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MMAT Stock Massive Decline - Is Meta Materials Stock A BUY? - YouTube
Channel: Business of Life - Investing
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meta materials has declined more than 80
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from its peak as other stars declined
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there is a major decline in the stock
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market because of many reasons like
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interest rates war and overwhelming
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assets and these events give you the
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opportunity to find great businesses at
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a cheap price and this business has more
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opportunities in the future
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they developed new lens and films which
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can be applied in many industries like
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augmented reality medical devices and
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others imagine that all the screens from
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your devices and others might use their
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technology and this represents a huge
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market for them in the future for
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instance they develop a medical device
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based on their films called gluco-wise
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which can take your glucose level
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without freaking you
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and in this stock analysis i'll help you
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to see why the stock price has declined
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so much their business model and how
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their fundamentals look so stay with me
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to the end of this video and you'll find
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this stock analysis the outro for this
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business and if meta materials is a good
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investment and if you find well in this
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video please give a like and subscribe
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to see more videos like this because i
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want you to succeed let's begin
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metamaterials is a company from canada
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which acquired another company from the
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usa in 1920 called torchlight and due to
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that acquisition the stock is traded on
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nasdaq and also in canada and their
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business model is like this
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they focus on developing high
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performance materials and nano
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composites which can manipulate light
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heat and electromagnetic waves in simple
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terms imagine that they combine
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different materials in order to create
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new structures which have different
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properties and they operate with more
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technologies like holography where they
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developed meta in partnership with
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airbus it's a pair of glasses which
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protect you from laser attacks and they
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are used by pilots
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another technology is lithography which
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is used in integrated circuits and here
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they are developing new products called
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nanoweb which is a film i mean imagine a
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transparent screen which can be used in
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touch screen sensors solar cells
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transparent heating 5g transparent
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antennas and other applications
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and also make color shifting foils which
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are used in banknotes and commercial
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branding
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and another technology is wireless
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sensing and radio wave imaging
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technology where they developed that
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device glucose which takes your glucose
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level without freaking you and they keep
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focusing on creating new films which can
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be applied in medical diagnostic devices
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and now they are developing metasurface
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which can diagnose breast cancer in
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other words they develop specific lines
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and films which can be applied in
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different industries and their clients
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are other businesses from aerospace and
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defense automotive healthcare energy and
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others
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and they have to segment their money
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from product sales where the revenue
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came from the sale of their sample nano
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web those films and lens
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plus other nano optic products
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in the second segment development the
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revenue came from contract services most
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of the revenue came from their
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acquisition of nanotech which provides
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more services like developing
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authentication features for future
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banknotes
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now let's see their fundamentals
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meta materials has a market cap of
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around 540 million and pays no dividend
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the revenue has recently improved due to
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their acquisition of nanotech and they
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had 4 million in 2021
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and the earnings are down a lot they had
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a loss of 90 million last year
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and the total assets are 434 million of
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which 50 million is cash
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and the total liabilities are 99 million
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of which the debt is 3.2 million
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so for the moment they have some cash
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and the debt is not so big
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now let's see what opportunities they
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have and the risk for this company
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the first opportunity is the nanoweb
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products which can be applied in many
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industries like augmented reality where
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they can sell their lens which will be
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incorporated in glasses and wearable
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devices
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and they see a market opportunity of
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around 1.5 billion
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another industry is 5g where they have
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those transparent window films which can
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reflect better the signal from antennas
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and another product is their pair of
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glasses which provides protection
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against lasers they are used in defense
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aviation plus other industries
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and another opportunity is their medical
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devices where glucose is in the
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developing stages and they see an
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opportunity of 15 billion only for this
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device plus they want to focus on other
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products like cancer screening where the
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market opportunity is 4 billion
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another device is mri medical imaging
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and biosensor
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so all those new projects represent an
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opportunity of more than 31 billion
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and another opportunity is their
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expansion in the production capacity for
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the banknote and brand security foils
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and due to the accusation of nanotech
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they have a contract with a central bank
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for up to 41.5 million over a period of
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up to five years
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now let's see the risk they have
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because they operate with big losses
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they might go bankrupt if they face
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problems in raising money for their
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operations
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and most of the revenue of around 72
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percent came from only three customers
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and if they fail with their projects
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they won't have enough money to continue
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the research
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the problem with this company is that
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they don't have a final product yet
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which you can rely on they have only
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opportunities and promises and if they
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fail or the competition will do
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something better then they can go out of
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business
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for the moment they only have some
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samples of films and lens from which
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they make money plus their accusation
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nanotech
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and it will take time till they finish
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their projects they didn't provide any
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guidance about the future revenue they
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only said about a contract with a bank
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and that contract comes from their
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acquisition so they have a lot of
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opportunities but it will take time till
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they succeed with their projects and the
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risk is you don't know if they can
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succeed
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they only sell those nanoweb products i
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mean lance and films and falls for
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banknotes so for the moment you can't
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expect a lot of money from this business
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now let's discuss about investing in
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this business
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as you see the stock price has a big
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jump and then a massive decline and to
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avoid these situations when you invest
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you always have to see the risk and the
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reward what can happen because if you
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invest when the stock price is high and
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no fundamentals you can lose a lot of
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money so the risk of investing this
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business is to lose all your money
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because you don't know if they can
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succeed with their projects and they
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don't have enough money to fund their
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research for a long period of time
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in the reward if they deliver what they
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promised i mean their project would be a
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success then sky is the limit because
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you saw their market opportunities and
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now they have a market cap of around 500
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million and it can go easily to 5
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billion if they succeed to accomplish
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their projects especially those from
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medical devices they have interesting
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devices and for me i want to invest in
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this company now the risk is too high
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better to wait and see what they deliver
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than to lose all my money and tell me in
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the comments how do you see this
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business in the next 10 years and if you
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find well on this video please give a
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like and subscribe to see more videos
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like this because i wanted to succeed
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