Nanophase Technologies Corporation (NASDAQ:NANX
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) flew up yesterday and reached the 52 week peak, rising by 25% and closing at $1,90 for a share. Investors have appreciated the improvements of the company's financial results and are anticipating realistic chances for more enormous springs.
The stock did not give many hopes for a substantial increase this year, as it moved around $0,.0 or lower and although indicating some slight upward trend, never managed to go over the $0.90 barrier until the end of this month. The financial reports for 2009 filed yesterday, seem to have changed the mind of investors.
Nanophase Technologies still reports decreased revenues for the last year, though there is significant improvement in the net loss, which was approximately $1.5 Million lower than the year before. Management believes that the shrinking revenues are mostly due to the global recession and expresses its hope to increase the sales over an improved marketing strategy. Nanophase intends to no longer rely only on market partners, but will additionally address manufacturers directly and demonstrate to them the advantages of the company's products.
The company produces nanomaterial products and dispersions, used in the production of a variety of goods, like sunscreen, personal care products, industrial coating ingredients and in optics and architecture. Plans include also to concentrate research and process engineering on the improvement of the applications and solutions for nanomaterials and to create or obtain additional core technology to expand in new markets.
Despite management's optimism, Nanophase has a negative ROE of -30,36%, as well as one of the lowest operating margins in its peer industry. Yesterday's extreme investor demand was probably in the hope of another tremendous rise and significant speculative gains.