Clipped Audio: https://clyp.it/rdpbqu2x
Transcribed Audio (Semi-Automated so some errors inside)
Kochie: The next stock comes from Leah - Advance NanoTek.
Mark: Advance NanoTek is a very interesting business. We were asked about it about a month ago on the show. What they do is they they they produce nano sized particles of zinc oxide is their primary business and they supply that to the for sun tanning creams but also for makeup which has a higher UVA factors like I they'll order is a big client of theirs and so on. It's a very interesting business. It actually has been the management change, which I'll come back to management, about five years ago it changed. ANO is definitely the world's leading manufacturers of these nano sized particle zinc which is actually very difficult to do. So they say they won't let anybody see how they do it and their competitors all seem to have a lot higher costs than they do. So there is a significant cost advantage and they treat the process like Coca-Cola. You know we keep it a secret. And the big thing they've got going for them is the market's booming. And the reason is booming is titanium oxide and other chemical type components we put into suntan creams have shown to be pollutants for the sea and Hawaii etc has banned them, the chemicals also cause liver and damage to kidneys as you actually absorb it.
Mark: There's a whole heap of medical stuff done independently not through the company which is basically effectively banning all these products globally. So zinc is the go-to product and there's a supply shortage. So they've been growing the old fashioned zinc craze. Yeah except they can make it transparent. Yeah the red & yellow stuff you can never get off yeah this is a much more sophisticated. And I think they've been growing extremely well. So it's interesting I looked at it on Conscious Investor this morning and it's at the top of our return of any company that we have at the moment because it's growths are so high versus the price. But you know it's a business that's only been profitable for the last three years. Yeah. So yeah it's run by a entrepreneurial CEO Lev Mizikovsky. Yeah he started Tamawood which is a builder as well and then set this up with Geoff Acton who's the CEO and they bought into it it was basically a University of W.A. business was run by professors and chemists who had no commercial nous at all. So was losing money. It lost money since it started. He put money into it and eventually bought control and then what they've done is they've commercialized it. So they've really applied good business practices to it and obviously they've built up distribution and wholesalers. So businesses in a strong place but growing currently at about 200 percent a year. So that's all good yeah. Yes we like all that. When I was here last time I was a bit harsh on management I said that there was a lot of related party transactions. I've since done some more homework and spoken to management and so on and they set up a management company to provide services to the listed vehicles for us. They got three listed companies and it allowed them all to save money. So I think it's very much a buy as long as you're happy to accept that. It is not the wild west. It's just a entrepreneur being entrepreneurial and he's is going to ruffle feathers sometimes.
Gary: I mean it's actually nice for Mark to sort of clarify some of those issues because you read through the last three to six months there's plenty of them on the market headlines. They've got disputes with Collection House, we've got a suspension from a quotation, so it just sounds a little spiffy at times with some of this stuff that's going on. But yeah look not not every sort of CEO's going to be a details sort of guy or a girl. So I guess it makes me feel a little bit better what Mark is saying now. I want to watch it a bit longer here because I know it's sort of hard to tell, they've had a really good run here the numbers look pretty good, the segment looks pretty interesting, but price has had a pretty rocky sort of couple of weeks up and down and on the down move at the moment. I'd just like to see things just settle down a little bit, just see some more positive news and get back to making money rather than making the headlines.
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