Sintx Joins List of Highly Speculative Covid-19 Plays

The novel coronavirus pandemic is shining a light on an array of previously anonymous micro- and small-cap companies, with Sintx Technologies (NASDAQ:SINT) being an example of that trend. It’s clear the pandemic is benefiting Sintx Technologies stock, which is 176% higher since mid-June.

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Over the last three months, Sintx delivered a nearly five-fold gain. All that good work earns SINT stock a market capitalization of $46.8 million. By the standards of small companies that are being bid higher this year due to involvement in the fight against Covid-19, Sintx is tiny.

Where Sintx is separated from other names in the Covid-19 fray is that the company isn’t a vaccine developer nor is it a manufacturer of diagnostic products. The Utah-based company, which was founded in 1996, makes medical implants, some of which are used in patients with spine ailments.

Sintx’s implants made of silicon nitride ceramic are, according to the company, superior to competing products made of other materials, such as titanium.

“These powerful antibiotic and healing properties contributed to the rapid growth of Sintx technologies and Si3N4,” according to the company. “During this time, silicon nitride has proven effective in more than 35,000 spinal fusion implants leading to the award of more than 60 patents.”

Is It a Credible Coronavirus Contender?

Many of the companies, including some smaller players, currently engaged in the battle against Covid-19 are sensible participants. Those include Gilead (NASDAQ:GILD), Moderna (NASDAQ:MRNA) and Johnson & Johnson (NYSE:JNJ). That is to say a small maker of spinal implants, such as Sintx, doesn’t necessarily pop off the screen as a contender to vanquish the coronavirus.

Risk-tolerant investors shouldn’t be too hasty in assailing in Sintx’s participation in this arena. Not when the company’s sintered silicon nitride powder delivered solid trial results.

“The antiviral data are consistent with the well-established anti-bacterial properties of Sintx’s silicon nitride, and with previously reported effectiveness against several single-strand RNA viruses,” said CEO Sonny Bal last month. “Additional testing at independent, outside laboratories is in progress to corroborate the effectiveness of silicon nitride against SARS-CoV-2.”

That news led to a pop of more than 160% in a single day for Sintx Technologies stock. Two days later, the stock added almost 48%. Undoubtedly, the company’s approach to fighting Covid-19 is unique, but it is practical and if it proves credible, it could provide exposure to a variety of potential new customers.

The Sintx is using silicon nitride to fortify products such as masks and protective gear to further reduce transmission of the virus. From there, the company “envisions incorporating its silicon nitride into high-contact surfaces such as medical equipment, screens, countertops, and doorknobs in locations where viral persistence is a concern, such as homes, casinos and cruise ships.”

Bottom Line for Sintx Technologies Stock

Not making testing equipment or developing vaccines, but offering products aimed at dealing with the coronavirus is a movie investors have already seen this year and with, not surprisingly, smaller, previously unheard of companies.

That’s not a knock on Sintx, but it underscores some of the risk associated with this name. A successful vaccine could create a “sell the news” event in this stock with market participants assuming the company’s pitch is rendered moot with the existence of a vaccine.

On the upside, there’s the “ounce of prevention is worth a pound of cure” angle. It’s not unreasonable to assume that one positive emerging from Covid-19 is that businesses are prioritizing cleanliness and health protocols more than ever before.

If Sintx’s silicon nitride can prove effective in the “surface war” against the coronavirus, there’s potential upside to be had because casino and cruise operators should consider the product, assuming they’ve learned lessons from this year’s shutdown.

Todd Shriber has been an InvestorPlace contributor since 2014. As of this writing, he did not hold a position in any of the aforementioned securities.

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