Why the Advance Nanotek share price is tanking today

Advance Nanotek Ltd (ASX: ANO) disappointed investors this afternoon.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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).

More on Share Market News

Oil industry worker climbing up metal construction and smiling.
Energy Shares

ASX 200 energy shares lead the market as US trade deals fuel optimism

ASX energy shares lifted 3.94% as more US trade deals led to improved market sentiment.

Read more »

A female ASX investor looks through a magnifying glass that enlarges her eye and holds her hand to her face with her mouth open as if looking at something of great interest or surprise.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Broker Notes

These ASX 200 shares could rise 50% to 60%

Brokers believe these shares could deliver big returns for investors.

Read more »

A girl is handed an oversized ice cream cone with lots of different flavours.
Best Shares

8 ASX All Ords shares that tripled in value in FY25

Just 8 out of the 500 companies making up the ASX All Ords achieved share price growth of 200% or…

Read more »

Broker written in white with a man drawing a yellow underline.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

Woman with a scared look has hands on her face.
Broker Notes

Bapcor shares fell more than 30% yesterday. Should investors buy in the dip?

Is this a value opportunity?

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Broker Notes

Broker raises price targets on 2 ASX 200 shares to buy

Ord Minnett has just upped its 12-month share price targets on 2 buy-rated ASX 200 stocks.

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Guess which ASX All Ords stock just rocketed 34% on strong earnings growth

Investors just sent this ASX All Ords stock surging 34%. Here’s what’s happening.

Read more »