Hydrograph’s Graphene Breakthrough: “Check Yourself, Before You Wreck Yourself”

Understanding Biases That Prevent 100x Stock Returns

Five key cognitive biases that cause investors to undervalue groundbreaking companies like HydroGraph Clean Power Inc., potentially missing out on 100x or 1000x stock returns by skipping thorough due diligence. By illustrating how these biases manifest in the graphene industry, it urges readers to self-reflect and overcome mental blockages to better evaluate disruptive clean energy technologies.

Status Quo Bias:

People prefer familiar, established technologies (like traditional carbon materials or silicon-based alternatives) over disruptive innovations, even when evidence shows superiority. For HydroGraph, this manifests as reluctance to shift from conventional graphene production methods, despite their inefficiencies. Investors skip due diligence, assuming the “tried-and-true” status quo is safer, undervaluing HydroGraph’s scalable, eco-friendly process that challenges the industry norm.

Availability Heuristic:

Judgments are based on readily available examples, such as past graphene hype cycles and failed startups, leading to quick dismissal without deeper investigation. The media’s focus on early disappointments (e.g., low-purity production failures) makes negative stories more “available” in memory, causing investors to overlook HydroGraph’s verifiable 99.8% Carbon 0.2% Oxygen perfection and its 100% Crystalline SP2 Bonding breakthrough, with third-party ISO 9001 certifications, resulting in undervaluation.

Confirmation Bias:

Individuals seek information confirming preconceptions, such as viewing all nanomaterials as “overpromised and underdelivered.” Skeptics of clean tech might ignore positive data like HydroGraph’s low-energy Hyperion System or partnerships (e.g., in battery enhancements), focusing only on risks or historical flops, preventing thorough due diligence and fair valuation.

Anchoring Bias:

Reliance on initial information, like HydroGraph’s low stock price in its early public trading (post-2021 listing) or comparisons to defunct graphene firms, anchors perceptions low. This bias discourages updating valuations based on new evidence, such as 2025 milestones in sustainable packaging research or market projections, leading to persistent undervaluation without proper analysis.

Loss Aversion:

The fear of losses outweighs potential gains, making investors risk-averse toward emerging clean tech like HydroGraph’s. Despite the company’s green advantages and growth potential (e.g., addressing the $2.5 billion graphene market), people avoid due diligence to prevent “wasting time” on what they perceive as a high-risk bet, missing out on the breakthrough’s transformative value.

So, ask yourself…

What biases are preventing you from doing proper due diligence?

I’m hearing from friends this week, that they’ve been following the due diligence journey I’ve been on. It’s been awesome to hear how some have dug in and gotten long the stock, and now our sharing in the excitement.

But, it saddens me, when I hear “Congrats, I’ll have a look and probably buy some when it pulls back”. This is another default behavior that comes when people see a stock that has spiked as $HG $HGRAF has done in the last couple weeks.

I get it though… people are busy… I was too busy… for two years failed to get around to digging in despite my own son saying it looked very exciting. Now I’m super excited as I think, “I lucked out” and finally did the due diligence required to build my convictions right as we reach the “where were you when moment” for the company. When did you first hear about Hydrograph and what did you do? “Oh, I was busy doing XYZ and didn’t have time to take a look… missed it and then just never bothered to look. Wanted to avoid looking at it actually, because it was painful to watch.”

Do Your Own Due Diligence

There is no substitute for your own due diligence. This is Not investment Advice! Make no mistake though. training your brain to overcome your biases is great life advice. It applies to so many things we struggle with personally and as a society. It starts with simply believing in yourself. As Dr. Sorensen says, “it’s not esoteric”. Everyone can understand it and they simply need look.

For now, I’m obviously at the center of the spark that shined a light on the story. I joke that like Hydrograph’s detonation synthesis method for making graphene. There’s currently a “Human Biopsychological Pattern Recognition Exothermic Reaction” taking place. Dopamine is the hydrocarbon, global stock markets represent the chamber and Hydrograph’s stock price is get white hot. It’s important to understand that there’s so many very influential stock / financial industry influencers looking at this stock now and quietly buying. Like I did. Soon they will have their positions and begin talking about it. Just like I did. The buzz will cascade out in waves. More spiking of the stock chart. More attention, more smart people doing due diligence and buying. In a couple weeks, everyone on social media will be a graphene expert and be fighting for position as biggest bull on the stock and sector. $1000 targets will replaced with $1 trillion market caps and of course people are already starting to say this could become the largest company in the world. A seemly ridiculous statement for a company that barely had a market cap a few months ago. (Sub $50 mln USD)

The next major catalyst for the stock isn’t so much the things being spoken about in recent CEO Kjirstin Breure’s interviews. These include, LOI with a major gas plant for Texas facility, signing contracts, application to move to a bigger exchange perhaps Nasdaq. or even a possible Dept of Defence contracts the likes of which we recently saw MP Minerals get (see article my son wrote on rare earths just prior MP getting it). No, all these things are awesome but not what I’m most excited about.

As a 30+ year veteran of small cap investing, I’m most excited to watch as this company simple sees its market cap grow. As they breach $1 billion, all of a sudden a new brand of investor will care. My home town favourites, OMER’s, Teacher’s and CPP’s. They are behemoth funds managed for Ontario, Canada and Ontario Teachers pension plans. They do deep due diligence, are considered smart money and have all done a very good job of performing over the years. I’ve had the opportunity to meet many of the portfolio managers over the years and have always enjoyed chatting with them. Smart, knowledgeable, well educated, worldly people full of cool stock stories and a vast array of knowledge.

Anyhow, they will be all over this stock as the market cap grows. They just simply don’t care and don’t have the time to look unless they can get $100 mln in to an investment. If just one tries now, I doubt they could get 10% of the company for that little money. Attempting to would drive the stock up another 2-3x. They also don’t have typical biases. In fact, like me, they are wired to thrive on trying to get into investments early and their bonuses depend on it.

Understand clearly, It’s not bias, its just a market cap filter and its now getting on the radar. There’s now a buzz on Bay St. about this company. “Is it the real deal?”. Watch my interviews with Kjirstin Breure and Dr Sorensen. I trust them both. Dr Chris Sorensen’s age and life history makes him completely unimpeachable in my mind. He’s the sort of person you only need to be around for a few minutes to feel that you could trust him with your children or your life for that matter. So, do the damn due diligence. You can’t buy conviction, you must do the work.

My book “The Energetic Investor”, is available on amazon, its about doing hard work and loving it. Mind, Body and Finance.