New investment site MicrocapResearch.com off to a strong start with picks averaging a 49.3% documented/sustained gain in first month.

 

MicrocapResearch.com

 

 

 

 

 

I’m pleased to announce to subscribers of 3DPrintingStocks.com that I have launched a new, completely free subscription site at MicrocapResearch.com. Co-publisher, Harris Shapiro and myself will be uncovering some of the best small and microcap stocks we can find in the pharmaceutical/biotech, robotics, and other high-growth industries.

MicrocapResearch.com December articles and picks:

Company Ticker Date Article Published
and Closing Price
Closing Price
on 1/27/2015
Gain as of 1/27/2015
Rockwell Medical RMTI 12/12/14    @   $8.20 $ 11.07 + 35%
InVivo Therapeutics NVIV 12/17/14    @  $1.08 $2.17 + 101%
Sorrento Therapeutics SRNE 12/26/14    @  $9.50 $10.62 + 11.8%

 

Our latest pick is Vuzix Corporation (see article) which closed at $5.46 on day of publication.

Delayed quote:  

  • Vuzix Corporation6.4999-0.7001 -9.72%

So check out MicrocapResearch.com and subscribe now. Your email is kept private and never shared with anyone.

microcapresearch.com subscribe

 

 

 

 


 

Best wishes for profitable trading and investing!

Graphene 3D Lab Inc. gary siig

On January 15 of this year I wrote:

“I believe 2014 will see a return to some consideration of fundamentals in 3D printing stocks, and those that don’t have the fundamentals to support their current valuations will strongly underperform.”

As everyone is now well aware, 3D printing stocks as a group have had a very rough year. If you were to combine the market capitalizations of 3D Systems (DDD), Stratasys (SSYS), ExOne (XONE), voxeljet (VJET), Arcam AB (AMAVF) and Organovo (ONVO) into one number and track it, you’d see how dramatically these companies have shrunk in size this year.  The Printing Stock Index does exactly that…and it’s down about 50% this year. Materialise is down 20% from the IPO price and nearly 40% from its highs.

One 3D printing stock…and only one is up 50% over the last 4 months, and that company is Graphene 3D Lab Inc. (tickers GGG.V and GPHBF). As the chart below demonstrates, shares in Graphene 3D Lab have outperformed much larger peers DDD, SSYS, XONE, VJET since trading began on August 11 and I called it “The Best 3D Printing Stock to Buy Now.

3D printing stock

One can argue that shares in Graphene 3D Lab are also down over 50% from the highs, and they’d be absolutely right of course. Shares were hit hard along with all 3D printing stocks during the November-December period.


Graphene 3D Lab in 2015

Looking ahead, I believe (strongly) that Graphene 3D Lab will have a very solid year in 2015 and that shares will ultimately trade to new highs.

Why?

Because in Q1 2015, Graphene 3D Lab will be making the transition from a speculative R&D microcap company with no revenue history to commercializing graphene-enhanced filaments for use in many existing 3D printers according to the timeline in this investor presentation.

3D printing stock Graphene Commercialization

 

As Graphene 3D Lab advances to revenue production, it will attract a new group of investors who are less speculative…investors who will only invest in companies that generate revenue. That pool of investors is much larger by far than the company’s current investor base.

How much exposure Graphene 3D Lab will get to this larger pool of investors when they announce the availability of graphene-enhanced filaments for use in “existing”/ “present-day FDM printers” is anybody’s guess…but I suspect it will be a lot.

In addition to filament sales, Graphene 3D Lab may soon recognize revenues from 3D printer sales via the planned purchase of Boots Industries (web site). This acquisition could also expedite Graphene 3D Lab’s intention to launch a 3D printer “with the capability of printing functional and electronic devices.”


 

Launch a 3D printer “with the capability of printing functional and electronic devices”

To some, this may look like an overly ambitious statement from such a small company.

To me, given the jump Graphene 3D Lab has in graphene R&D, I think this goal is entirely feasible.

The CEO (Dr. Daniel Stolyarov) and COO (Dr. Elena Polyakova) are pioneers in graphene nanocomposites. In 2009 they launched Graphene Supermarket, a commercially successful supplier of Electrically Conductive Granulated Graphene3D Graphene Foams and other graphene-related products with over 7,000 customers globally. Their customer list includes NASA, Ford Motor Co., Honda, GE, Apple, Xerox, Samsung, Bosch, LG, Harvard University, IBM, MIT, Caltech, Yale, Princeton and Stanford Universities. Keep in mind that graphene was first isolated in 2004 and Drs. Stolyarov and Polyakova launched Graphene Supermarket a year before the 2010 Nobel Prize in Physics was awarded for the discovery of graphene.

