Nano means extremely small -- and in mathematics, it means one billionth. Nanotechnology is the science of manufacturing and utilizing extremely small particles and devices, sometimes as small as single atoms and molecules. A nanometer is one-billionth of a meter, which is approximately 80,000 times thinner than a human hair. Nanomaterials include carbon nanotubes used in electronics, body armor and cancer treatments; nanoclays, which are used in composite materials; and nanoscale metals, alloys and oxides, used in the energy and renewable-energy industries.

The following are the top stocks in the nanotechnology field, all with market caps over $1 billion and ranked by PEG ratio.

Amkor Technology (AMKR) is in the business of micro-electromechanical systems, microelectronic assembly and testing. The stock has a P/E of 6 and a PEG of 0.74.

ABB (ABB) conducts a kind of nanotechnology research that relates to surface structures and material parameters. The stock has a P/E of 14 and a PEG of 0.76.

Taiwan Semiconductor Manufacturing (TSM) manufactures microprocessors and microcontrollers. The stock has a P/E of 14 and a PEG of 0.76.

Boeing (BA), along with Ford Motor (F) and Northwestern University, formed an alliance to conduct nanotechnology research. It has also produced nanotech electromagnetic oscillatory jet actuators. The stock has a P/E of 11 and a PEG of 0.82.

Eaton (ETN) makes micro and nano connectors. The stock has a PE of 12 and a PEG of 0.85.

JDS Uniphase (JDSU) produces a power delivery system that can be used to drive sensors, gauges, actuators, nanotechnology and micro-electromechanical systems. The stock has a PEG of 0.86.

Hewlett-Packard's (HPQ) QSR group at HP Labs researches the fabrication of nanometer-scale structures. The stock has a P/E of 13 and a PEG of 0.88.

RF Micro Devices (RFMD) makes and sells radio frequency components and system solutions for the mobile communications industry. The stock has a P/E of 122 and a PEG of 0.93.

Analog Devices (ADI) is involved in nanotechnology and MEMS technology with its three-axis accelerometer, a motion signal processing product and consumer applications of nanotechnology. The stock has a P/E of 13 and a PEG of 0.98.

Cabot Microelectronics (CCMP) develops proprietary Advanced Nanoscale Surface Technology is designed to deliver angstrom-level finishes. The stock has a P/E of 19 and a PEG of 0.99.

An Excel list of 49 nanotechnology stocks, along with a description of their connections to nanotechnology, that can be downloaded, sorted, changed and added to, can be found at WallStreetNewsNetwork.com.

This is simply another option to find value in this volatile market.


A note from James Altucher:

Every weekend I send an email to Jim Cramer and several hedge fund managers about the most interesting portfolios posted on Stockpickr that week. Usually those portfolios not only list stocks according to a theme but also offer significant analysis as to why the stocks are cheap.

Here are some examples:

Stocks related to drilling the Marcellus Shale

MLPS with yields above 7%

Microcaps trading for less than tangible book

Stocks that do well after Hurricanes

Here's the challenge: Build a portfolio at Stockpickr.com with great analysis, and send me the link. Each great portfolio (with analysis) will get posted on TheStreet.com with your byline (as a "Stockpickr Guest Columnist") and will be included in my email I send to Jim and the other
hedge fund managers on my list.


Posted on Aug. 6, 2008