Nanotech stocks

Motley Fool has an interesting article on 3M and it’s research into nanotechnology. This is a company worth researching. It has a long history of rewarding stockholders, a reasonable PE around 18.69, a forward PE of 15.56 and a PEG of 1.50 (all this from Yahoo Finance).

Also mentioned are Rule Breakers recommendation Harris & Harris (Nasdaq: TINY) and Motley Fool Hidden Gems selection Flamel (Nasdaq: FLML). These are riskier plays than 3M, but of course could see large percentage increses IF they succeed. TINY for example has a forward PE of 98.42. People like me who don’t know much about nanotechnology probably want to stay away. Motley Fool has this to say:

I remain bullish on TINY’s long-term potential, but with the dilution of existing shares and in the absence of any exciting news coming from its core holdings, I think TINY will continue to float slightly lower in the weeks ahead. Therefore, I would encourage would-be investors to sit tight and watch to see at what price the company itself offers its 3 million new shares.

FLML is another stock I probably won’t invest in. With a current PE of 288.92 I don’t understand why analysts set a 1 year target of over 29.00 (FLML currently trades around 18.75). Perhaps if I understood the company I would understand the price target, then again, perhaps not.

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