The Inside 3D printing Conference and Expo in beautiful Melbourne, Australia is now underway.

Inside 3D Printing Conference and Expo - Melbourne

 

 

 

 

 

 

Melbourne 3D printing conference and expo

Inside 3D Printing Conference comes to Australia

This is the first major 3D printing conference in Australia, and at the opening keynote address delivered by Terry Wohlers of Wohlers Associates, it was standing room only.

Milan Brandt, Professor of Advanced Manufacturing at RMIT University will give tomorrow’s keynote address at 9 am, and I’m looking forward to his presentation, “Additive Manufacture: The Next Industrial Revolution” as well.

 Inside 3D Printing Conference Melbourne

Right now (10:00 am Melbourne time) the exhibit hall is open and bursting with attendees, so I’m glad I got a few pics early this morning before the crowds arrived.

 

Inside 3D Printing Conference, Melbourne, early morning July 9

 

I’ve already met some of my Aussie subscribers, and am looking forward to making new friends here in the world’s most livable city, Melbourne.

 

Gary Anderson…..Follow me on Twitter: @3DPrintingStock

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Tinkerine Studios Ltd. (TTD.V) on the TSX Venture Exchange and (TKSTF) on the U.S. OTC is the only pure play 3D printer manufacturer in Canada. While Tinkerine began trading publicly only recently, the company has an established sales history in manufacturing award-winning 3D printers and has made strong, first-mover inroads into Canadian and North American schools. Tinkerine is one of the few companies focused on providing the entire 3DP support ecosystem: easy to use hardware and software, 3DP education online course curriculum and materials.

I believe Tinkerine Studios possess four clear-cut competitive advantages that will drive success and position Tinkerine in two of today’s fastest growing technology markets: prosumer grade 3D printing and Education Technology (ED Tech).  Combined these two markets of the economy represent a $90B market opportunity, expected to grow to $257B by 2017 according to (http://www.enz.govt.nz/news/growth-in-edtech-great-for-nz-exports).

These competitive advantages are:

  1. Strength of existing products + new product launch
  2. Strength of management
  3. First mover advantage for multiple product sales to Canadian and North American schools
  4. Cash position from public launch

In this article, I’ll provide a brief overview of Tinkerine, discuss consumer and prosumer 3D printer market segment growth, and explore the strong competitive advantages this newly trading company has.  I believe these competitive advantages will ultimately reward investors with higher share prices as the company grows revenues and eventually, net income


Tinkerine Studios Overview

Tinkerine Studios logo
Founded in 2012, Tinkerine Studios develops, manufactures, distributes, and sells 3D printers, software and materials for the consumer, prosumer, and education markets.

 

Headquarters: Vancouver, B.C.

Shares Issued/Outstanding: 41.6 Million

Market capitalization: $17.8 million USD 

June 2014 Investor Presentation

 

 

Consumer 3D Printing Market Growth

Tinkerine Studios is directly targeting the rapid growth in the consumer grade printer market.

Gartner research director Pete Basiliere projects consumer market printer shipments will “rise 123.3% from 2015 to 2016 and by 149.3% from 2016 to 2017″ as 3D printing continues to move toward mainstream adoption.

 

 

Consumer 3D Printing Market Growth

Tinkerine Studios is directly targeting the rapid growth in the consumer grade printer market.

Gartner research director Pete Basiliere projects consumer market printer shipments will “rise 123.3% from 2015 to 2016 and by 149.3% from 2016 to 2017″ as 3D printing continues to move toward mainstream adoption.

Tinkerine Studios Consumer 3D printer adoption chart

Tinkerine studios

Echoing Gartner’s extremely fast growth projections for consumer grade printer sales is the Wohler’s Report 2014 release which notes that much of the growth in 3D printing over the next few years will be driven by “sales of under $5,000 personal 3D printers.”

Also, in an April 2014 press release Juniper Research writes that sales of consumer 3D printers will exceed 1 million units by 2018, rising from just over an estimated 44,000 this year.

