It’s been one of the best-performing small cap shares over the past year rising from just 54 cents on July 16 2018 to as high as $7.15 last month, but the Advance Nanotek Ltd (ASX: ANO) share price is starting to slide again to be at $5.09 today.
Advance Nanotek is a specialist manufacturer of a zinc oxide based UV absorber material that is used as a sunscreen ingredient and it’s rising sales of the ingredient to U.S. manufacturers in particular that has sent its share price rocketing.
For financial year 2019 it’s forecasting a net profit after tax of $5.9 million and management reported it’s “quietly confident” that the company’s growth trajectory will be maintained over the first half of FY 2020. In FY 2019 it expects to report sales doubled over FY 2018.
Over the last week Advance Nanotek shares swung wildly from a high around $6.27 to a low of $4.23, with the price volatility on the back of no news triggering an inquiry from the ASX’s compliance team. The company reported back that it wasn’t aware of any news that could be behind the swings other than what was already in the public domain.
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Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.