7/18/12 Graphene: How to Get in on a ‘Miracle Material’ | Resource Investor
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Graphene: How to Get in on a ‘Miracle
Material’
Last December, Money Morning technology specialist Michael A. Robinson told you about a
radical new material that would soon have a pervasive impact on the U.S. economy - and the
entire human race.
Robinson detailed how this new material is so powerful and versatile, it's going to play a key role
in new products for the U.S. military, leading tech companies, and medical researchers.
"Stronger than steel and lighter than a feather, this high-tech medium will shape virtually every
part of our daily lives by the end of this decade," said Robinson. "The possible uses are almost
limitless."
It's called graphene, and it's one of the most versatile elements ever created – useful in a
multitude of applications and potentially capable of redefining the world as we know it.
The "Miracle" of Graphene
Specifically, graphene is a two-dimensional structure made from the carbon atoms in graphite –
the stuff in pencil leads – but bonded together in honeycomb-like sheets a mere one atom thick.
Imagine a sub-microscopic chicken-wire mesh, but made up of carbon atoms and their
connectors rather than metal.
First envisioned back in 1947, graphene didn't become a reality until 2004, when several teams
of researchers demonstrated that single layers of carbon atoms could actually be isolated.
Now there's a mad dash to exploit the unique properties of the material, which are impressive:
Graphene is one of the strongest materials ever created, 200 times stronger than steel and even
more durable than diamonds. According to researchers quoted by BBC News, "It would take an
elephant balanced on a pencil to break through a sheet of graphene the thickness of Saran
Wrap."
It's highly flexible and can be stretched like rubber without losing its strength.
It's the thinnest physical material in the world – 3 million sheets of graphene stacked atop one
another would be just 1 millimeter thick. It also weighs virtually nothing.
BY LARRY D. SPEARS
June 21, 2012 • Reprints7/18/12 Graphene: How to Get in on a ‘Miracle Material’ | Resource Investor
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It conducts both heat and electricity better than copper, and could eventually replace silicon in
circuitry, potentially changing the nature of every electronic device in use today. Imagine cell
phones the size of a strand of wire or big-screen high-definition televisions no thicker than wall
paper – and capable of being rolled up into a one-inch tube and moved anywhere.
It's incredibly energy efficient and a potentially eco-friendly source of power. MIT researchers
recently found they could generate electric current by shining light on graphene, meaning it
could be used to revolutionize solar-power collection. A separate study at Northwestern
University found graphene could be used to charge lithium-ion batteries – like those used in
electric vehicles – 10 times faster and give them 10 times the storage capacity of present
models.
It's no wonder then that governments, universities, energy companies and major corporations
are pouring huge dollar amounts into graphene research and product development.
For example, Great Britain just dedicated $120 million to further graphene work at the University
of Manchester; South Korea has announced $300 million in graphene projects; and the US
military is studying potential applications in aircraft, missiles and other high-speed, light-weight
equipment.
On the corporate front, an estimated 200 companies – from IBM (NYSE: IBM) and Intel Corp.
(Nasdaq: INTC) to international players like Korea's Samsung Corp. and Nokia Corp. (NYSE
ADR: NOK) – are working on graphene research and applications.
IBM has already demonstrated a 150 gigahertz (GHz) transistor made of graphene, nearly
quadrupling the 40 GHz top speed of the fastest silicon-based device.
Investing in Graphene Stock
By now, you should be chomping at the bit for ways in which to invest in this "miracle material."
As far as retail investors are concerned, currently graphene is a limited market.
First, there's no way to invest in graphene – or the graphite carbon it's made from – as a
commodity.
China controls roughly 70% of the market, much as it dominates more than 95% of the world's
"rare earths" market, and Beijing is both limiting exports and charging a 20% export duty on
graphene. That's one reason its price has more than tripled in the past five years.
For investors who can't wait to get a hold of a graphene stock, the only publicly traded Western
alternative would be the Northern Graphite Corp. (CVE: NGC). Its shares are listed on the
Canadian Venture Exchange, recent price of $1.71.
NGC mines large-flake graphite from its Bissett Creek site in Northern Ontario, and has used it
to successfully produce graphene – which, though larger and slightly heavier, reportedly has
higher electrical conductivity, lower resistance and greater transparency than graphene made7/18/12 Graphene: How to Get in on a ‘Miracle Material’ | Resource Investor
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Like
from Chinese powder or flake graphite.
Given its low price – its 52-week range has been $0.71 to $3.42 – Northern Graphite obviously
offers potential, but the company hasn't shown a profit at any time over the past five years and
trading volume on the CVE is thin, with notoriously large bid-ask spreads. NGC is ultraspeculative.
As of now, there's no real pure play in graphene research, development or manufacturing,
either – but there is something close.
A graphene stock in the manufacturing field is CVD Equipment Corp. (Nasdaq: CVV), recent
price $13.12. Partnered with Columbia University's Graphene Labs Inc., CVV manufactures
and markets graphene products online via a Website called graphene-supermarket.com.
Unlike NGC, CVD Equipment has shown rising revenue ($30.99 million in 2011) and profits over
the past five years, with earnings per share jumping from 11 cents in 2010 to 67 cents in 2011.
The company earned 12 cents on revenue of $7.15 million in the first quarter of 2012.
Unfortunately, trading volume in CVV shares is also thin – just 71,000 per day – and the stock
has already risen from just $3.01 a share in mid-2010, though it is well off its 52-week high of
$19.76.
Investing in graphene stock is difficult in that nearly all of the other graphene-related companies
are privately held. That includes Michigan-based XG Sciences Inc., one of the largest U.S.
graphene suppliers, selling "nanoplatelets" and developing specialized graphene products using
them.
However, you can make an indirect investment in XG through POSCO (ADR NYSE: PKX),
recent price $82.84, which purchased a 20% share in the company last June.
Obviously, graphene offers remarkable possibilities. It also offers substantial profits for
investors, but finding the right vehicle to catch the graphene wave will be a challenge – requiring
both patience and close monitoring of companies that may benefit most as the new technologies
evolve.
For up-to-date news on how to invest in graphene stock, and other groundbreaking tech
developments, be sure to follow Michael A. Robinson's Era of Radical Change newsletter. Here
Robinson brings you the latest news that can lead to radical profits. And you can't beat the
price; get it free by clicking here.
Larry D. Spears is a contributing writer for Money Morning.
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Interesting article that seems to introduce the subject without burdening the reader with
extraneous detail. For a deeper review of the subject check out
Invest in Graphene
Gary Hemmings
3 weeks ago
Larry, we don't create new elements. Otherwise an interesting article highlighting its
significance.
Russell Byers
3 weeks ago
What you don't know about graphene could fill volumes. Must be a paid shill for NGC as
that will probably never fly just because of the overburden and low grade and the the
costs related to bring a kg. of graphite to any kind of purity...lots of much better
choices...plug graphite into google and you see some better choices
Biopilot
3 weeks ago |