As a pure player in the consumer 3D printing segment, this growth presents an enormous market opportunity to Tinkerine Studios.  More importantly, I believe Tinkerine Studios has the capacity and contacts within its management and team of advisors to significantly expand its educational offering well beyond Canada and the US, positioning it to become a dominant international player.

 

 

Product Strength

Tinkerine Studios has an established sales history with their “Litto”, “Ditto”, and “Ditto+” 3D printers and received industry praise from the magazine Make who awarded the Ditto+” in their “Surprise Hit” and “Best Value” categories.

 

Not resting on their laurels, Tinkerine is now launching their newest 3D printer, the “DittoPro” for the prosumer market. This new machine has superior resolution, a slightly larger build volume and a lower price than the MakerBot Replicator and should be a strong competitor in the space.

DittoPro MakerBot Replicator 
Build Volume 469 cubic inches 456 cubic inches
Layer Resolution 50-300 microns 100-300 microns
Price $ 1,899 $2,899

Due to the Tinkerine-developed open C-frame design, larger components can be printed with DittoPro while at the same time the machine’s desktop footprint is 43% smaller. DittoPro also features a quick-swap extruder nozzle, a removable glass build platform designed for good adhesion, an intuitive user interface with instant printer status feedback, sound dampeners for ultra-quiet operation, and a quick release system for easy access and removal of printed objects.

Another comparative advantage of the DittoPro is the machine’s aesthetics. It’s just a great looking 3D printer as you can see in this launch video:

 

As investors are aware, new product launches are a key driver for increased revenue and earnings for young companies. Based on the serious competitive advantages built into the machine, I believe the DittoPro will have a big impact on forward revenue and earnings growth at Tinkerine. Currently, Tinkerine derives its revenue from sales of its hardware, 3D Printers, filament, and print services, a market it sees tremendous potential in. The company also expects to see revenue from Tinkerine U, its education initiative, comprised of online course content – instructional and training videos, and a repository, which will consist of downloadable 3 dimensional files or designs. 2014 is the beginning of the company’s three-year plan, to push deep into the education vertical. Tinkerine will aggressively enter the North American market by putting printers, and online course curriculum into North American schools. Tinkerine says its education offering will target more than 8M teachers, 120,000 K-12 schools (60M students), and 4700+ post secondary institutions (21M students).

3D printer stocks

Recent Developments  

The company recently announced that it is now selling its own line of high purity biodegradable filament, which it believes will be a growing source of revenue going forward.

3D printing stocks

Management Strength

Having a great new product in a high-growth sector doesn’t guarantee success for the company, or for investors. Success also requires having a management team with industry experience to successfully implement the company’s business plan.

Big Four accounting firm Ernst & Young conducted a survey of institutional investors covering the most important non-financial factors for IPO success. Although Tinkerine Studios became public via reverse takeover, the survey results are relevant and applicable, in that a major key to success is management’s credibility and experience in the eyes of institutional and individual investors.

Tinkerine Studios institutional investors survey

 

Management strength is another area where Tinkerine Studios excels. Their executive team has management-level experience at MakerBot, Shapeways, and Hewlett Packard, and the quality of their advisory board speaks volumes about where this company is headed.

In less than 3 years, Tinkerine CEO Eugene Suyu has taken his concept to create a user-friendly and affordable 3D printing experience for consumers to an established leader in the Canadian 3D printer market that’s publicly trading, winning industry awards, and launching a new key product. This is clear confirmation of Eugene Suyu’s effectiveness, efficiency, and capability in leading the company forward.

I had the pleasure of meeting Todd Blatt, mechanical engineer and VP of Market Direction for Tinkerine Studios at the Inside 3D Printing Conference and Expo in New York in March where he presented at the maker summit. Todd is a true pioneer in the consumer 3D printing market. He began 3D modeling in the mid 1990’s and was an integral part of the MakerBot marketing team.

Current member of Canadian Parliament, Russel Hiebert, with his experience in legislative, funding, and regulatory changes is on the Tinkerine Studios advisory board and is unquestionably, a huge asset. Russel Hiebert also serves on Canada’s International Trade Committee, and should be able to open up doors internationally with his strong political connections and global relationships.

