At its current share price, we do not think that Nanofilm is a compelling investment. Lofty valuations and customer concentration risk are our main worries.
Big Tech’s blockbuster earnings results, Trump’s intention to ban TikTok from the US and 85% of S&P 500 companies beating 2Q earnings estimates caught our attention this week.
46% of S&P 500’s market cap will report 2Q results next week. Narrow market breadth and fairly expensive valuations imply that some profit-taking could be due, should management guidance proves underwhelming.