-rebuilding processes and create the biological structures needed to create organs and tissues.
But here’s an example of what we are all most interested in, the investment value and the rarely-seen, always-profitable synergistic link between government and industry. Namely, the European Union recently awarded Nokia (NYSE: NOK) with a $1.35 billion grant to research the commercial applications of Graphene. Can anyone really imagine how much a company like Phizer or Johnson & Johnson may get from the US government to research healthcare applications of Graphene?
The point of the example is to illustrate that when a material has the ability to affect positive societal change and advancement, as well as being worthwhile for the investment set, a far greater likelihood of success will emerge.
Rarely does an investment opportunity come along that seems to have everyone’s support and very rarely does such an opportunity result in anything but profits to investors.
Graphene Investing has taken on so many industries, these should all be very positive signs. It truly is strange that more investors aren’t talking about Graphene, but at a time when information flows so freely and is so readily available, and you understand What it is capable of, you will see the rise in potential Graphene Stocks.
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