Few people in the world have as much experience in graphene nanocomposites as the management of Graphene 3D Lab, and as a nanocomposite engineered for use in 3D printing, perhaps none have more R&D experience. I believe development of a 3D printer “with the capability of printing functional and electronic devices” is within reach of Graphene 3D Lab.

The video below features the CEO of Graphene 3D Lab in an overview of the company’s research, including the development of a 3D printed battery.


 

The bottom line

As Graphene 3D Lab moves from “research and development” to “revenue and distribution” of graphene-enhanced filaments for 3D printing, I expect the company will attract a much larger pool of investors in both 3D printing stocks and graphene-related stocks.

Whether you’re an existing shareholder or new to Graphene 3D Lab, I think this is a great time to average into a position. The well-documented “January effect” in small and microcap stocks and the Q1 launch of graphene-enhanced filaments for existing 3D printers should send shares higher again.


 

Graphene 3D Lab Inc. gary siig

 

 

Follow me on Twitter: @3DPrintingStock

Subscribe to 3DPrintingStocks.com for free (box in left upper corner of page) to get news, articles, interviews, and actionable information on 3D printing stocks delivered to your inbox.


 

Disclosure: I am long shares of Graphene 3D Lab. See additional disclosure in 8/11/14 article

Disclaimer: Opinions expressed are my own and should not be considered investment advice nor an invitation to buy or sell shares of any company mentioned on this site. Investors should perform their own due diligence and consult with a Registered Investment Advisor prior to making any investment decision. See sidebar for full disclaimer.

A friend of mine across the pond, Chris Barnatt, has uploaded a video reviewing 3D printing in 2014. Chris is a SME on 3D printing and future technologies and has authored several books on 3D printing, including 3D Printing: Second Edition which I read and highly recommend.

His 11 minute video below covers the biggest 3D printing technology and materials developments of 2014. It also includes discussions on DDD, SSYS, GGG.V, ONVO, MTLS, HPQ, TTD.V, and more.  I think you’ll enjoy it!


3D Printing 2014 Review – Christopher Barnatt


 

Graphene 3D Lab Inc. gary siig

 

 

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Tinkerine Studios logoTinkerine Studios (web site) which trades under ticker TTD.V on the TSX Venture Exchange and TKSTF on the U.S. OTC market has been hit hard along with other pure play 3D printing stocks, closing yesterday over 70% below the highs for the year. Because Tinkerine remains under the radar of most investors in 3D printing stocks, shares are often thinly traded and volatile.

However, I believe the volatility may be to the upside in 2015 based on a conversation I had with the CFO, Martin Burian recently…a conversation which I received permission to share publicly, in which he stated: “Given our current sales trajectory, our stated goal of achieving $5 million annualized run rate in sales by Q4 2015 is within reach”


For those new to the company, Tinkerine Studios began trading in March of this year following 2 years of success in manufacturing award-winning printers targeting the maker community. The Tinkerine brand name is derived from early DIY 3D printing adopters, often referred to as “tinkerers.” Based in Vancouver, Tinkerine is Canada’s leading 3D printer manufacturer.

During Q2 of this year Tinkerine had a soft launch their new flagship printer the DittoPro, for the prosumer and education markets. Last month the DittoPro won high praise from MAKE Magazine’s 2015 Ultimate Guide to 3D Printing. The magazine’s editors who tested the DittoPro concluded:

“The DittoPro is a great-looking machine with print performance to match. It scored as well as some of the best printers we tested, while far less expensive than most of them… we believe that the combination of good design and easy to use software would make it ideal for new users.”

If you look at the company’s financials on Sedar, you’ll see that over the last 9 months revenue generation has been modest with just under $250,000 reported. However, the majority of that revenue came in the most recent quarter ending 9/30/2014, where the company reported a loss of only .01/share. This compares to a loss of .06/share in Q2, and the improvement is due to early sales of DittoPro hitting the books in Q3.

What is the possibility of Tinkerine turning that .01 loss into .01/share gain some time next year?  I’d say it’s much higher than voxeljet and ExOne have of turning earnings positive.

Now, I’m not arguing that Tinkerine should have a $130 million – $230 million market cap as voxeljet and ExOne have… but  a market cap of $6.5 million is absurd.


