Torchlight energy resource transition brings goodbye and good buy

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June 28 was an important day for all those who invested in Torchlight energy resources (NASDAQ:TRCH). This is the day the company merged with Metamaterials to form Metamaterials (NASDAQ:MMAT). And as a result, the TRCH stock has been replaced by the MMAT stock.

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It’s a huge change that goes beyond the stock tickers. While Torchlight Energy Resources was an oil and gas exploration company operating in Texas, Meta Materials develops functional materials and nanocomposites.

The crowd of memes apparently targeted shares of TRCH before the merger, resulting in a massive price spike. However, this cycle of hype and disappointment has come and gone.

So investors need to be aware of a new ticker symbol, a drastically different company, and a crazy move in the stock price. That’s quite an adjustment to make, but don’t worry, I’ll happily walk you through it all.

A closer look at the stock of TRCH

TRCH action offers a harsh but valuable lesson in buying during manic phases of the market: chasing after stocks after they have gone vertical is a tough game to win. If your timing is not perfect, you will lose money quickly.

This company serves as an example of a manual. TRCH / MMAT stock fell from $ 3.64 on May 13 to $ 21.76 on June 21, before falling back to $ 3.63 on July 16.

I can’t definitively prove that the same stock traders were responsible for this spike-and-slip. Nevertheless, I suspect that Reddit users may have had an influence; a quick little recognition on the internet shows stock articles on various investment captions dating back to the start of the year. And certainly, the company’s high and short float has attracted the interest of squeezing.

Anyway, if you bought stocks at the worst possible time, I sincerely hope you learned from the experience.

But if you’ve just learned more about the TRCH / MMAT stock today, or if you’ve been left on the sidelines, you might have the opportunity to buy that stock at a relatively favorable price.

Material facts

If you are new to Meta Materials, there is a lot to unbox.

Today we will not be talking about an oil and gas company; this is old news. We will rather look to a company with high potential in the niche of functional materials.

(Meta Materials is sometimes called META, so we’ll use the two names interchangeably).

If you are seriously considering investing in Meta Materials, I recommend that you read the investor presentation. You might be surprised to discover the wide range of possible applications for functional materials.

Here’s a quick overview of META’s product offerings:

  • Transparent sensors and 5G antennas: flexible materials that allow sensors on foldable phones;
  • Transparent conductive film which ensures defrosting and demisting of vehicles enhanced by LiDAR without blocking the camera / sensor functions;
  • Invisible antenna that improves 5G reception and digital TV indoors;
  • Ultralight, thin and flexible materials for solar panels: trap light that would otherwise be reflected, while increasing absorption; and
  • Materials for augmented reality glasses: incorporates optical elements for augmented reality with lens molding technology.

Dive Into Diabetes Management

It wasn’t even a complete list, believe it or not. It seems that there are endless potential applications for functional materials.

And now we’re going to add one more to the list, it could be a real lifeline.

Apparently, META (along with a number of partners) has just completed a 27-month project to develop a prototype non-invasive glucose sensor. This technology combines radio and optical wave sensors to improve the accuracy of predicting changes in an individual’s glucose levels.

The larger goal is to market META’s glucoWISE Home Hub product. And yes, it could be very profitable for the company, but it also represents an advancement in the science of diabetes management.

In the press release, Themos Kallos, co-founder and scientific director of META, provided an update that should encourage all stakeholders.

“We are continuing to develop this system, are looking for new strategic partners and plan to conduct preclinical human studies which are expected to begin this summer,” Kallos said.

The bottom line

There is a lot more to learn about Meta Materials, so feel free to do your due diligence on this exciting endeavor.

Next, take a look at the price action of the TRCH / MMAT stock. As you will see, the hype phase has already come and gone.

And with that, there is a chance to acquire shares of a high potential company at a floor price.

At the time of publication, David Moadel had (directly or indirectly) no position in any of the stocks mentioned in this article. The opinions expressed in this article are those of the author, subject to the publication guidelines of InvestorPlace.com.

David Moadel provided compelling content – and at times crossed the line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga and (of course) InvestorPlace.com. He is also a chief analyst and market researcher for Portfolio Wealth Global and hosts the popular YouTube financial channel Looking at the Markets.

The Transition in Torchlight Energy Resources article brought a goodbye and a good buy appeared first on InvestorPlace.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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