ERNI Gets the Blues

The NASDAQ turned negative for the year last week. ERNI (the Edwards Real Nanotech Index) got a little depressed too. The only component that didn’t go down was Starpharma, which may be insulated from the NASDAQ’s woes since it trades halfway across the world on the Australian exchange. Two recent high flyers, Raymor and Arrowhead, both got clobbered last week, which is what happens when negative sentiment combines with low liquidity. Both stocks have a shallow float. There was really no news of any consequence that would account for the index-wide drop in share prices.

I was able to talk with Raymor’s management last week at the NanoBusiness Alliance meeting in NY. News of their listing on ERNI had reached them and they were happy about it, as they have been ignored by other nanotech indices. They have begun manufacturing nanotubes on a small scale, using a process that they believe will be much cheaper than current practice, and they are working with potential customers.

The universe of NASDAQ-listed nanotechnology stocks may increase by one, if Luna Innovations goes through with its announced IPO, the date for which has yet to be set. With the NASDAQ tanking, though, it probably ain’t gonna happen soon.