Let us analyze… we are in a lull phase, on investing in the Graphene stock ideas these days. The reason being that the early hype for Graphite miners and its supplementary Graphene, the wonder material were unreasonably over-hyped as instant beneficiaries of vast technological advances, seem to have calmed down.
And most of all the junior graphite stocks are lingering at their 52 week lows, and that’s why the teasers pumping the Graphene arena stories are gasping for breath.
I will try to outline the cons and pros and the risks involved, you will essentially need to analyze before you actually invest in the Graphene story. Let us evaluate the cons first, because that’s the way I like to do things in order of preference, don’t worry I am not advocating kind of a unique strategy here, it’s just the things to keep in mind, before you consider investing in Graphene.
Let us reflect on the cons first…
Regardless of its potential characteristics, the prognostication that Graphene is going to find utility and make a presence in your Tablet Computers, and other electronic gadgets you use, in the near future as has been hyped in many of the teasers that are making rounds couple of years since, is far from reality.
So also the Miracle Material is still in the labs, loads of Graphene research patents are held by researchers and academic institutions, it can be very difficult to tell whose patents are going to end up being the most valuable ones.
There aren’t any rules to predict, and no company has as of now figured out a way to manufacture Graphene on a industrial scale it’s going to be years, until we can say for sure how sale-able the Miracle Material is… say 5 years from now at least.
Remember we had a prediction of ceramic engine valves, and an automobile engine without a radiator a couple of decades ago that never happened.
Another major concern is China, which at present controls 80% of the worlds Graphite supply that could lead to price manipulation as China has always been a rogue country on the subject of free- markets.
And now the pros!
The major pro to investing in Graphene Companies at this point in time is the weakness in graphite stocks prices, owing to slowdown in stock promotion teasers making rounds lately.
Don’t worry I will not bore you telling about the unique and promising characteristics the Miracle Material Graphene possesses, it has been established (I vouch for it) that Graphene is one of the most versatile elements ever created and capable of redefining the world we know of.
Graphene is certainly big on the minds of electronics manufacturing giants from Intel, Samsung, Sony, you name them, and they are working on Graphene research applications, and all have a strategy in place to take first mover advantage in the arena.
Governments all over the world have dedicated massive funding to further Graphene Research and development from an investors perspective this is a big plus so also the U.S. military is studying potential Graphene Applications.
The most interesting aspect is, half of the applicants hold patents to lesser than five inventions proving the infancy of this technology.
Even though this is a rapidly emerging technology, the trends in the current patent data indicate that it will not prove to be upsetting in itself.
Although the progresses achieved are through a large portion of academic participation, consumer applications such as flexible touchscreen seem closer to reality.
I welcome any corrective suggestions to improve this review, simply click ‘Suggest Corrections’ to hook up with me, I promise to update any constructive suggestions accordingly.