The share price of Advanced NanoTek Ltd [ASX:ANO] has climbed an impressive 20.58% at time of writing, gaining $1.20 to trade at $7.03.
ANO is an Australian-based advanced materials technology company which specialises in dispersions of mineral-only UV filters in cosmetic emollients used for sunscreen, skincare and pharmaceutical formulations, as well as alumina plate-like powders used for cosmetic applications.
ANO’s share price could soon hit the $10 mark with the company announcing an unexpected increase in sales shortly after trading began this morning.
As shown by the chart, the 50- and 200-day moving averages appear to be diverging, indicating a strong upwards trend. Meaning the share price could push higher for now.
Source: Market Index
In this morning’s announcement, Managing Director Geoff Acton apologised to a shareholder who predicted the share price would reach $10 within two years. The comment, which was made on an investing forum and was subsequently moderated, received attention from ANO’s board of directors in January this year.
At the time the board made it clear it did not foresee a $10 share price value due to capacity limitations and the current size of the zinc market. Today’s apology has been seen by some a class act from the Managing Director.
The company said that after a number of meetings in the US ANO received an uplift in additional orders to the sum of around 100 tonnes. The orders cover the first quarter of FY20. While ANO said orders were at current pricing, they did not assign a dollar value to the increase in sales.
Mr Acton said the reason for the unexpected sales increase was due to preliminary negotiations held with a number of sunscreen manufacturers in the US during their recent meetings.
When will ANO hit $10?
Just when we can expect the share price to hit the $10 mark is anyone’s guess, but if the company continues on its current trajectory I’d guess it would be before the end of the year.
ANO said it plans to visit a number of potential new distributors in Europe in early June, which could mean more sales than originally predicted. Mr Acton said ANO is now quietly confident that their current growth trajectory can be maintained for the first half FY20 subject to no adverse unexpected issues.
For Money Morning
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