No longer the distant dream of science-fiction writers, nanotechnology, or the manipulation of matter at the molecular level, is now a commercial reality with a myriad of potential uses. Products such as self-cleaning windows and stain-repellant fabrics are already on the market, and scientists are utilizing nanotech to develop new organs for transplant patients, bulletproof vests for soldiers, food packaging that wards off bacteria, water purification techniques for third-world countries, and much more.
The demand for nanotech is rapidly growing, particularly in markets such as healthcare, defense, cleantech and consumer goods. Researchers at Ohio State University recently discovered a way to deliver cancer-fighting biomolecules into leukemia cells, and earlier this month, an international research team revealed an artificial muscle with the strength of an electric motor and the flexibility of an elephant’s trunk. Lux Research forecasts that the global market for nanotechnology could reach $2.5 trillion by 2015.
One pure play in the nanotech space is Applied Nanotech Holdings, Inc. (OTCBB: APNT), a Texas-based research and commercialization company. APNT’s technologies have numerous applications across a range of high-growth markets. Reaching profitability and revenues of $8 million in 2010, APNT is entering a period of accelerated growth resulting from the introduction of a number of breakthrough products powered by its technology.
APNT has historically generated revenue by providing research and development services for corporations and government agencies. Among its clients are the National Institutes of Health and branches of the U.S. military. Through its research, the Company’s technology portfolio has ballooned to over 300 patents (150 issued and over 150 pending) in the areas of nanoelectronics, carbon nanotube (CNT) enhanced composites, thermal management materials, sensors, and electron emission technology. With leading manufacturers seeking to license APNT’s various technologies, the Company is negotiating lucrative royalty agreements, enabling it to share in the sales of end products developed by its clients.
The commercialization of APNT’s technology is exemplified by the Company’s partnership with Yonex, a Japanese sporting goods giant, which uses APNT’s Nanopreme carbon composite material in its golf clubs and badminton racquets. The use of Nanopreme results in products that are lighter, stronger and more resilient than conventional clubs and racquets. In the case of golf clubs, this results in greater distance, giving golfers the edge they constantly seek. Yonex plans to release additional products using Nanopreme in the future. APNT has begun receiving ongoing royalty payments from future sales of Yonex products that use the Company’s technologies.
Another of APNT’s products capitalizes on the cleantech boom. The Company has developed spray-on metallic inks for solar wafers, which could make solar power more affordable. The process reduces the thickness of solar panels, is more efficient than traditional application methods, and eliminates the risk of breakage during the application process, resulting in lower production costs. The Company was awarded $1.6 million from the U.S. Department of Energy last year to develop this technology. More information about APNT’s solar ink technology is available in this recent Fox 7 news feature on the Company.
Bottom-line, APNT has a high-profile customer base, a strong balance sheet, and a 51% top-line CAGR for the fiscal years 2006 to 2010. Due to low visibility in the capital markets, its stock currently trades below $0.50, offering considerable upside for investors. With nanotechnology poised to transform everything from medicine to mobile phones, and APNT entering a phase of rapid commercialization, now is an excellent time to begin building a position in this stock.
To learn more about this exciting story, you can view an archived recording of the Company’s recent presentation at our virtual conference by clicking here.
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