Why Tinkerine will have a record Q4 followed by rapid acceleration of sales and net income in 2015

  • Recent stamp of approval and exposure for DittoPro printers from MAKE Magazine in their “2015 Ultimate Guide to 3D Printing” This came out after the Q3 was reported.
  • Tinkerine’s online STEM/STEAM education pilot (see press release) is in full swing from now – January 31. The pilot includes over 250 educators and administrators from Canada, the USA, Europe, and Asia.
    See also: Tinkerine U web site, article in 3DPrintingIndustry.com, and video below.


Tinkerine U’s academic lessons are written by teachers, for teachers, and are aligned with government/state prescribed learning outcomes.

Even very modest penetration into the education market with DittoPro printers could, (and I believe will), have a big impact on revenue and earnings growth in 2015

Director of Business Development, Rob Smith, told me that “The pilot is going well and includes user testing,  data collection and analysis running to late Q1 2015.  Q2 we be the official Tinkerine U launch, comprised of Academia course content, and STEAM based learning content with continuous upgrades and developments”

  • Tinkerine will be at CES 2015 January 6-9, showing off the new DittoPro printers along with Tinkerine U educational content for teachers. Exposure at the world’s largest consumer electronics trade show will undoubtedly bring awareness to the Tinkerine brand, DittoPro, and the company’s online education platform
  • In Q3, Tinkerine brought in Ben Yan as Channel Manager. Prior to joining Tinkerine, Ben was in charge of global sales at Hewlett-Packard, something I suspect most investors in 3D printing stocks aren’t aware of yet. I also suspect most aren’t aware that Tinkerine’s board includes the former Director of Distribution at MakerBot Industries, RJ Wafer.

 

2015 Cash Flow

In my conversation with CFO Martin Burian, he said he believes the company will be cash flow positive within the next 12 months, that:

Given our current sales trajectory, our stated goal of achieving $5 million annualized run rate in sales by Q4 2015 is within reach”

and

“We would also show a profit once we achieve that sales level.”

While there are no guarantees, I like the risk/reward at these share price levels…a lot. Show me a 3D printer manufacturer with a market cap of $6.5 million that has a genuine shot to turn EPS positive sometime next year, and I’ll buy those shares also.

As for cash burn rate…”Our rate of expenditure/burn is approx $150k a month and declining as sales increase.” I think investors have priced Tinkerine as though a dilutive financing is already in the cards. However, with the company’s $1.8 million cash balance in the Q3 report is combined with increasing sales of DittoPro and a concurrent decreasing cash burn rate, the need for a secondary offering appears less likely.

 

Given the market cap of only $6.5 million and the realistic potential for the company to turn cash flow (and possibly EPS positive during 2015) and I believe the risk/reward in Tinkerine Studios is very favorable here.

 


 

Graphene 3D Lab Inc. gary siig

 

Follow me on Twitter: @3DPrintingStock

Subscribe to 3DPrintingStocks.com for free (box in left upper corner of page) to get news, articles, interviews, and actionable information on 3D printing stocks delivered to your inbox.


 

Disclosure: I am long shares of Tinkerine Studios Ltd.  I was not paid by the  company or any third party for this article.

Disclaimer: Opinions expressed are my own and should not be considered investment advice nor an invitation to buy or sell shares of any company mentioned on this site. Investors should perform their own due diligence and consult with a Registered Investment Advisor prior to making any investment decision. See sidebar for full disclaimer.

3D Printing Stocks GIVE backThe holiday season is in full swing and I’m asking investors in 3D Printing Stocks to GIVE to a worthy charity.


“No one has ever become poor by giving.”

 ~Anne Frank

This obviously hasn’t been a good year for most 3D printing stocks and many investors in the space are no doubt wishing for a return to those crazy days of 2013 when all you could do was make money in the space. There’s risk for financial loss in any investment – something we’ve all experienced at one time or another. But let’s face it, people investing heavily in the market…in any class of equities, are typically more financially fortunate (even after a bad year for their portfolios) than most of the population.

When 3D Systems broke former support levels on December 8th and continued its plunge, pulling down other stocks in the space (along with my account balance), I thought….”This is terrible- it can’t get any worse than this!”  When I returned to my senses later that evening I realized the simple truth that “it”, can get worse…much worse.

Now, “it” is not about losing money in a temporarily out-of-favor investment space as 3D printing stocks have been for most of 2014. “It” is about our quality of life…having the simple needs of food, clothing and shelter met…the most basic of things that I doubt anyone reading this struggles with on a daily basis. There are thousands of soldiers now home with traumatic limb and brain injuries or mental health issues. Their tour in the Middle East may be over but their lives go on- forever changed, forever wounded physically or psychologically. Children fighting cancer and adults confined indoors by illness, age, or disability…the list of people for whom life is a struggle every day goes on.

