This is my own personal research/opinion on the potential upward momentum of this particular stock. Please always do your own research and treat this as theory crafting at most
CYMAT TECHNOLOGIES LTD. (Cymat Advanced Materials) TSXv: CYM (CYM.V)
Fast facts:
Cymat Technologies is an advanced/experimental materials company based primarily out of Mississauga, Canada. Cymat produces a unique experimental material they dub "Stabilized Aluminum Foam" AKA SAF. This material is a porous, ultra light, ultra low density aluminum textile structurally similar to a sponge in appearance, but with spectacular structural strength properties despite its low weight. Cymat's SAF has potential use in a number of industries, of specific interest to us are architectural, automative, and military.
One-year Yahoo! Finance Chart
Shareprice: $0.230
TTM Revenue: $1,687,000
Market Cap: $10.164M
52-Week Range: $0.16-0.31
Cymat Technologies is a very small-cap company with a very unique product applied to multiple different industries. Currently their best performing application is with their "Alusion" line of Architectural and Design panels. For several years Cymat has provided their "Alusion" line for contemporary architectural products. Its strength, rigidity, corrosion resistance, and extreme lightweight has been found desirable on a number of architectural products, including in the 9/11 Memorial Library. This line of products have generated most of the cash flow for the company over the years, as its aesthetic is uniquely contemporary and difficult to replicate through other means. That being said, selling SAF panels for artistic/architectural purposes is not what makes this company a compelling buy.
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Cymat Technologies "SmartMetal" lines include SmartMetal Automotive and SmartMetal Military. These are the future moneymakers for this company. As it turns out, while SAF may be visually appealing to certain contemporary architecture fans, its functions as a novel material are vastly more interesting than its form. Cymat's SmartMetal Automotive division is currently working with Tesseract Structural Innovations to develop a unique "Uniform Deceleration Unit" (UDU), capable of being fit into the wheel well of virtually any light passenger vehicles to drastically reduce crash force, thereby also reducing impact shock and intrusion of vehicle components into the passenger space. Cymat's SAF material absorbs more energy than any other approach per unit of added weight, making it a spectacular innovation for improving vehicle safety at a low cost and without hindering vehicle performance. The Tesseract UDU using Cymat's SAF is currently patent pending but has won awards in Global Automotives.
This partnership between Cymat and Tesseract is new as of October 2020 and stands to produce substantial revenue for both companies should marketing campaigns to automative manufacturers take flight.
2. The Big Kahuna and catalyst for share-price explosion moving forward: Cymat Technologies SmartMetal Military. As previously mentioned, Cymat's SAF meterial is extremely lightweight, can be formed to specification, and offers exceptional strength on a pound-for-pound basis. These properties make it highly desirable for military applications, specifically for lightweight/high-mobility vehicles in need of IED protection. Traditional roadside IEDs are difficult to mitigate as the undercarriage of light vehicles are challenging to protect without adding significant weight and reducing performance considerably. SAF with its spectacular shock-absorbing properties at low weight make it an incredible innovation for lightweight anti-IED defenses. Structual IED defenses are a $50m worldwide industry, and Cymat has a pending purchase agreement with the Singaporean Military for 100 kits of their SAF SmartMetal vehicle defense system, expected to close in early 2021 at roughly $50,000 per kit. That's $5m in revenue expected to be finalized from a single Military contract in Q12021. A reminder once again that this company has a current market cap of barely $10m. A standard 10x annual revenue based calculation could bring this market cap to over $50m with a single sale this year. That's an imminent opportunity to 5x a current investment.
In addition to the above, Cymat Technologies is also expecting to close a sale in partnership with Nobel Sport and the French Armed Forces for hundreds of thousands of custom non-lethal rubber bullets with an SAF core. Traditional rubber bullets are unpredictable and difficult for law enforcement and riot prevention teams to aim, leading to significant risk of collateral damage and injury to unintended victims. Cymat's low-weight SAF cores offer stability to non-lethal rounds making them more predictable and better tools for riot control.
Company Outlook: I wanted to start this series with a bang and Cymat Technologies is a great company, in my opinion, to shine light on first. It has a very low market cap and a single unique and transformable product with a variety of interesting applications. With the architectural and design business of their Alusion lines, Cymat expects to be able to support their R&D of further applications without the need for further financing. With a $5,000,000 contract waiting to finalize, this company is on the verge of a potential share price explosion. With very little attention this company is an absolute Dark Horse. Trading below a 52-wk high of 0.50, it is currently unavailable on WealthSimple, but it should be available anywhere else that TSX.V equities are traded.
Timeline: 6-12 months before lift-off
Price Target: $1.00-1.50
Catalysts for Growth: Singapore Military Contract signing, French Armed Forces Purchase Agreement, Brokerage Inclusion.