Why does good news, effect some stocks negatively?

As all Insiders know, the stockmarket can be fickle, to say the least!

But if you are CEO of Weebitnano (ASX:WBT), the past few months must have been down-right infuriating.

The company is a leader in the development of next generation computer memory technology, specifically ReRAM storage. It argues that their tech is not only proven, but more appealing than the competition because it uses the same base materials used in all chip manufacturing today, Silicon Oxide. [More on the Weebit business at the bottom of this post]

In the last three months Weebit has made four significant announcements, that by many measures, should have had a positive effect on the share price.

Yet the share price has gone down, and is currently trading around an almost historic low.

RECENT WEEBITNANO ANNOUNCEMENTS

• Weebit Nano appoints Kitec Design as Korean market representative

• Weebit Nano and Leti file two new patents optimising ReRAM performance

• Weebit Nano and CEA-Leti to demonstrate brain-inspired neuromorphic demo

• Weebit Nano and XTX Technology sign a Letter of Intent

Most recently Weebit announced they've signed a Letter of Intent with a Chinese software developer, XTX and, through the relationship, is working with a Tier Two company to develop a solution to use their tech to embed into one of the potential customer's product.

XTX is a semiconductor company and according to Weebit, a leading provider of flash memory chips, providing a variety of different Flash-based Non-Volatile Memory (NVM) solutions to about 2,000 customers.

So what happened to Weebit's shareprice after the LoI XTX news? You guessed it. Down.

I caught up with CEO Coby Hanoch recently and we discussed the market's reaction to their recent announcements, and about their work on developing the embedded chip for the Tier Two company, which is yet to be named. Since recording this interview the company has gone into a trading halt pending a capital raising.

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Weebit Nano is a leader in the development of next generation computer memory technology, and plans to become the new industry standard in this space. Its goal is to address the growing need for a significantly higher performance and lower power computer memory technology. Weebit Nano’s ReRAM technology is based on fab-friendly Silicon Oxide, allowing the company to rapidly execute, without the need for special equipment or preparations. The company secured several patents to ensure optimal commercial and legal protection for its ground-breaking technology. Weebit Nano’s technology enables a quantum leap, allowing semiconductor memory elements to be significantly cheaper, faster, more reliable and more energy efficient than the existing Flash technology. Weebit Nano has signed an R&D agreement with Leti, an R&D institute that specialises in nanotechnologies, to further develop SiOx ReRAM technology

We do not recommend or advise to buy or sell shares in Weebitnano. The InsideMarket Private Fund does not own shares in Weebitnano at the time of publishing this post. We also have not received any payment from the company for this coverage. Disruptive technology stocks should be considered very speculative, high-risk, and extremely volatile. There are significant risks inherent in developing new technologies that are not discussed here. You should always seek professional advice before considering any share purchase or sale. Please read our full disclaimer.