THE ESSENTIALS OF EXPONENTIAL SHARE PRICE MOVEMENT There are two primary components to moving a stock upwards.
1) A great company with a great product.
2) Broad market awareness of that great company with a great product.
I think we have #1 down in spades. We have a great company with a proprietary product that is revolutionary, in a world where demand for that product is growing exponentially.
However #2, broad market awareness of that great company with a great product, is truly in its infancy. That’s not a bad thing, as it shows us collectively that we are astute enough to be in early, which is where you want to be to get the best price per share. Then, as awareness and understanding by an ever-wider swath of the market comes, the share price vaults forward, eventually in exponential fashion, and we are duly rewarded.
So where are we now? As I’ve said before, we are at the tail end of the early-adopter phase. However you came here to this stock, whether it’s through your own smarts, or your own good luck, you are here. (Sidenote: I’ve always considered both smarts AND good luck to be a required mix) But being here in this stock now, as an early-adopter, know too that you are part of a very small and very select group who know and understand what the company does, what the company has, and the enormous potential that is there. This small and unique group is but a speck of the broader market.
Still not sure you’re an early-adopter? Here’s a simple test. Go up to 10 random smart persons and ask them if they know what CAM is. Or ask them what LFP is. Without even going through the effort, we all know that you’ll be met with a blank stare by close to 100% of the people you ask. At this stage, the masses don’t know this arena at all, as it is just too new. And even worse than that? These same smart people, don’t even know what they don’t know. But it is through these people, the masses, through their blossoming awareness and understanding, that will drive the stock upwards. So how will that understanding come? Given where the company is with their product, and a general growing understanding of the industry mostly through EV's, I see a broadening circle and of understanding coming fairly quickly now, and that’s good news for us, the early-adopters. Here are the catalysts I see as possible in the short to medium term, to effectively broaden participation in Nano stock of a much wider audience.
1) OPERATIONAL FACILITY PROMOTION: Candiac is almost ready to go. Not only is that important in and of itself, but it also becomes a great newsworthy promotional tool, and a good “made in Canada” success story. The story moves from the test-tube (extremely difficult to understand, let alone see) to factory production which is HIGHLY visible and understandable. If Nano plays the cards right here, there is a LOT of free promotion to be had, from Government photo ops, to full stories carried on all varieties of news media. It’s not just the headline that “Candiac is built”. It’s the story of Nano, and what they do, and how that is going to make a massive difference in the world going forward. Then at the appropriate time, follow-up again and broaden the story to include OEM’s lining up, partnerships, and offtake agreements. The only thing better than a good story is a good story revisited...a “how are they doing now” story.
2) ANALYSTS AND FUND MANAGERS: Again, if Nano plays the cards right, the Candiac facility becomes a “come see what we have and what we’re doing” story; a venue for a highly visible and understandable presentation for Analysts and Fund Managers. Analysts are the ones providing the buy recommendations, that are then put out publicly to the masses. Individually, analysts make a difference as people follow these buy recommendations. Collectively, they provide a consensus of opinion, more powerful than any one individual opinion. Fund buying is also important to the stock as funds buy in quantities far greater than individuals. This obviously helps the stock, but also offers further validation of the company. “Well XYZ Funds bought in...it must be good” With the news out yesterday, I would expect that there is now substantial interest from both analysts and Fund Managers. Time this in with the news cycle opportunities of #1 above, and you have an even more potent promotional tool.
I would hope that Nano will facilitate location visits for Analysts and Fund Managers to see first hand what is happening; a full dog and pony show. If a picture is worth a 1000 words, a site visit to a facility that is now unique in the world, is worth far more. The capacity is now there for Nano to impress, in a VERY tangible and visible way, and they should take full advantage of this opportunity. The presentation needs to be polished, and fully understandable. These are bright people, but anyone’s eyes can gloss over if there is too much geek-speak. Keep it strong. Keep it simple.
a) Demand expectations for CAM.
b) Current practices in production (mostly China based).
c) Basics of the IRA, and the potential positive impact for Nano
d) Nano’s One Pot process which offers faster, cleaner, cheaper, and longer lasting CAM.
e) Patent protection.
f) Dual strand revenue streams of production and licensing.
g) Current partnering and OEM interest.
h) Site tour.
Nano has done a great job on their own website in keeping it simple and understandable, so I imagine they get this.
3) NASDAQ LISTING: There has been active talk about this potential, and at this point I think it’s a good thing to pursue. A Nasdaq listing has the power to bring a LOT of new eyeballs to the stock and a LOT of new money. It also generates further Fund interest and participation as there is often greater liquidity, which is something Funds want and need. The recent day that Novonix (NVX on Nasdaq) had, shows this kind of volume on Nasdaq with the stock trading over 7million shares. The TSX is good in and of itself, but by comparison it’s a much smaller pool compared to the U.S. exchanges. The share price needs to be above $5.00 U.S. to get a listing to start, so Nano has some work to do. Having said that, I think all the positive news expected in coming weeks and months will get this job done, and the application to Nasdaq will be made. This I see as an extremely positive event, possible in the 1st quarter of 2024.
All of the above, combined, certainly has the potential to bring the stock forward to the masses. And the masses WILL buy, provided Nano has the marketing in place to deliver the message in a tangible, understandable manner. It’s important at this phase in the company’s development that they recognize the full need for expertise and guidance in this area. This isn’t about test-tubes. This isn’t about facility scaling decision making. It’s marketing, which is now coming into full view as a company focus in-and- of-itself. And not only is this marketing important, but it’s so important for the company to get it right. They can, and should, nail it.
As an early adopter, I’m THRILLED to have found a great company with a great product. As the story continues to develop, I’ll be equally thrilled to now see ever-widening masses come to the stock. Imho, this is going to be one powerful ride upwards over the coming months.
Enjoy.