Nov 20th 2011

To get things moving I thought a fantasy investment might help to show how investing in graphene will result in the kind of profits every investor hopes for. With this in mind I will follow an imaginary investment of £1000/$1000 in a graphene company and a diamond company and record how the initial share purchase swells in size. Diamonds may be a girl’s best friend but only time will tell if graphene is the better investment.

Firstly, for diamonds I have chosen a company called paragon diamonds (LSE: PRG). This company operates within Africa as a holding company of both producing and exploration assets within the diamond industry. It owns the established Konoma diamond mine in Sierra Leone and has licences to mine in West Africa and to explore in Tanzania. An estimated resource of 119000 carats has been  suggested for the mine in Sierra Leone.

The price of a single share in Paragon Diamonds cost 28.75p on 20/11/2011, so an initial investment of £1000 would buy a total of 3 478 shares.

For graphene I have chosen CVD Equipment Corporation, (NASDAQ: CVV) a company that is determined to invest in the graphene revolution and whose share price is already showing signs of reward for this strategy. The company is working in partnership with Graphene Labs at Colombia University and trades graphene online from

I will provide a weekly update on the share price of each company and track how the investments compare. Next update, 27/11/2011

The price of a single share in CVD Equipment Corporation costs $16.44 on 20/11/2011, so an initial investment of $1000 would buy a total of  61 shares.

Now obviously a £ and a $ are not of equal value so we are not comparing like for like in terms of initial investment, however, because the rate of exchange will vary over time a direct conversion from one currency to another would be unnecessarily complex. What we aim to see is the percentage change resulting from the investment, or to put it more prosaically, whether the apple or the pear will grow the fastest. I anticipate that investing in graphene will, in time, produce the most dramatic results.

Graphene stocks to watch

Investing in Graphene

Investing in graphene is a sure-fire way to gain a foothold in the miracle technologies of tomorrow. Just as the rare earth metals tantalum and niobium became the must have stocks of the noughties so too will graphene become the materials stock of the next 30 years. A material integral to the development of nanotechnology the British Government was so convinced of its potential in 2011 that they themselves pledged to invest £50 million in the development of the substance and in the technologies that will be transformed by it. Identifying the companies most likely to benefit from this massive level of investment is the first step in profiting from the graphene revolution. Choose the right stock at the right time and you’ll find that profits will soon follow.

Choosing the right stock.

Understanding long term and short term aims is key to making the correct decision in this emerging market. Any strategy of short term profit making will include identifying and buying into companies likely to receive an investment boost and then trading on the increase in share price once the investment in announced. Simple. Longer term aims are slightly more difficult to outline and will differ from investor to investor, however thstrength can be found in trading in smaller companies with a research performance that larger companies are likely to make a take-over bid on. Consistent share performance, an excellent PR office and management team, and a clear strategy which points to the possibility of a future buy-out are all signs to look out for.

In the short term, the British government has made its intention clear with respect to its investment plans; £50 million pledge for investment, and the largest slice of that being offered to companies based in Manchester. Why Manchester? Well, Manchester is the home of graphene, it is the University where the substance was first developed and the home of the Nobel prize winning team of scientists currently engaged in researching and developing graphene for use. Find a company working on graphene from one of Manchester’s research parks and you’ll find a company vying for a slice of that government pie.

Longer term investment opportunities that have caused some market noise include CVD Equipment Corp (NASDAQ:CVV), Northern Graphite (CVE: NGC) and POSCO (NYSE: PKX) What to do now. If you have never traded before the very first thing you should do is select a trading platform and learn how to place a trade. Learn the features of the platform and become familiar with the way information is presented on screen.