The Motley Fool

Why the Advance Nanotek share price is tanking today

The Advance Nanotek Ltd (ASX: ANO) share price has plunged 27% to $4.01 today after the sun screen material manufacturer revealed its financial results for the year ending June 30, 2019. The group posted a net profit of $3.38 million before an income tax benefit around $6.23 million that took net profit to $9.6 million.

However, operating cash flow came in at just $261,933 and after we account for $2.67 million in investing cash outflows offset by $1.64 million raised by share issues net cash actually decreased by $768,863 over the year.

The company had $352,533 cash on hand as at period end.

It also appeared to release its accounts today without any accompanying explanation or explanations over the numerical notes to the financial statements. 

Therefore it’s hard to speculate as to why the stock has plunged today other than to suggest the cash flows do not meet investors’ expectations given how the company has consistently boasted of huge sales growth for its sun screen ingredient over FY 2019. 

Other small cap darlings that have come back to earth recently include Nanosoncis Ltd (ASX: NAN) and Superloop Ltd (ASX: SLC).

One ASX Stock For An Estimated $US22 Billion Marijuana Market

A little-known ASX company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.

And make no mistake – it is coming. To the tune of an estimated $US22 billion.

Cannabis legalisation is sweeping over North America, and full legalisation arrived in Canada in October 2018.

Here's the best part: we think there's one ASX stock that's uniquely positioned to profit immensely from this explosive new industry... taking savvy investors along for what could be one heck of a ride.

AND, this is the first time The Motley Fool Australia has EVER put a BUY recommendation on a marijuana stock.

Simply click below to learn more on how you can profit from the coming cannabis boom.

Click here to find out more


NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.