So, for those that really are in need, for whom “it” really cannot get much worse, I’m asking you to give.

There are now over 10,000 subscribers to this site according to my  WordPress admin. panel:

Subscribers to 3D printing stocks

and I’m asking each and every one of you to give to a worthy charity this holiday season. It doesn’t matter what your religious views are, or if you’re conservative, liberal, black, white, gay, straight, red state, blue state… this is the time of year to GIVE to those less fortunate.  


Here are some worthy causes you can give to right now.

E-NABLING THE FUTURE: A network of passionate volunteers using 3D printing to give the World a “Helping Hand.”

The American Red Cross

The American Cancer Society

St. Jude Children’s Research Hospital

The Wounded Warrior Project

Alzheimer’s Foundation of America

Fisher House Foundation Fisher Houses provide military families housing close to a loved one during hospitalization for an illness, disease or injury.

American Kidney Fund

Meals On Wheels Association of America  helps keep 2.5 million seniors healthy, safe and living independently in their own homes each year.

 

If none of the above appeal to you, I’m sure you have a worthy local charity or know a deserving person or family in financial need right now that you can help.

 

So I’m asking you, if you haven’t done so already,  please GIVE this holiday season.  Be charitable. Be generous. You can make a positive difference in someone’s life.

 

“From what we get, we can make a living; what we give, however, makes a life.”

~Arthur Ashe


 

Graphene 3D Lab Inc. gary siig

3D Printing Mutual FundAs the well known pure play 3D printing stocks continue to make new lows and end of year tax loss selling in many of these stocks is upon us, I thought I’d check my balance in the 3D Printing and Technology Fund (see web site) which launched earlier this year.

This is a long term  investment for me, so I don’t check my balance often. In fact, this was the first time in months for me to log into my account there.

Given the weakness in the large pure play 3DP stocks, I braced myself for a big decline in my account balance. I was pleasantly surprised to see my balance wasn’t nearly the train wreck I was prepared for and immediately processed an electronic funds transfer to double my position in the fund.

The chart below pretty much tells the story.

3D Printing and Technology Fund chart

 

I wrote about the 3D Printing and Technology Fund when it was Morningstar’s #1 performing fund back in July (see article) and concluded:

For investors looking to “leave the driving” to fund managers that have an insider’s access to the industry and to diversify their 3D printing portfolio, TDPNX may be the ultimate fit.

I guess I forgot about that statement when I was logging in to check my account balance today!

The fund not only spreads risk across the 3D printing industry, it invests in high tech stocks outside of 3D printing. GE and ALGN are two of the funds top ten holdings in the fund’s most recent fact sheet.

The fund is managed by the father and son team of Alan and John Meckler who are well known in the 3D printing industry. As many reading this may already know, Alan Meckler is also the CEO of MecklerMedia Corp. (MECK),  the producer of the Inside 3D Printing Conference and Expo events worldwide.

No wonder my 3D Printing and Technology Fund account balance was a pleasant surprise when I checked it today.

 

Coming soon: An update on Graphene 3D Lab (GGG.V / GPHBF)

 


Graphene 3D Lab Inc. gary siig

 

 

Follow me on Twitter: @3DPrintingStock

Subscribe to 3DPrintingStocks.com for free (box in left upper corner of page) to get news, articles, interviews, and actionable information on 3D printing stocks delivered to your inbox.


 

Disclosure: I am long shares of the 3D Printing and Technology Fund. I was not paid by the fund, any company, or third party for this article.

Disclaimer: Opinions expressed are my own and should not be considered investment advice nor an invitation to buy or sell shares of any company mentioned on this site. Investors should perform their own due diligence and consult with a Registered Investment Advisor prior to making any investment decision. See sidebar for full disclaimer.

CamtekIn news this morning, Camtek (CAMT) announced the company was chosen as the Automated Optical Inspection (AOI) System supplier for a leading semiconductor manufacturer.

 

Camtek states that “Initial orders from Camtek’s new Eagle product line totaling $2.8 million have been received and the installation of these systems will be completed in the coming weeks.”

I believe “initial orders” implies there’s more to come.

I encouraged subscribers to buy Camtek shares under $3.00  Camtek (CAMT) selloff overdone following Q3 earnings, and this contract win further supports my belief that this company is undervalued based on fundamentals.

