Boston Globe and WSJ write about the rising prices of nanotech companies.
Boston Globe: “The nanotech stock boom resembles past biotech surges because many shares have soared without much in the way of company revenues. It looks a little like the telecom stock boom a few years ago because the technology might improve on old products by dizzying degrees but it faces practical, real-world obstacles…Just like the Internet, biotech, and telecom, nanotechnology almost certainly will produce valuable new things, eventually. Making money off them may be another matter…Nanotechnology already enhances common products today, from pants that don’t wrinkle to lighter carbon graphite tennis rackets. But home-run potential lies in dramatically smaller integrated circuits and improved medical diagnostics and therapeutics.”
WSJ: “Nanotechnology favorites such as Nanogen Inc., Nanophase Technologies Corp. and Veeco Instruments Inc. all have doubled, tripled or more during the past year, even though they have no earnings and, for the most part, minimal revenue…Still, there are reasons to focus on the sector. In some ways, companies getting a head start on nanotechnology have a leg up on the Internet entrepreneurs because there are real barriers to entry in this world, as opposed to the Internet. Three guys with a garage and a business plan could get investors enthused during the Internet bubble, but real expertise is needed to get a nanotechnology company going.”
Nanotech is, according to WSJ, “a way to develop a substance, like teflon, or a component, like a computer chip, with building blocks as small as 10 nanometers (a nanometer is one-billionth of a meter). The idea is that once the substances are that small, they can be manipulated more effectively and sometimes aren’t as affected by forces such as gravity, giving them a range of new uses. In coming years, companies will use nanotechnology to improve everything from computer hard drives and chips to drugs and even suit pants.”