Ironically this very company, Altair nanotech is one that Forbes pilloried for including nano in its name in 2002.

he company was first known as Altair International; then in August 2001, it changed to Altair Nanotechnologies. It also rebranded its wholly owned subsidiary Altair Technologies as Altair Nanomaterials. The firm's name has had more alterations than Oprah's clothes!

So what else has changed besides the name? Altair Chief Executive Bill Long says it now aims to be the No. 1 supplier of nanomaterials worldwide. It doesn't deal with carbon nanotubes or buckyballs, but instead makes products like metal oxides that are used in sunscreens, paints and catalysts. The company was originally a shell company. Here is how the shell game worked in the '80s: A group would acquire a controlling interest in the stock of a publicly traded shell and then merge an operating company into it. Presto: a quick and easy public offering. Then if the new company had an exciting story--like nanotechnology--you could pump up the stock and then dump the shares.

In the case of Altair, its first business was developing the largest titanium ore body in Camden, Tenn. The idea was to take the titanium and turn it into pigment used in paints and coatings. Two years ago, Altair acquired a pigment process from BHP Broken Hill Proprietary, for about $9.5 million. Altair realized that it couldn't compete in the international pigment market, where firms in Australia and the U.K. were more established. Altair also realized that while pigments could sell on average for $1 a pound, nanoparticles--depending on what metal oxide--could sell from $8 to $60 a pound.

Now it is trying to produce nanoparticles of lithium titanate, which is used in rechargeable-battery applications. Long, 54, admits he knows little about the rechargeable-battery market, but is happy to report that there is a $6 billion potential. Now Altair is converting the recently acquired plant to nanoparticles. Revenue for 2001 totaled a whopping $43,000; the company is burning through cash at a rate of $640,000 per month and has lost nearly $14 million over the past two years. Its $23 million market cap is ridiculous. This mining-cum-specialty-materials firm has an uphill battle to garner market share against a host of competitors producing metal oxides. Just say no to this nano-come-lately.

5) Nanophase Technologies (nasdaq: NANX - news - people )

What about this Romeoville, Ill.-based company with a market cap of $87 million? Ah, finally a company that is indeed operating at the nanoscale. It makes metal-oxide particles and could be considered one of the few pure-play nanotechnology companies. It has a strong patent position, with 38 issued and applied that cover its production processes of making nanoparticles. Its plant has a capacity of 1 million pounds, and it is aggressively driving down manufacturing costs and increasing production capacity. In 1999, it took one operator for each reactor; today Nanophase is able to have one operator for four reactors. Founded in 1989 as a spinoff from Argonne National Labs, it went public in 1997 at $8 a share and is currently selling at around $6.

In 1999, it began rebuilding and restaffing, bringing on current CEO Joseph Cross to expand its client base. BASF (nyse: BF - news - people ) is its single-largest client, accounting for over 50% of last year's $4 million in revenue. Cross believes that with the ability to produce 120 different types of nanoparticles, mostly metal-oxides, and two shifts running five days a week, the company can continue to scale its process. Nanophase needs three to four times the current revenue base to break-even by late 2003, but Cross is optimistic. "Its undoubtedly the strongest opportunity that we've seen in multiple markets." The biggest markets are in personal health care, nanoparticles used for antimicrobial applications. This one is no nanoimposter, but I'd consider the uphill battle for significant revenue.

Well, Ron, your opinion of Altair and Nanophase is clear enough, but your motivation for bashing one and pumping up the other isn't. Altar isn't struggling at all financially, in fact it's one of the most financially sound nanotech companies going. And it isn't "trying" to produce titanate batteries, it's well into production on them. They will in fact power the new Tesla Roadster when it goes into production next year. I'll leave your post up since you're entitled to your opinion, but please check your facts before you post again.

Elvin,

The post was not put up correctly. Most of the above was from a 2002 quote from Forbes. I was commenting on the irony of a now strong firm with the name "Nano " in its title having been subjected to the same arguments about firms using the word "nano" simply to cash in on nano technology.

I have been following Altair on their website and on other posts. They have featured on the Motley Fool website in several posts in unflattering terms until recently. They seem to have turned a corner, in the PR stakes as well as products on the board. Your comment that they are producing batteries for Tesla is interesting. I not seen that comment anywhere else. I would be interested to know what difference the batteries make to the current impressive specs of the roadster.

Elvin,

Where did you come by the information that Tesla will be using altair nano batteries? Their current batteries are standard Li on

Like all posts submitted to nanotechbuzz, Ron's was posted exactly as submitted. Just be sure to check your formatting before submitting.

Elvin,

I assume your lack of response regarding the source of your information means the information is unreliable.

No, it means I don't reveal sources to people who don't reveal motives and who lift from 4 year old articles and call it a "comment".

You are obviously not interested in constructive comment. I can only assume the information you have put forward is rubbish. I'll take that as a touche on the "check before posting comments"