 

First Mover Advantage in North American Schools

Tinkerine Studios is spearheading a big education push into  the North American school system, starting with Canadian Schools, reminiscent of what Apple did so successfully in their early days. This strategy can generate large-scale revenue flow into Tinkerine while at the same time developing brand awareness and loyalty in students who are at the age when brand loyalty begins.

Tinkerine’s 3D printers are already present in several school districts in both Canada and the US, and the education move is just getting started.

I spoke with Tinkerine CEO, Eugene Suyu recently about their education push…that one of the keys to Tinkerine’s success in the North American school market appears to be their development of software designed specifically for the education sector.  I asked if the proprietary software of “Tinkerine U” includes modules covering technical aspects of the printers themselves, modules geared for teachers on the practical uses of 3D printing for teaching math and science classes, and of course student/user modules.

Eugene Suyu explained:

“Yes, that’s right. We know there are a lot of 3D printers in North American schools already collecting dust for lack of a teacher-friendly curriculum to bring them alive in the classroom. To fix this problem, we partnered with the former head of one of Canada’s largest online schools, Kevin Brandt, and a leading ED Tech content provider Ready Labs, co-founded by a major Canadian University, Simon Fraser University, to develop ‘Tinkerine U’, which is the first-ever Massive Online Open Course (MOOC-style) coursework designed to teach teachers how to use 3D printing effectively in STEAM courses and beyond. Tinkerine U focuses on the full STEM/STEAM (Science, Technology, Engineering, Arts, & Mathematics) curriculum with teacher training guides, online courses and lesson plans, workshops, support for library maker spaces, and access to Tinkerine’s award-winning 3D printers. Your readers can visit us at www.TinkerineU.com and register to get involved in this exciting movement in global education.”

3d printer stocks

Planning Global Education Push

Eugene Suyu explained the company is looking far beyond North American educational systems.

“We have experience and intimate knowledge of selling 3D printers into the US market and a number of US school districts. Each school district has the equivalent of IT directors that are tasked with selecting which printers the district or schools should be buying. We know that performance, service (reliability), curriculum support, and affordability is what they are looking for, and that a teacher or  librarian doesn’t want to have to wait 6 weeks for the maintenance of a machine. We believe Tinkerine U and the launch of DittoPro gives us a significant advantage, and in order to execute successfully in the areas of sales,  distribution, and customer service, we will need to continually add experienced individuals to support our efforts. Yesterday, we announced the addition of RJ Wafer to our advisory board, the former Director of Distribution for MakerBot Industries, and Ben Yan, who was a senior Channel Manager with Hewlett Packard. We believe this significantly strengthens our distribution and sales efforts in North America and internationally, as both gentlemen bring a great deal of experience in the areas of corporate sales, distribution, channel management, and business development. RJ oversaw and handled the build-out of the team, strategy, and channels that created huge growth for MakerBot, while Ben has 35 years of extensive management with Fortune 50 companies including Hewlett-Packard, Sun Microsystems, Abbott Laboratory, and GT Group Telecom.

We know this is a massive market for us, and one that we will be aggressively pursuing, along with distribution deals in other strategic markets including Korea, Japan, and Taiwan.” 

Tinkerine studios cash position

Cash Position

Tinkerine’s advantages of having successful products in a high-growth sector, a strong management team, and first mover advantage in education are maximized by a healthy balance sheet and cash position. As a result of the successful capital raise during the process of going public, Tinkerine Studios now has a cash position approximately $2.4 million Canadian dollars.

I also spoke with CFO Martin Burian who told me the company has sufficient cash to execute their business plan over the next 18 months. Additionally, he explained:

“These figures assume no increase in sales (which we will definitely achieve in the coming months as we announced the launch of our DittoPro in May and deliveries will start later in June). So as we enjoy the fruits of our base line business expansion we will have positive contribution from incremental sales. That means our cash will last longer or we will accelerate our business roll out and incorporate new initiatives.”

