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 graphene-supermarket.com.
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.