Bayesian Investor Blog

Paul W.K. Rothemund’s cover article on DNA origami in the March 16 issue of Nature appears to represent an order of magnitude increase in the complexity of objects that can self-assemble to roughly atomic precision (whether it’s really atomic precision depends in part on the purposes you’re using it for – every atom is put in a predictable bond connecting it to neighbors, but there’s enough flexibility in the system that the distances between distant atoms generally aren’t what would be considered atomically precise).
It was interesting watching the delayed reaction in the stock price of Nanoscience Technologies Inc. (symbol NANS), which holds possibly relevant patents. Even though I’m a NANS stockholder, have been following the work in the field carefully, and was masochistic enough to read important parts of the relevant patents produced by Ned Seeman several years ago, I have little confidence in my ability to determine whether the Seeman patents cover Rothemund’s design. (If the patents were worded as broadly as many aggressive patents are these days, the answer would probably be yes, but they’re worded fairly responsibly to cover Seeman’s inventions fairly specifically. It’s clear that Seeman’s inventions at least had an important influence on Rothemund’s design.)
It’s pretty rare for a stock price to take days to start reacting to news, but this was an unusual case. Someone reading the Nature article would think the probability of the technique being covered by patents owned by a publicly traded company to be too small to justify a nontrivial search. Hardly anyone was following the company (which I think is a one-person company). I put in bids on the 20th and 21st for some of the stock at prices that were cautious enough not to signal that I was reacting to potentially important news, and picked up a modest number of shares from people who seemed to not know the news or think it irrelevant. Then late on the 21st some heavy buying started. Now it looks like there’s massive uncertainty about what the news means.