Tinkerine’s public launch provides the means for the company to immediately tap into the rapidly accelerating growth in the consumer and prosumer 3D printing sector on a substantial scale.

Tinkerine conclusion

Conclusion

Tinkerine Studios represents what I believe to be one of the best investments in 3D printing at this time. Through its education initiative, Tinkerine is a serious player in one of the strongest investment themes today, Education Technology (ED Tech). This high-growth market is heating up with M&A activity, and total market size for smart classrooms and ED Tech is estimated to grow from $31.31 billion in 2013 to $59.90 billion by the 2018 according to a new report from MarketsandMarkets.

Goldman Sachs is also bullish on Education Technology. In a recent Bloomberg interview, Goldman Sachs Co-chairman George Lee sees “smart capital” going into ED Tech companies, and believes market opportunity is in  ED Tech could be larger than the markets Google and Facebook operate in (see video).

The extraordinary growth opportunity in the education sector that Tinkerine Studios is aggressively pursuing is palpable. With first mover advantage, the launch of the DittoPro and a unique software curriculum for schools, I believe the company has what it takes to become a leading hardware, software, and PLA filament consumables provider for Canada’s public schools.

In addition, Tinkerine Studios is now working on laser based additive manufacturing which it believes will be the next phase of 3D Printing.

With a mere $18 million USD market cap, I believe the potential risk in shares of Tinkerine Studios is minimized while the potential for substantial share price gains over the next 6-12 months is very high.

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Disclosure:  I am long shares of Tinkerine Studios (TTD:V) that I purchased in the open market.

Payment for this article of $30,000 CAD and 150,000 .25/share options from Tinkerine Studios

Disclaimer:  See sidebar

Gary Anderson…..Follow me on Twitter: @3DPrintingStock

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3D Printing and Technology FundThe “3D Printing and Technology Fund” was the best performing technology fund for the last month as ranked by Morningstar.

As subscribers to 3DPrintingStocks.com know, Morningstar is a respected, reliable source of independent investment analysis that is widely followed by all levels of fund and stock investors.

What many investors may not yet know is that the new 3D Printing and Technology Fund (TDPNX) for individual investor class and (TDPIX) for institutional class, was the number one performing technology fund for the last 30 days according to Morningstar.

The link to the technology funds tracked by Morningstar is here, and if you sort by 1 month % return, you’ll get the following screen (click image to enlarge).

3D Printing and Technology Fund capture

 

I wrote about the 3D Printing and Technology Fund in an earlier article, and my conclusion from that article is unchanged:

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.

You can learn more about the 3D Printing and Technology Fund and invest in the fund directly at 3DPFund.com.

 

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Gary Anderson…..Follow me on Twitter: @3DPrintingStock

 

Disclosure: I am an investor in the 3D Printing and Technology Fund (TDPNX).  I was not paid by the fund 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. See sidebar for full disclaimer.

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I’m really looking forward to meeting some of my subscribers from Australia and making new friends at theInside 3D Printing Conference and Expoin Melbourne next week!

 

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.

 

Materialise IPOThis morning the Materialise IPO (MTLS) was priced at $12.00/share and trading will begin today.

Per the  updated prospectus filed June 12, the company will have 47,072,056 ordinary shares at the start of trading. 

CEO Wilfried Vancraen, Chief Executive Officer of Materialise, will ring the opening bell for the NASDAQ this morning.

 

Investors should not expect a repeat of last year’s voxeljet IPO, which jumped over 120% in the first day of trading during a period when 3D printing stocks had gotten well ahead of their supporting fundamentals in their valuations.

And while I’m a 3D printing industry and 3D printing stock bull, this is a company I have decided to sit out on when trading begins.

Revenue growth from 2012-2013 was an unimpressive 18% and 2013 net income was a mere $4.7 million (or .10/share when fully diluted) for a trailing PE of 120.

Q1 2014  bottom line was break even.

