Nanophase Technologies (NANX)

Company

"Nanophase Technologies is an industry-leading nanocrystalline materials innovator and manufacturer with an integrated family of nanomaterial technologies. The entire focus of Nanophase is nanotechnology, with two distinct and patented processes for the preparation and commercial manufacturing of nanopowder metal oxides i.e. Aluminum Oxide, Zinc Oxide, Cerium Oxide, Titanium Dioxide, and several others. Nanophase Technologies Corporation has developed a process, Discrete Particle Encapsulation, to coat the surface of its nanoparticles with a thin polymeric shell that enables compatibility of the particles with a wide variety of fluids, resins and polymers. Also, Nanophase has developed technology to permit the dispersion of its nanoparticles in water and a variety of polar and non-polar organic fluids. This allows Nanophase to supply concentrated, ready-to-use nanoparticle dispersions, eliminating the need for customers to disperse the nanoparticles themselves. Nanophase's family of integrated technologies economically produces nanocrystalline materials, and then nanoengineers those materials to fit a customer need." (company website)

Buy

13-Mar-06. NANX reported earnings last week without undue reaction. It is now surpassed the previous peak seven months ago.

• Price momentum (PPO) — picking up again after a long decline
• Trend (ADX) — strengthening sharply
• Money flow (CMF) — becoming less negative
• Relative strength (RSI) — picking up strength, although not dramatically
• Volume — rising gradually over past two months

Sell

30-Mar-06. NANX has challenged the $8 level four times now in the past two months and pulled back each time. Today is the third consecutive day of retreat, and I suspect it may go still lower: Momentum (PPO) is slowing; the trend (ADX) is weakening; money flow (CMF) is negative; relative strength (RSI) is falling; and the more-sensitive stochastic RSI shows the stock is oversold.

With all the volatility reflected in the chart (long tails on the candlesticks), I decided that discretion would be the better part of valor, and I'll eat a small loss.