ASX 300 fallen star down 62% in a year hits new 52-week low: Time to buy?

Here's my take on Weebit Nano shares today.

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There's an ASX 300 stock on the markets today that one could accurately describe as a fallen star. This particular ASX 300 stock had an incredible runup over the last few months of 2022 and into 2023, rising from around $2 a share to a high of almost $9.

But ever since, it has been down, down and down for this company. Today, its shares finished trading at $2.43, a drop of 1.25% for the day. That's after the company hit a new 52-week low of just $2.16 a share this morning. At that price, the ASX 300 stock was down 62% from where it was 12 months ago.

This fallen star share is none other than ASX 300 tech stock Weebit Nano Ltd (ASX: WBT). Check out its dramatic rises and falls over the past few years below:

Given where this ASX 300 stock has been in the recent past, and where it is now, many investors might be wondering whether this steep fall from grace represents a buying opportunity for Weebit Nano shares. After all, if the company can get back even close to where it was just a year ago, investors would be in line for some healthy profits.

Is this fallen star ASX 300 stock a buy today?

Well, unfortunately for Weebit Nano investors, I can't say that I think it is. Weebit's recent share price drop hasn't come out of nothing. Back in February, the company revealed some pretty dire numbers in its half-year results. For the six months to 31 December, Weebit Nano announced that it pulled in just $153,000 in revenues, which led the company to an overall loss of $25.2 million for the period.

Bear in mind that this is a company that still has a market capitalisation of $452.66 million today. In a quarterly market update last month, the company stated that it had $67.8 million in cash as of 31 March.

To be fair, Weebit Nano is arguably in a transition phase, working to commercialise the technology it has spent most of its time developing. It is only just pivoting to a commercialisation phase of its development, which explains the seemingly low revenue intake.

The company is making some interesting inroads in developing its ReRAM chips, which it hopes will have automotive applications.

However, even though I'm no semiconductor expert, it's hard to see an investment in Weebit Nano as anything other than a moonshot.

Its current licensing agreements are a promising start. But I still think a lot would have to go right for Weebit to get to a place of financial strength. So no, I won't be buying Weebit Nano shares today, despite its steep falls over the past year or two.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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