 

2013 full year and Q1 2014 financials: click to enlarge

Materialise IPO financials

 

I could be wrong, and initial trading could be very positive for MTLS shares.

Given the fact that it is one of only three pure play 3D printing stocks that have positive EPS for the trailing twelve month period (the other two being 3D Systems (DDD), and Arcam AB (AMAVF), shares could rally to close above $20/share on day one…  but… I doubt it.

 

 

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Gary Anderson…..Follow me on Twitter: @3DPrintingStock

 

Disclosure: No position.

 

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. See sidebar for full disclaimer.

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Our parents and our grandparents created the world’s largest economy and strongest middle class not by buying stuff, but by building stuff — by making stuff, by tinkering and inventing and building; by making and selling things first in a growing national market and then in an international market — stuff “Made in America.”

— President Barack Obama at the first-ever White House Maker Faire, June 18, 2014


 

Sam Frost,  a subscriber to 3DPrintingStocks.com, has put together a great (and free) “Beginner’s 3D Printing Guide” that I wanted to share.

At just over 14,000 words (with accompanying illustrations and videos), the Beginner’s 3D Printing Guide is comprehensive enough to cover all the fundamentals of 3D printing and everything is explained in understandable language.

Readers don’t need to opt-in, buy anything, or wade through intrusive advertising to read the guide and get making.

Take it from me, if you’ve just been investing/trading in 3D printing stocks, you’re missing out on a lot of fun with consumer level 3D printers, and this guide will help get you started.

 

Gary Anderson

 


 

Beginner's 3D Printing Guide

Beginner’s 3D Printing Guide

From 3DPrintingStocks.com subscriber, Sam Frost

3D printing is a new technology in the public’s eye, but it has already established itself has having the potential to cause drastic change.

The rise of additive manufacturing has been touted as having the potential to resurrect highly paying, skilled manufacturing jobs, help defend the environment, and decentralise the means of production.

Despite the growth of 3D printing as an industry, and as a viable means of production, it still confuses many people. Ask the “average Joe” on the street how 3D printing works, and you’ll almost always get a confused response.

And the crazy thing is that many people who are keen to start 3D printing themselves also find it difficult to know where to begin. There is a wealth of fantastic information and advice about 3D printing on the Internet … the only problem being that much of it is heavy on jargon and tech-talk, which can make it hard to get started.

To help make this exciting new technology more understandable and accessible (even to a total newbie) myself and the rest of the team at 3D Printer Plans have put together a comprehensive Beginner’s 3D Printing Guide.

Here’s a small sample of what you’ll learn in the guide:

* The history of 3D printing

* Exactly what 3D printing is

* Crucial uses of the technology

* How 3D printers work

* Different printer types and print processes

* Software you need before you can start printing (including free/low-cost options)

* No-nonsense guide to choosing your first 3D printer

* Maintenance lessons

* Other accessories and hardware you may need

Emphasis has also been placed on making the guide as easy to understand, and as jargon-free as possible.

 

Go here to read the free Beginner’s 3D Printing Guide - and do let us know your thoughts and suggested improvements.

 

Sam Frost

 

 

 

3D SystemsShares of 3D Systems closed at the high of the day today, up 7.29% on the second largest volume day for the last month.

Additionally, DDD shares broke a much-watched resistance level of $56.95 today and appear strong technically.

 

“Clay Trader”, the best technical analyst I know, made the following video on DDD trading today that longs (and shorts) alike will probably find interesting.

 

 

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Gary Anderson…..Follow me on Twitter: @3DPrintingStock

 

Disclosure: I am long shares of 3D Systems (DDD).

 

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. See sidebar for full disclaimer.

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Russell IndexesIt’s that (exciting) time of year again for the annual reconstitution of the Russell Indexes, utilized extensively by institutional investors, asset managers and investment advisors worldwide. According to their web site,  9 out of the 10 most used U.S. institutional portfolio benchmarks are from Russell’s U.S. Equity Index series, with $5.2 trillion in assets benchmarked to Russell Indexes.

Being added one of the Russell Indexes can dramatically increase liquidity and investor interest, particularly in less known and thinly traded stocks.

