The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines. On the date of publication, Thomas Niel did not have (either directly or indirectly) any positions in the securities mentioned in this article. Read More: Penny Stocks - How to Profit Without Getting Scammed If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that ’s writers disclose this fact and warn readers of the risks. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. Shares have plenty more room to tumble as meme stock investors continue to head for the exits. Until we see further progress with its big plans, it’s best to stay away. Not only that, the special dividend paid out before the deal close represents a $77.9 million preferred stock claim on its shareholder equity. If Meta Materials is pricey now, what’s a reasonable valuation? Based on its pro forma financials, revenues on an annualized basis come out to around $2.4 million. This points to the stock having plenty of room to fall before it’s no longer overvalued. It also has legacy oil and gas assets it’s intending to sell.Įven when adjusting for these assets, however, this valuation remains out of whack with its current underlying value. Sure, as InvestorPlace’s Alex Sirois recently detailed, it has $160 million in cash, and nearly zero debt, following the merger. Even after its sell-off, the company sports a market capitalization of around $1.1 billion. For now, still in its early stages, this potential is more than accounted for in its share price. Before you run out and buy this stock, keep in mind it’s many years away from coming even close to this level of success. Known as Glucowise, the company projects an annual market potential topping $15 billion. You can even use them to improve solar panel efficiency.īut a key end use may be in the health care space, and diabetes management (glucose monitors) in particular.Īs InvestorPlace’s Chris MacDonald wrote July 6, Meta Materials is making progress in producing a non-invasive glucose sensing system. So is using them to deice and defog Lidar cameras on self-driving vehicles. 5G reception enhancement is one such possible use. Metamaterials are fabricated to achieve electromagnetic properties. Yet, there is a plethora of possible end users for its advanced materials, known as metamaterials. Its operating business today isn’t generating much revenue. Meta Materials Has Potential, But the Price Isn’t RightĬheck out Meta Material’s most recent investor presentation and excitement over its long-term prospects makes sense. But today, it’s still trading at inflated prices and has plenty more room to fall. It may be able to turn its technology into high levels of growth in the coming years. There may be opportunity down the road with the now-named MMAT stock. Others are likely holding the bag, hoping for a recovery.Ī recovery isn’t likely to happen any time soon. Those who got in near or at its split-adjusted high of $10.88 per share? Some likely got out early enough to cut their losses. Traders who got in at the start of the squeeze may have been able to cash out for fast profits near the top. As one Seeking Alpha contributor detailed near the peak of the squeeze, the former TRCH stock struck while the iron was hot, launching a dilutive secondary offering. So has another factor: the heavy issuance of new shares. This has driven much of this stock’s post-merger decline.
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