Camtek is also launching an innovative, patented, inkjet-based 3D printer for the precise application of solder mask to printed circuit boards. The “Gryphon” printer recently passed beta testing and is available for PCB manufacturers to demo at the company’s California center. The company believes PCB manufacturers will realize considerable savings in the manufacturing of printed circuit boards using the Gryphon, and that the solder mask deposition by the Gryphon printers is superior in quality to current technologies in use.

Only 2 analysts follow the company, and they have an average EPS estimate of .33/share for 2015, representing 120% growth in earnings with a forward PE of 10.  While it remains to be seen if Camtek can grow EPS as rapidly as analysts are projecting, the company’s forward growth will be 100% organic with no dilution to shareholders. The company has a strong balance sheet and no long term debt which should facilitate commercialization of the Gryphon printer in 2015.

 


 

Graphene 3D Lab Inc. gary siig

 

Follow me on Twitter: @3DPrintingStock

Subscribe to 3DPrintingStocks.com for free (box in left upper corner of page) to get news, articles, interviews, and actionable information on 3D printing stocks delivered to your inbox.


 

Disclosure: I am long shares and options of CAMT. I was not paid by any company or third party for this article.

Disclaimer: Opinions expressed are my own and should not be considered investment advice nor an invitation to buy or sell shares of any company mentioned on this site. Investors should perform their own due diligence and consult with a Registered Investment Advisor prior to making any investment decision. See sidebar for full disclaimer.

3D SystemsShares of 3D Systems (DDD) are precariously close to their 52 weeks lows of 32.64 set on November 14, and traded as low as 32.68 today.

While I’m hopeful we may be seeing a double bottom being made today and wrote why I was a heavy buyer of the shares recently, the stock will either bounce or break support in the next 24-48 hours.

As one of the most heavily shorted stocks on the NYSE, short sellers are able to easily cover now as many longs are likely selling for tax loss purposes as the year winds down.

3d printing stocksA break below previous support easily could lead to accelerated selling, so I suggest investors in the stock mentally prepare for that possibility and have a plan in place.

What am I doing? For now, I’m watching.

I won’t fight the market in DDD, despite my longer term positive views of the company and the overall industry.

If the stock manages to bounce on any news, more insider buying, or just from oversold conditions, then I will add shares as I’d feel more confident that a double bottom is in place. Should a double bottom be confirmed, then I’d expect a nice move up to follow over the next few weeks heading into 2015.

Conversely, should support fail, then I’ll be a seller as that prior support will turn to resistance and I’ll look for re-entry below $30.

 


Graphene 3D Lab Inc. gary siig

 

3D systems

Follow me on Twitter: @3DPrintingStock

Subscribe to 3DPrintingStocks.com for free (box in left upper corner of page) to get news, articles, interviews, and actionable information on 3D printing stocks delivered to your inbox.


 

Disclosure: I am long shares of DDD. I was not paid by any company or third party for this article.

Disclaimer: Opinions expressed are my own and should not be considered investment advice nor an invitation to buy or sell shares of any company mentioned on this site. Investors should perform their own due diligence and consult with a Registered Investment Advisor prior to making any investment decision. See sidebar for full disclaimer.

Arcam In news this morning, Arcam AB (tickers ARCM.ST on the NASDAQ OMX in Stockholm and AMAVF as the U.S. ADR) announced an order of 5 of the company’s Q10 3D printers by Lima Corporate, (web site). Based in Italy, Lima Corporate develops, manufactures and markets joint replacement and repair solutions including implants for hips, knees, and shoulders.

Arcam AB Q10
Arcam Q10 3D Printer

Arcam also reported the sale of another Q10 system by an unnamed customer in a second press release this morning.

For Q3 Arcam reported the highest level of organic growth I’m aware of in publicly traded 3D printing stocks, with 125% sales growth, and for the January-September period, Arcam earnings were .32/share vs. .07/share.

Arcam took in 5 system orders in Q3, (up from 4 systems in the prior year period). In the last 3 months sales at Arcam have been fast and furious with announced orders for 11 3D printers from customers in Asia, the U.S., Europe, and China.


 

Follow me on Twitter: @3DPrintingStock

Subscribe to 3DPrintingStocks.com for free (box in left upper corner of page) to get news, articles, interviews, and actionable information on 3D printing stocks delivered to your inbox.


 

Disclosure: I am long shares of Arcam.

Disclaimer: Opinions expressed are my own and should not be considered investment advice nor an invitation to buy or sell shares of any company mentioned on this site. Investors should perform their own due diligence and consult with a Registered Investment Advisor prior to making any investment decision. See sidebar for full disclaimer.