As of June 20, the list of additions to the Russell Indexes includes:

Russell Indexes

Russell Indexes

Groupe GorgeRussell indexes

 

 

 

 

Official reconstitution takes place after the close of trading on June 27.  Assuming additions are unchanged from the June 20th list, Arcam AB (AMAVF) and Groupe Gorge (GOE:FP) will be added to the Russell Global Index, while Organovo Holdings (ONVO) will be added to the Russell Microcap Index.

Link to Russell Global, Russell 3000, and Russell Microcap index additions.

The big winner in this year’s reconstitution looks to be ARC Group Worldwide, (ARCW), which will be added to the Russell Global, the Russell 3000, and the Russell Microcap indexes.  Of the Russell additions, ARCW is the most recent to enter the 3D printing space via their 3D Material Technologies division. I visited the company a few weeks ago and wrote about it in “A Visit to 3D Materials Technologies.”

 

It’s only natural to see more 3D printing related stocks entering the Russell Indexes. With an industry CAGR of 30-35%, public and private companies in the space are playing an ever-increasing role in global economies.

 

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Gary Anderson…..Follow me on Twitter: @3DPrintingStock

 

Disclosure: I am long Arcam AB, ARC Group Worldwide, and Groupe Gorge. I was not paid by any 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. See sidebar for full disclaimer.

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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.

 

New 3D Printing and Technology Fund for individual investors (TDPNX) provides diversification and performance coming out of the gate.

 

3D printing stocks are notoriously volatile and unpredictable over short-term periods. While this roller coaster volatility is great for day traders and experienced options players, investors in the space looking for gains from the strong 34.9% (Wohlers estimate) CAGR of the industry with less exposure to volatility may want to look into the new individual investor class of the 3D Printing and Technology Fund, ticker (TDPNX).

3D Printing and Technology Fund

The 3D Printing and Technology Fund was initially limited to institutional investors with a $100,000 minimum investment, but a new individual investor class fund with a modest initial investment of $2,500 launched on April 9th of this year.

Individual investors can transfer or initiate an IRA account, create a regular account, and participate in automatic monthly investments (optional, starting at $100/month) to leverage the benefits of dollar cost averaging.

 

 

Fund Performance

I will disclose that I am an investor in the 3D Printing and Technology Fund myself.  As the chart below shows, shares in TDPNX have outperformed individual stocks 3D Systems (DDD), Stratasys (SSYS), ExOne (XONE), and voxeljet (VJET) since its recent inception.

3D Printing and Technology Fund

 

Fund Holdings

3D Printing and Technology Fund Top Ten Holdings Representing 68.03% of Equity Holdings
SSYS Stratasys Ltd.
DDD 3D Systems, Ltd.
ONVO Organovo Holdings
XONE The ExOne Co.
AMAVF Arcam AB
DASTY Dassault Systems, ADR
VJET Voxeljet AV
ADSK Autodesk, Inc.
GE General Electric Co.
PRLB Proto Labs, Inc.

 

Fund Managers

I believe the strong performance of the 3D printing and Technology Fund since inception compared to returns from individual leading stocks in the space is due to the knowledge and industry experience of fund managers Alan Meckler and son, John Meckler.

Alan Meckler is the CEO of Mediabistro (MBIS), the company behind the largest 3D printing industry B2B trade shows worldwide, the”Inside 3D Printing Conference and Expo” events. While Mediabistro is not associated with the 3D Printing and Technology fund itself, Alan Meckler’s contacts and cognizance of industry trends via this conference series are far-reaching.

Alan Meckler was interviewed recently by Bloomberg TV which you can watch here.

On a personal note, I’ve had the pleasure of meeting with Alan and John Meckler on several occasions and have the utmost confidence in their ability to manage the fund for superior performance. While the standard “past performance is no guarantee of future results” disclaimer has become cliché, I believe it remains the most salient piece of data on an investment in a mutual fund. And while TDPNX has a short history, I believe the comparative stability and superior performance of the fund is likely to continue due to the fund’s management.

