Nanotech Investing - Part III

This article was published at www.Stockhouse.com on August 8, 2008.

If you are not an “accredited investor”, should you begin investing for the long term in “small” and advanced tech stocks, now?

If so, how and in what should one invest?

Unbelievably, for the first time, ever, we say – yes!

We would begin to “dollar cost average” monthly, over the next 20 months. We would divide the total amount we wanted to invest in these type shares over the next few years – let’s say $20,000 – into 20 and invest the same amount monthly on the same day (in this case $1,000), every month for 20 months starting now.

What stocks would we choose and how many shares of each would we buy?

Simply, we would buy The Nanotechnology.com Small Tech Index using the stocks and the ratios we present there. (Remember to use the footnotes at the bottom of the page. They are very important.)

Now some words of caution, especially for the well-heeled, “accredited investor”-types with which we work closely:

A few months ago, 60 Minutes did a very interesting take on nanoparticles used in cancer therapeutics: a technology with which our team is quite familiar. You can view it now if you missed it and read the accompanying article.

The changes in science and technology are coming so fast that one noted scientist recently stated, “things change faster than you can publish them.”

Let this be “a word to the wise”, when, as an investor, you think you are on to something unique. Finding a “robust” technology, one that keeps working efficiently and economically, no matter what you throw at it is usually good enough, if you have the right team.

The U.S. economy is now faced with the choices of a man atop a burning, two-story building. He can make a terrible choice with known consequences by jumping and breaking his legs (inflate, regulate, and bail out, which will cause significant and harmful, but fairly well understood, consequences), or he can face the unknown and wait or run into the fire, hoping for it to be put out before reaching him or finding an opening to an escape. The results would likely be catastrophic, but he might survive (this equates to doing more tinkering around the edges or letting the weak markets crash and hoping for positive results – the outcomes are unknown but could range from all kinds of “nastiness” like Japan in the early 1990s and forward, to Germany’s hyperinflation prior to World War II).

Luckily, as of now, we’re only standing on the top of a one-story building! Unfortunately, that could change, and many stories added, if we continue down the path on which we have been.

Here are the resources you need to be a successful investor in nanotech and other “small” and advanced technologies. They are all free (except for the book, listed first below):

Nanotech Fortunes – the first and only book written on successful investing in “small technologies” – available on www.Nanotechnology.com or Amazon.com.

Nanotech Insights at BlogNano – start here and read up to the current date.

The Small Tech Prospector archive – you’ll have to register for free and provide your e-mail address, but this is an incredible trading diary and information source.

Nanotechnology.com itself – the four or five most important nanotech stories in the world posted daily on the home page. Interviews with the giants of nanoscience in easy-to-understand for the non-scientist format; constant update of The Nanotechnology.com Small Tech Index, The Best of the NanoWeek archive, and much more; some require a short email registration.

Scientific & Technological Commentary on stocks for the non-scientist – again, quick, free registration required. This will gave you a great sense of how our scientists do due diligence on nanotech companies.

Of course, our company seeks and values relationships with accredited and institutional investors, financiers, and CEOs of private, “small,” and advanced technology companies that can achieve a high ROI for investors, capital needs of less than $12 million, and an interest in immediate access to public markets via the regulatory auspices of the TSX Venture Exchange. Readers are welcome to contact us per the note below to receive our regular updates.