Q: I realize the graphene stock 'Hydrograph' is very speculative, but is it worth a small opening position?
Thank you,
Dean
Thank you,
Dean
5i Research Answer:
We think HG has potential. Recent news has been good (approvals, financing) and there are multiple avenues of potential growth. The stock is being promoted by some big players but there are not really any institutional owners yet. Momentum, of course, is excellent. BUT....and it is a big but.....the market cap is now $2.1B. HG still has no revenue, losses and negative cash flow. It is an extreme valuation and things need to go very right here for the stock to keep moving. There is a big FOMO trade on this one and this makes us cautious overall. We do think it goes higher over time, but it is speculative, and we think the ride will be exceptionally bumpy.