 

The Bottom Line

Like many active traders in the 3D printing stocks I genuinely love the short-term volatility of the space, particularly when it comes to options trading. But I also have a long term investment view regarding the industry and have diversified my portfolio to include shares of the 3D Printing and Technology Fund.

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.

 

For more information visit:  3DPFund.com

 

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Gary Anderson…..Follow me on Twitter: @3DPrintingStock

 

Disclosure: I am an investor in the 3D Printing and Technology Fund (TDPNX).  I was not paid by the fund 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. See sidebar for full disclaimer.

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Coming soon:  My report on Tinkerine Studios (TKSTF).

 

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.

Materialise IPO to deliver (very) big market cap.

Materialise IPOAs outlined in their updated prospectus filed June 12, Belgium-based 3D printing service and software provider, Materialise (MTLS), will have 47,072,056 ordinary shares when the IPO begins trading.

The price range of the offering is estimated to be $12-$14/share, and fully diluted the market capitalization of Materialise will reach $624 million at the midpoint.

The Materialise IPO is the first in the U.S. as a pure play 3D printing service and software provider, and I believe the estimated post-IPO market cap of $624 million creates an interesting (and compelling) argument for another company now adding 3D printing services to their large and profitable metal injection molding business.

That company is ARC Group Worldwide (ARCW) which I visited two weeks ago and reported on here.

 

Some comparisons between the Materialise IPO and ARC Group Worldwide

Company

Materialise (MTLS)*

ARC Group Worldwide (ARCW)

Trailing Twelve Month Revenue

$ 95 million

$79 million

Quarter Ending 3/31/14 Income

$ 113,000 (see page 15)

$1.6 million (see page 3)

Quarter Ending 3/31/14 EPS

0

.11

Trailing Twelve Month EPS

           .10/share *

.41

Trailing Twelve Month PE

130*

37

Market Capitalization

$624 million*

$227 million

* EPS, PE, and market cap based $4.7 million in net income reported for 2013 *(page 15), 47 million shares outstanding post IPO, and midpoint of price range, or $13/share.

Interesting to note that not only did ARC Group report EPS of .11/share vs. no earnings at Materialise for the period ending March 31, 2014, ARCW had more earnings/share for quarter than Materialise had for all of 2013.

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While there are no pure play U.S. listed 3D printing service bureaus trading, ARCW has recently emerged as having “one of the largest capabilities in metal 3D printing today” according to the CEO Jason Young in an April shareholder update.

While neither Materialise or ARC Group are pure play 3d printing service providers, I like the numbers ARC Group has reported as they expand their operations to include additive manufacturing and increased engineering design services (see article).

Given the YTD chart of ARCW vs. DDD, SSYS, XONE, and VJET, it appears I’m not alone in my appreciation of ARCW’s fundamentals and move into 3D printing services.

Materialise IPO

 

Average analyst estimates for the current FY 2014 which ends June are .50/share, increasing to .58/share next fiscal year.

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Gary Anderson…..Follow me on Twitter: @3DPrintingStock

 

Disclosure: I am long shares of ARCW and was not paid by ARC Group or any third-party for this article.

Disclaimer:  See sidebar

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Coming soon:  Report on my visit with Tinkerine Studios (TKSTF) management.

 

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.

 

Tinkerine Studios logoTinkerine Studios, a manufacturer of consumer and prosumer grade award-winning 3D printers, has begun trading in the U.S. under ticker (TKSTF). The company is based in Canada and has been making inroads into the Canadian and U.S. public education systems.

Tinkerine Studios (see web site) has an established sales history and a strong, experienced management team which includes former members of MakerBot and Shapeways management. The company also has a key product launch of their latest 3D printer, the “DittoPro” now underway.

I’ll be meeting with members of management next week and look forward to providing subscribers with more information on this interesting and very promising company soon.

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Disclosure:  I am long shares of Tinkerine Studios Ltd.

Disclaimer:  See sidebar

Gary Anderson…..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.