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Transition in Torchlight Energy Resources Brings a Goodbye and a Good Buy

·4 min read

BY: David Moadel, InvestorPlace Contributor

June 28 was a significant day for anyone invested in Torchlight Energy Resources (NASDAQ:TRCH). That's the day the company merged with Metamaterials to form Meta Materials (NASDAQ:MMAT). And as a result, TRCH stock was replaced by MMAT stock.

It's a huge change that goes deeper than stock tickers. Whereas Torchlight Energy Resources was an oil and gas exploration company operating out of Texas, Meta Materials develops functional materials and nanocomposites.

The meme-stock crowd apparently targeted TRCH stock prior to the merger, resulting in a massive price spike. However, that cycle of hype and disappointment has already come and gone.

So investors need to factor in a new stock ticker, a radically different company and a wild pop-and-drop in the share price. It's quite an adjustment to make, but no worries -- I'll gladly guide you through it all.

A Closer Look at TRCH Stock

TRCH stock offers a harsh but valuable lesson about buying during phases of market mania: chasing stocks after they've gone vertical is a difficult game to win. If your timing isn't perfect, you'll quickly lose money.

This company serves as a textbook example. TRCH/MMAT stock took a round trip from $3.64 on May 13 to $21.76 on June 21, before driving back down to $3.63 by July 16.

I can't definitively prove that meme-stock traders were responsible for this spike-and-slide. Nevertheless, I suspect that Reddit users may have had an influence; a little cursory Internet reconnaissance shows posts about the stock on various investing subreddits stretching back to the start of the year. And certainly the company's high short float has drawn squeeze interest.

Regardless, if you purchased shares at the worst possible time, then I sincerely hope that you've learned from the experience.

But if you're just learning about TRCH/MMAT stock today, or hve been sitting on the sidelines, then you might have an opportunity to buy this stock at a relatively favorable price point.

The Material Facts

If you're new to Meta Materials, there's a lot to unpack.

Today, we won't be talking about an oil and gas company; that's old news. Instead, we'll be looking at a high-potential company in the functional materials niche.

(Meta Materials occasionally refers to itself as META, so we'll use the two names interchangeably).

If you're serious about investing in Meta Materials, then I recommend that you read through the investor presentation. You might be surprised to learn about the broad array of possible applications for functional materials.

Here's a quick sampling of META's product offerings:

  • Transparent sensors and 5G antennas: flexible materials that enable sensors on foldable phones;

  • Transparent conductive film which provides de-icing and de-fogging for LiDAR-enhanced vehicles without blocking the camera/sensor functions;

  • Invisible antenna which enhanced indoor 5G and digital TV reception; 

  • Ultra-light, thin and flexible materials for solar panels: trap light that would otherwise be reflected, while increasing absorption; and

  • Materials for augmented-reality-enhanced eyewear: integrates optical elements for augmented reality with lens-casting technology.

Delving into Diabetes Management

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

And now we'll add one more to the list, that could be a real lifesaver.

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

The larger goal is to commercialize META's glucoWISE Home Hub product. And yes, this could be highly profitable for the company, but it also represents progress in the science of diabetes management.

In the press release, META co-founder and Chief Science Officer Themos Kallos provided an update which should encourage all stakeholders.

"We are continuing development of this system, seeking new strategic partners, and planning to conduct pre-clinical human studies scheduled to start this summer," Kallos announced.

The Bottom Line

There's a lot more to learn about Meta Materials, so please feel free to conduct your due diligence on this exciting company.

Then, take a look at the price action of TRCH/MMAT stock. As you'll see, the hype phase already came and went.

And with that, there's a chance to pick up shares of a high-potential company at a ground-floor price.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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

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