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Nanotech / DDD - Two tech firms follow licencing route

February 2013

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Small technology companies can often outperform larger rivals by being more flexible and by focusing on niche areas, which were seemingly too small to interest giant concerns. Two examples in materials technology are Nanoco and DDD. While tiny in the context of the television industry, which they target, they have potential to be big successes in world markets as both are following a licencing route.• Manchester-based Nanoco's (NANO,165p) shares have already exploded upwards. Having doubled during January, the shares stand at 165p, giving the company an eye-watering market capitalisation of  £341m.  This is against sales of £4m this year from selling samples of its ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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