Nanodynamics Inches Towards an IPO

The latest IPO candidate is Nanodymanics who are looking to raise about $90 million with the aim of spending “$33 million for capital equipment and expansion of our manufacturing capabilities, including expenditures necessary for commercial production of our SOFCs and Cell-Poretm water filters and for the establishment of a new facility, $2 million for information technology systems and $26 million for expenditures necessary for commercial production of our core products.”

Raising $90 million on 2006 sales of $4 million may be tough. With  little in the way of solid revenues apart from government R&D contracts it could be another pump and dump IPO. With institutional investors nursing recently burned fingers from that nanomaterials company the timing isn’t great.

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Comments 3

  1. swquantum

    Valuation is about discounting the future, not looking at the past. Analysts who use historical sales figures to make valuation judgments are like drivers who use only the rear view mirror to drive. I don’t know any prudent drivers that would recommend this technique. The same goes with prudent investing. If you are serious about investing in NanoDynamics, I would recommend taking the $4 million sales figure for 2006 and multiplying it by 100 just for starters. That will probably get you in the ballpark of the potential the company has in the rapidly growing clean tech marketplace. Given NanoDynamics’ business strategy, technologies, management prowess, and operational capabilities, “pump and dump” may well turn out to be the worst possible advice you could give anybody with respect to investing in the company.

  2. Post
    Author
    Tim

    Clean Tech is an incredibly crowded and competitive market, despite revenues being minuscule, so a $400m valuation, something along the lines of Facebook, looks like cloud cuckoo land to me – just look at the number of companies working on fuel cells.

    I haven’t seen a single diversified nano everything company that has been a success yet, and most of them try an IPO simply because their investors want an exit rather than there being any real advantage in a public offering.

  3. Pingback: Nanodynamics Files For IPO, Ignores Global Stock Market Metltdown » TNTlog

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