Quantum Materials Corp: Is It Worth The Wait?
https://www.insiderfinancial.com/quantum-mate...it/119696/
Quantum Materials Corp (OTCMKTS:QTMM) is well worth a look at the moment. The company is one of those early stage technology companies that it pays to be a little bit wary of in the OTC space. A company that is pushing a so-called revolutionary technology towards a huge market, but as yet is a ways off proving there’s not only a willingness for said market to incorporate the technology into its landscape, but also a viable path to said incorporation.
With that said, however, as much as it pays to be a little bit wary of these sorts of companies, they can also be nice medium term plays.
Quantum is focused on the development and manufacturing of what are called quantum dots. These sound very high tech, and they are but the concept behind the is relatively simple. Basically they are tiny (and we mean invisible tiny) particles that when exposed to light emit a different color. The emitted color varies with the light spectrum, so you can shine a light at 2nm spectrum at them for example, and they will emit blue light; 2.5nm, green; 3nm, yellow etc. When added to what are called quantum dot LEDs, they can form the basis of an adaptable lighting system.
The applications are things like television screens, computer monitors, mobile device screens – any thing with a screen can be developed to incorporate these dots. So why use these instead of traditional LEDs? Because the smaller the light emitting source, the more can be crammed into a screen, and the higher the quality of said screen.
The latest news fro the company was an investment by the China Government Guidance Fund of 150 Million RMB ($21.8 million) in the company. The investment is targeting the construction of two Quantum Dot production line and application development centers in the Beijing and Changde Special Economic Development Zones. There are a few reasons stated why this location is great for the company (mainly rooted in tax benefits and kickbacks on the real estate) but what’s important is what it means for Quantum in terms of production and – by proxy – output.
Basically, these centers will be used to run high volume production of the QDs, which will then be incorporated (to an equally high volume) into QDLEDs. This high volume production is not yet done by any entity, and Quantum is going to be the first to do it. Why is this important? Because one of the major reasons that this technology isn’t already used in things like televisions, mobile devices etc. is that the big names in the space – the television producers – can’t gain access to high enough volumes of the LEDs to facilitate large scale incorporation.
With the two new plants completed and in place, Quantum will be able to create this demand and – the hope is – satiate it all at the same time.
So that’s the reward and the upside. If, big name electronics companies want to incorporate quantum dots into their products, and there’s every indication that they do based on the implications of the technology, then they are going to have to go to Quantum to do it (at least for the next few years).
The downside is rooted in how quick this uptake happens. OLED, LCD, all these sorts of once-game changing technologies, took time to take hold of a market. QDLED is going to be no different. Quantum has a first mover advantage, sure, but investors that want to benefit from this are going to have to be willing to hold for a while before they see return, and this “while” might bring with it some sharp swings.
Weighing up the risk and reward, however, and for a risk tolerant operator, this one could be well worth keeping an eye on.
https://www.insiderfinancial.com/quantum-mate...it/119696/
Quantum Materials Corp (OTCMKTS:QTMM) is well worth a look at the moment. The company is one of those early stage technology companies that it pays to be a little bit wary of in the OTC space. A company that is pushing a so-called revolutionary technology towards a huge market, but as yet is a ways off proving there’s not only a willingness for said market to incorporate the technology into its landscape, but also a viable path to said incorporation.
With that said, however, as much as it pays to be a little bit wary of these sorts of companies, they can also be nice medium term plays.
Quantum is focused on the development and manufacturing of what are called quantum dots. These sound very high tech, and they are but the concept behind the is relatively simple. Basically they are tiny (and we mean invisible tiny) particles that when exposed to light emit a different color. The emitted color varies with the light spectrum, so you can shine a light at 2nm spectrum at them for example, and they will emit blue light; 2.5nm, green; 3nm, yellow etc. When added to what are called quantum dot LEDs, they can form the basis of an adaptable lighting system.
The applications are things like television screens, computer monitors, mobile device screens – any thing with a screen can be developed to incorporate these dots. So why use these instead of traditional LEDs? Because the smaller the light emitting source, the more can be crammed into a screen, and the higher the quality of said screen.
The latest news fro the company was an investment by the China Government Guidance Fund of 150 Million RMB ($21.8 million) in the company. The investment is targeting the construction of two Quantum Dot production line and application development centers in the Beijing and Changde Special Economic Development Zones. There are a few reasons stated why this location is great for the company (mainly rooted in tax benefits and kickbacks on the real estate) but what’s important is what it means for Quantum in terms of production and – by proxy – output.
Basically, these centers will be used to run high volume production of the QDs, which will then be incorporated (to an equally high volume) into QDLEDs. This high volume production is not yet done by any entity, and Quantum is going to be the first to do it. Why is this important? Because one of the major reasons that this technology isn’t already used in things like televisions, mobile devices etc. is that the big names in the space – the television producers – can’t gain access to high enough volumes of the LEDs to facilitate large scale incorporation.
With the two new plants completed and in place, Quantum will be able to create this demand and – the hope is – satiate it all at the same time.
So that’s the reward and the upside. If, big name electronics companies want to incorporate quantum dots into their products, and there’s every indication that they do based on the implications of the technology, then they are going to have to go to Quantum to do it (at least for the next few years).
The downside is rooted in how quick this uptake happens. OLED, LCD, all these sorts of once-game changing technologies, took time to take hold of a market. QDLED is going to be no different. Quantum has a first mover advantage, sure, but investors that want to benefit from this are going to have to be willing to hold for a while before they see return, and this “while” might bring with it some sharp swings.
Weighing up the risk and reward, however, and for a risk tolerant operator, this one could be well worth keeping an eye on.
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