Post by
Starsearcher80 on Feb 23, 2023 12:23am
CRITICAL MASS AND THE UPWARD TRAJECTORY FOR THIS STOCK
With any "new" stock, and I put Nano in this category because the company is still vastly unknown to the broader market, there is a cycle of events that happen that bring a stock from obscurity to full market awareness. And of coure accompanying this transition from obscurity to awareness is a radical shift in the price of a stock. It's not that the company suddenly became "better" in some way. To the contrary, it's simply that the market finally became aware of the enormous potential that was actually there all along. We, here now as the early adoptors, already are fully aware of this potential, and have been wise enough to buy in the midst of this obscurity, and it will most certainly be us who reap the rewards as the market moves into full awareness.
But what is the path to that critical mass, where the market finally and fully "wakes up", in this case, to Nano's potential? This path is more prescribed than you might think.
First of all, there has to be real potential in the stock and a story that is understandable. Nano has both of these components down in spades. In a nutshell, Nano is going to be front and centre of ENORMOUS growing demand over the next decade, which is fully starting now, with a proprietory process that is faster, more cost-efficient, greener, and longer lasting. Game-changing technology? Absolutely. They full potential to be a true disruptor in this space.
So with Nano covering these first two components well, what is that path to acheiving critical mass that leads to full market awareness? Here are the steps as I see them.
Stage One: Eye catching news and public awareness.
Personally, I think the news yesterday was exactly the kind of news that sparks initial interest in the stock, and I think we're now going to be seeing a lot more of this type of news. It brings eyeballs to the stock. It's also why I'm absolutely thrilled with the visit by Minister St-Onge tomorrow to the company. Note that the media is given advanced notice and is invited, which then leads to news stories that help to bring even further awareness to the stock. These kinds of events, along with an exciting and understandable story makes for good news coverage. It also signifies that there is enough "meat on the bones" with what stage the company is at, to start a promotional phase in the company's growth.
Stage Two: Analyst Coverage
Nano currently has no analyst coverage, but imho this will now be changing in the near future. I would expect after yesterday's news release that the stock will now be on analysts' radar, which will then lead to coverage and a series buy recommendations. I have a certain disdane for analysts, as I always consider them a bit late to the party. In my own mind (and I know this is wrong), they too should spot things early, as the early adopters here have done. But then again, if that did happen, the early adopters wouldn't be at the front of the line, so I won't complain too loudly. Anyway, this analyst coverage is important, as a lot of investors look to this coverage for their recommendations, which then leads to a lot of buying of the stock. This buying then often triggers a flurry of secondary buying as investors see the stock starting to move, as the gains become noted by an ever-widening audience.
Stage Three: Fund buying
There has actually been some fund buying already, which I'm actually surprised to see. For Funds to be there at all at this stage shows a growing awareness of the stock which I'm thrilled about.
To date:
U.S. Global Investors World Precious Mineral Fund: 3,000,000 shares.
Robecosam AG: 3,000,000 shares.
Green Benefit Global Impact Fund: 1,079,655 shares
Schroder ISF Global Energy Transition Fund: 656,219 shares
US Global Investors- Global Resources Fund 200,000 shares
Now, while this Fund buying is very encouraging, I would expect there to be a LOT more Fund buying as the awareness grows. This Fund buying has the potential to take a LOT of shares off of the table, and propel the share price strongly.
Stage 4: Critical Mass
This is the most exciting stage for a stock, and is the convergence of all 3 of the previous stages continuing to fire not individually, but instead now simultaneously. In essence, the combination of all 3 stages firing together create their own feedback loop. More awareness brings more analyst coverage, which brings more buying interest. More Funds become involved, taking more shares off the table, which brings more mass media news coverage as the shareprice advance becomes a story in and of itself.. It is this critical mass stage that often sends stock into the stratosphere. At this stage, EVERYONE wants a piece of the action.
Now, the question is, does Nano have the potential to reach that critical mass stage? Personally speaking, I think it absolutely does. But again, we are early in the process, currently only at stage one. I think there is potential here for the Nano story to ramp up quickly, with a lot of share-price advancement as the company travels through all of the stages. As for that critical mass phase, I consider that potential to be about 1 year away which is really no time at all, and certainly accelerated by the keen media attention already focused on the ev and battery space.
Finally, I want to point out that there will be some enormous share price gains in EACH of the stages. That final stage of reaching critical mass is just the last stage in the overall process. Yes, this critical mass stage is where I've seen stocks go absolutely stratsopheric, and at that point, often beyond where they really should be. Of course it's at that point where it's time to sell, making many of the early adopters here extremely wealthy.
Imho, this is going to be one stunning ride up for Nano. Enjoy everyone. Imho, there is a LOT of money to be made here.