Nanotechnology

On December 3th, President George W Bush signed the 21st Century Nanotechnology Research and Development Act authorizing $3.7 billion over the next four years. That is more than was spent in the Human Genome project. Europe is investing $915 million and Japan paid out $750 million last year. The National Science Foundation estimates that nanotech applications will be worth 1 trillion in the next decade.

Nanotechnology, or molecular manufacturing, is the design and manufacture of extremely small electronic and mechanical devices built at the molecular level of matter. The term "nanotechnology" was popularized by the technologist Eric Drexler in his 1986 book, "Engines of Creation" (he is also author of "Nanosystems").

A nanometer is a one billionth of a meter, that is the size of ten hydrogen atoms side by side. At this scale, individual atoms and molecules can not be seen directly because they are smaller than the light wavelenght. They do not behave like they do when manipulated in bulk, some new phenomena and properties emerge and new instruments, algorythms, simulations are needed to manipulate matter.

Imagine where the plastics industry was in the 30s and the IT industry in the late 50s. This $3.7 billion of government funding will likely result in early profits to companies that make tools (electronic microscopes, sensors and methods of manipulating atoms), modeling software (simulation) and materials (nanotubes, powders, ceramics, etc), computing devices (memory, processors) and nanobiotech (drug delivered in "nano-capsules"). New patents are being developed by today's nanotechnology companies and the most successful patents can be used in large scale with huge profit for these patent holders.

This is already happening. In a survey by the NanoBusiness Alliance, 21% of about 1,000 companies in nano-related business are bringing in revenue. An estimated $1.2 billion in venture capital will be invested in research and development of nano-related products and processes over the next year, not counting the big names like Du Pont, GE, Intel, IBM and Hewlett-Packard.

Dow Chemical, Jonhson & Jonhson, ConocoPhillips, GlaxoSmithKline, Raytheon, Sumitomo Chemical, Microsoft, BASF, Boeing, GM, Lucent, Motorola, and Phelps Dodge are paying attention and getting their feet wet in the new technology. There is an Eddie Bauer line of stain-resistant khakis made of a nanomaterial that repels oil and water, resists wrinkles and dries quickly. GM is testing a new clay plastic nano-composite in its minivans. Wilson has a new tennis ball that keeps inflated longer thanks to nano-based coating.

Here are some of the companies that may be a good especulation on the nanotechnology boom but keep in mind some of the companies are not yet profitable:

Veeco Instruments (VECO, $27.98 on 12/4/03) - Veeco is a semiconductor tool maker and an optical network and measurement company that maker atomic force and scanning probe microscopes which are used in nano-research. It has a superb 1-year graph.

Symyx Tech (SMMX, $20.08 on 12/4/30) - Symyx researches materials for chemical, life science and electronics application and specializes in the design and synthesis of polymers and catalysts for electronics and biotech industries. Its nano-methods synthesize arrays of hundreds to thousands of miniaturized materials on a single wafer, accelerating the experiments and decreasing the cost of research. It has too many patents to list.

Flamel Technologies (FLML, $29.00 on 12/4/03) - Flamel is a French biopharma company developing and testing drug delivery methods using polymers. Flamel's nanoparticles make the drugs reach the small intestine and be released slowly (controlled-release) so the patient can take less doses. A lot of companies may be interested in reintroducing their drugs with this delivery system.

SkyePharma PLC (SKYE, $13.69 on 12/4/03) - SkyePharma is a British biopharma company that develops drug delivery systems using lypid nano-particles. Poorly-soluble drugs can be made water soluble for improving body absorption.

Harris & Harris (TINY, $9.64 on 12/4/03) - Harris & Harris is a venture capital investment company operating as a business development company whose goal is long-term capital appreciation rather than current income. TINY has been investing in the development of new technologies in various industry segments through several private companies (NanoGram, NanoOpto, NanoPharma, NanoSys, NanoTechnologies, Nantero, NeoPhotonics, Optiva and others), focusing its new business activities on nano and micro-technology since early 2002. It is expected that TINY will profit very much from its companies IPOs.

NanoGen (NGEN, $6.16 on 12/4/03) - NanoGen just received the ninth patent for nano-manufacturing. The method can be used in the production of devices such as light-emitting flat panel displays, data storage materials and silicon wafers.

Altair Nanotechnologies (ALTI, $2.10 on 12/4/03) - Altair is engaged in the acquisition of patent applications, technology and tangible assets related to a hydrometallurgical process for the production of titanium dioxide products and nano-particles, which are used in plastics, fuel cell research and the biopharma industry.

I found about 26 more companies involved in nanotechnology. They are relatively undiscovered and will be listed here soon.

SMMX $20.08 on 12/4/03	FLML $29.00 on 12/4/03
SKYE $13.69 on 12/4/03	VECO $27.98 on 12/4/03
TINY $9.64 on 12/4/03	NGEN $6.16 on 12/4/03
ALTI $2.10 on 12/4/03

Some of the abridged information above was read on a brochure about the Forbes/Wolfe Nanotech Report, some abridged information from the ForbesWolfe blog website and some abridged information from the advertisement of the 24/7 Profits e-Dispatch Alert from the Red Zone VIP Service, and finally, some abridged information from the Ameritrade Apex web cast about Nanotechnology with Josh Wolfe.

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