New Investment plans

hello friends,

Knowing what you know today, if you had the opportunity to go back in time and invest in the Internet sector in 1997 would you do it? Silly question I know. Even the no-names of the Internet made a fortune for early investors… Companies like Sify Ltd., which shot up over 1,000% in four months. Well… there’s a sector today looks just like the Internet sector did in 1997.

I’m talking about nanotechnology.
Nanotechnology is the science of fabricating things smaller than 100 nanometers (a nanometer is one-billionth of a meter). Basically, we’re changing the construction of products at the cellular level. Think of the BASF advertising slogan, “We don’t make the products you use. We make the products you use better.”
That’s how nanotechnology works…
Nanotechnology doesn’t make the DVD. It makes the DVD scratch resistant. Nanotechnology doesn’t make the fabric. It makes the fabric stain resistant. Nanotechnology doesn’t make the medicine. It makes the medicine easily absorbed by the body. Building at the nanoscale enables new interactions in materials, semiconductors, and biological agents. Ultimately this should also lead to new discoveries in pharmaceuticals, biodefense, and healthcare.
In short, nanotechnology itself is not a separate industry, but rather an applied approach to multiple industries. Consequently, the profit potential for this market is enormous.
However, we’re not there yet. Heck, we’re not even close. Nanotechnology is still in its emerging stage. Most companies have small market capitalizations and very few are even close to turning a profit.
Fortunately, Wall Street cares more about potential than about profit. If you need proof of this fact then just consider the case of Amazon.com (or any other Internet company for that matter). Back in 1999 when Amazon was losing tons of money, Wall Street bid the company up to $110 per share (split adjusted). Today, Amazon actually turns a profit, but the stock changes hands at just about $30 per share.
My point is that when the potential breakthroughs are huge, as was the case with Internet stocks in 1999 or with biotechnology stocks in general, then less attention is paid to profitability. And that’s the situation we find ourselves in with nanotechnology stocks.