Comments on: Nanotechnology investing: the multi-decade roller coaster http://www.foresight.org/nanodot/?p=2298 examining transformative technology Wed, 03 Apr 2013 18:23:47 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: Teleos http://www.foresight.org/nanodot/?p=2298#comment-30465 Teleos Sun, 20 Aug 2006 15:29:57 +0000 http://www.foresight.org/nanodot/?p=2298#comment-30465 Permit me to be a contrarian and say that I think it is a GREAT time to be an investor in nanotech stocks for several reasons: 1. There are few investors involved and the field requires specialized knowledge. the markets are efficient because there are so many talented people making the market. The only places one can reasonably expect to realize abnormal gains (i.e. "alpha") are EXACTLY in market segments where lack of competition and specialized knowledge permit one to leverage their unique talents. In fact, standard financial theory suggests that this may be some of the best time ever for investors with specialized knowledge to realize gains. 2. Volatility represents opportunity. The fact that the article cites tremendous volatility should attract, not repel investors. I point out that the two classes of investors interviewed were precisely the type of investors that really have no business putting money to work in publicly traded nanotechnology stocks- one a long only fund with a history of Internet, seminconductors and network equipment and services, and the second, a venture capital company that has no clue about the public markets. I think that hedge funds that can benefit from a highly volatile sector and can access specialized research stand to make good money from publicly traded stock by being short as well as long. 3. The majors are getting smart. They big investors are hitting the books and know that this represents the next wave of innovation- and they can be patient. All in all, what are you going to do as a growth investor? Keep investing in wireless chips manufacturers selling into a market that decline in price 20%+ annually? Face it- much of the "tech market" is rapidly maturing and headed toward normalized growth rates. To be a true growth investor going forward, you have got to look at the cutting edge and identify a rational strategy to invest- otherwise you are simply another one of the countless investors dedicated to mediocrity. Permit me to be a contrarian and say that I think it is a GREAT time to be an investor in nanotech stocks for several reasons:

1. There are few investors involved and the field requires specialized knowledge. the markets are efficient because there are so many talented people making the market. The only places one can reasonably expect to realize abnormal gains (i.e. “alpha”) are EXACTLY in market segments where lack of competition and specialized knowledge permit one to leverage their unique talents. In fact, standard financial theory suggests that this may be some of the best time ever for investors with specialized knowledge to realize gains.

2. Volatility represents opportunity. The fact that the article cites tremendous volatility should attract, not repel investors. I point out that the two classes of investors interviewed were precisely the type of investors that really have no business putting money to work in publicly traded nanotechnology stocks- one a long only fund with a history of Internet, seminconductors and network equipment and services, and the second, a venture capital company that has no clue about the public markets. I think that hedge funds that can benefit from a highly volatile sector and can access specialized research stand to make good money from publicly traded stock by being short as well as long.

3. The majors are getting smart. They big investors are hitting the books and know that this represents the next wave of innovation- and they can be patient.

All in all, what are you going to do as a growth investor? Keep investing in wireless chips manufacturers selling into a market that decline in price 20%+ annually? Face it- much of the “tech market” is rapidly maturing and headed toward normalized growth rates. To be a true growth investor going forward, you have got to look at the cutting edge and identify a rational strategy to invest- otherwise you are simply another one of the countless investors dedicated to mediocrity.

]]> By: Tome http://www.foresight.org/nanodot/?p=2298#comment-29703 Tome Tue, 15 Aug 2006 12:51:24 +0000 http://www.foresight.org/nanodot/?p=2298#comment-29703 Hello Christine, I agree with you , It is not a happy time for all involoved with the IPO of Nanotechnology.Nanotechnology is an IPO in and of itself. Anyone who by chance just happens to come across this new technology quickly learns the immense complications involved. The average Joe & even if your a brain of sorts does not mean that you will be able to figure the end result of any new issue.It involves evaluating of sorts the cause & effects, that keep cross referencing to another science or industry . What it takes is a comprehensiion of the kind that unless your a brain (Einstein or better) all you got to work with is your wits & logic.The problem with the Academics of all this is that IPO's are in the public sector and it is the public who is least educated. The Genie is out of the bottle, and as such. IPO's will continue to be issued. What is needed is a cooperative effort of Academia, private & public companies & industry to create a Web explaining the science of IPO's , keeping it as simple as possible(if that's possible) so that the Public IPO of Nanotechnology can make a more educated decision to buy or sell. But who out there is smart enough to do that, and who would want to, not the powers that be I'm sure! Just one more thing about this new & exciting field of Nanotechnology which holds posssibilities beyond our comprehesion is the X factor in all this. At the start of public awareness there was mention of something described as "Goo", and in some sectors of Academia it was explained away. Well let me say now for all the Einstein's out there that "Goo" is still a possiblity, now & in the future, for as long as man exists. So tread likely, and maybe we'll succeed in doing something great for mankind. Don't be greedy about it , and most of all remember the "ID" Just A Though TM Hello Christine,
I agree with you , It is not a happy time for all involoved with the IPO of Nanotechnology.Nanotechnology is an IPO in and of itself. Anyone who by chance just happens to come across this new technology quickly learns the immense complications involved. The average Joe & even if your a brain of sorts does not mean that you will be able to figure the end result of any new issue.It involves evaluating of sorts the cause & effects, that keep cross referencing to another science or industry . What it takes is a comprehensiion of the kind that unless your a brain (Einstein or better) all you got to work with is your wits & logic.The problem with the Academics of all this is that IPO’s are in the public sector and it is the public who is least educated. The Genie is out of the bottle, and as such. IPO’s will continue to be issued. What is needed is a cooperative effort of Academia, private & public companies & industry to create a Web explaining the science of IPO’s , keeping it as simple as possible(if that’s possible) so that the Public IPO of Nanotechnology can make a more educated decision to buy or sell. But who out there is smart enough to do that, and who would want to, not the powers that be I’m sure!

Just one more thing about this new & exciting field of Nanotechnology which holds posssibilities beyond our comprehesion is the X factor in all this. At the start of public awareness there was mention of something described as “Goo”, and in some sectors of Academia it was explained away. Well let me say now for all the Einstein’s out there that “Goo” is still a possiblity, now & in the future, for as long as man exists. So tread likely, and maybe we’ll succeed in doing something great for mankind. Don’t be greedy about it , and most of all remember the “ID”

Just A Though

TM

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