Graphene Stock

Graphene Stock

A $16 Tech Stock to Hit $30 With or Without You

Once again, Louis Navellier gives a big tease with this $16 Nasdaq stock set to hit 30 bucks with or without us.  All thanks to this company's “miracle material” that conducts electricity 30 times faster than silicon- which is the industry standard used in all semiconductors that are found in nearly every electronic device.   Louis goes on to say that we will thank him 1,000 times on November 31st, in attempts to get us to join his newsletter.   So what could this company be that trading at $16 and will hit $30 with or without us?

Hmm… a “miracle material” way faster than silicon.  If that were the case, wouldn't this material start to be used in all electronic devices?

What could this miracle material be?

Before we go on to identify the company, let's see if we can figure out what this “miracle material” that's 30 times faster than silicon is.   The front runner to take on silicon right now would be the material Graphene.  Graphene is indeed 30 times faster than silicon, and it's billed as the wonder material of the 21st century with the power to revolutionize micro-electronics, and won its pioneers the 2010 Nobel Physics Prize.  Since its discovery, researchers have been working hard to develop commercial uses for this “miracle material”.   Such as transistors in circuit boards and computer chips.  Graphene transistors would in theory be able to run at much higher speeds and with stand higher temperatures then the industry standard silicon chip.   Graphene is also roughly 200 times stronger than steel.   From its description you can start to see it's potential.  Faster conducting of electricity and a lot stronger than steel, yet very light.  This could have the potential revolutionize touch screens and solar cells, not to mention the size of computer chips.

Chip engineers are always looking to find ways to produce a smaller chip.  The smaller the chip the less space needed to house it in an electronic device, leaving room for extra user friendly features in say an iPhone 4s or an iPad2.   Consumers always want sleeker, faster, more features and more computing power.  Could graphene be the answer?

Now that we know what the “miracle material” is that Navallier is talking about let's find out what $16 stock has their hooks in it.  After some research into the material and some in depth market scans in various sectors, it looks like CVD Equipment Corporation (NASDAQ:CVV) is the front runner company that Navallier is teasing us about.

CVD Equipment Corporation (NASDAQ: CVV) is a designer and manufacturer of standard and custom state-of-the-art equipment used in the development, design and manufacture of advanced electronic components, materials and coatings for research and industrial applications. It offers a broad range of chemical vapor deposition, gas control, and other equipment that is used by customers to research, design and manufacture semiconductors, solar cells, carbon nanotubes, nanowires, LEDs, MEMS, industrial coatings and equipment for surface mounting of components onto printed circuit boards. It also operates an Application Laboratory, which develops and manufactures a range of nano and CVD based materials and develops related processes and manufacturing solutions.

And back in May of 2010, CVD announced the signing of an exclusive Distribution Agreement with Graphene Laboratories, Inc. for Chemical Vapor Deposited (CVD) Graphene products. Under the Agreement CVD Equipment Corporation would manufacture CVD grown Graphene based materials and products and Graphene Laboratories, Inc. will market and sell them on a worldwide basis.

CVD’s Equipment Corporation’s Application Laboratory provides process development and material growth services for a wide range of advanced nanomaterials, i.e. Carbon Nanotubes, Silicon and other Nanowires, CVD Graphene, Transparent Conducting Oxide (TCO) materials and other CVD processes. It hosts a range of CVD research and production equipment that will be utilized for CVD Graphene production.

Some of the CVD Graphene products sold by Graphene Laboratories Inc. will be marked with one or more trademarks from CVD Equipment Corporation, such as nMEMStarter™, nFoil™, and CVDGraphene™.

Could this small Nasdaq comapny revolutionize the electronics world?  Maybe, it seems that CVD Equipment Corporation could benefit from the marketing of graphene, and they seem to be the front runners in equipment used in research and development of graphene.  And there are a lot of companies interested in developing ways to use graphene.

As it turns out IBM has been working hard to develop commercial uses for graphene as a semiconductor too.  There have also been talks that Samsung will start to incorporate graphene in the displays of some of its cell phones in the near future.

Some more food for thought; researchers at Samsung were able to produce a continuous layers of pure graphene the size of a large television.  The team has already created a flexible touch screen by using the polymer-supported graphene to make the screen's transparent electrodes. The material currently used to make transparent electronics, indium tin oxide, is expensive and brittle. Producing graphene on polyester sheets that bend is the first step to making transparent electronics that are stronger, cheaper, and more flexible. “You could theoretically roll up your iPhone and stick it behind your ear like a pencil,” says James Tour professor of chemistry at Rice University.

It seems there is a lot of money being thrown at the development and commercialization of graphene based products.  Looking at the benefits of graphene, its not hard to see why.  Graphene definitely has the potential to replace many materials currently used in electronics devices along many sectors.  Graphine certainly looks like the future.

So is (NASDAQ: CVV) the best way to get in on this “miracle material” graphene?  I could quite possibly be.  CVV could actually turn out to be one of those buy and forget companies.   At this time CVV has not done dividends, but if their potential is that of graphene, eventually we could see this happening.

On 8/21 CVV reported that it's ” Backlog as of June 30, was $22,208,000. This record backlog is an increase of 376.2 percent from the backlog of $4,664,000, reported for June 30, 2010. In addition, the backlog has increased 123.3 percent from the backlog total of $9,944,000 that we reported for December 31, 2010. During the six months ended June 30, we received approximately $24,700,000 in new orders.”

With the potential that graphene possesses we could see demand for graphene products by CVV increase greatly over time.  Judging by the huge increase in backlog orders for CVV this is already happening, and research and development is only growing around graphene. From large companies to the US Air Force. What makes this most interesting is, the market for graphene products hasn't even begun to be developed.  Can you say “room for growth”?

Here's a chart on CVD Equipment Corporation (NASDAQ: CVV).

CVV Chart

So will we be thanking Navallier 1,000 times on Nov. 31st? That may be hard to do seeing as how November only has 30 days.

Here are some interesting questions to ask yourself.  Graphene not only has the potential to replace silicon, but other metals used in electronics also, such as germanium, copper and indium.  If Graphene were to replace these metals, what would be the effect on copper prices?   What % of copper sales go to electronics?  Or germanium? Or Indium?   Just more food for thought.

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Written by John Thomas

I began my investing career back in 1998. I quickly discovered day trading, small cap and penny stocks. I was the editor of my own investment newsletter, stock promoter, investor relations, public relations and have witnessed the back-end process of taking a private company public through reverse merger and registration. That is roughly over a decade in a nutshell. During this time I learned how to identify the rats, sharks and people who truly want to help you learn about investing. Now I do research and write.
My hope is to pass along nuggets of information that could help or the very least entertain you on your way to financial success.