Nanotechnology stocks moved steadily forwards earlier this summer as investors became a little less risk averse — only to slide back a bit in August.

Credit: SOURCE: LUX RESEARCH

The Lux Research index, which tracks companies with nanotech interests, has been following market trends for technology stocks over the past two months, says Peter Hebert, chairman of the New York-based consultancy that keeps the index.

Investors have leaned towards stocks in various high-tech sub-sectors since the spring, says Hebert, and nanotech companies have benefited from this trend. But, in line with other technology sectors, prices fell back last month.

Best-performing companies in the period, Hebert reports, included Veeco Instruments in Woodbury, New York, which supplies equipment such as atomic force microscopes. Its stock rose from $16 to more than $21 during July, on strong sales and earnings figures.

Another strong performer was Westaim of Calgary, Canada, whose stock has risen by 40% since June on reports that it may spin off subsidiary Nucryst Pharmaceuticals, which has forged a successful business making nanocrystalline wound dressings.

It was a less sunny summer for Immunicon, a Pennsylvania specialist in cancer diagnostics using small magnetic particles; its stock fell 40% over uncertainty about its sales prospects.

And index participants whose fortunes are closely tied to the semiconductor industry — such as Oregon-based FEI Company, which sells equipment such as electron microscopes to chip-makers — were hurt by a weak capital-investment outlook in that sector.

The Lux index includes an array of specialized companies selling nanotech equipment or products, as well as some larger ones for whom the technology is important.

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