I’d like to try something new here at 3DPrintingStocks.com, and that is to present what I believe are excellent short-term trading opportunities on occasion with stocks that are connected to 3D printing industry…either as pure plays or otherwise.
The first stock I’ll do this with is Camtek (CAMT) which reported a respectable Q3 on October 29. For the bottom line, Q3 quarter resulted in GAAP earnings per share of $0.02 compared to $0.00 per share in the third quarter of 2013. GAAP EPS has for the ttm period has increased to .13/share.
Analysts are expecting big growth from Camtek in 2015 with the commercialization of Gryphon. The average EPS estimate is increased to .33/share in 2015, giving Camtek a forward PE of 9 at the current share price.
Camtek has opened a testing center in the heart of Silicon Valley for their new Gryphon 3D inkjet printer- which applies solder mask onto PCBs (printed circuit boards). I believe this is truly revolutionary technology that could have broad appeal in the PCB market, a $59 billion/year industry in the U.S. alone according to the IPC World PCB Production Report for the Year 2013.
Camtek’s Chairman and CEO, Rafi Amit, commented:
“Strategically the third quarter was very important for us and sets the stage for 2015. We opened a demonstration center for the Gryphon, our 3D Functional InkJet Technology system for PCB solder mask applications, at which potential customers can see the system in action. This will support our efforts to capitalize on the industry interest we are seeing in this product. We remain on track and expect initial commercial Gryphon installations to begin in the fourth quarter, with revenues expected in 2015.
Additionally, our semiconductor systems achieved qualification at leading semiconductor manufacturers, some of which we had not significantly penetrated in the past. These are large vendors that are getting ready to ramp up with their new manufacturing facilities and their capabilities. As the demand for their products picks up we expect to see the potential for getting multiple orders and selling significant quantities of tools.”
“For the fourth quarter, we expect revenues of around $20.5-$22.5 million. Looking further out to 2015, we believe the tailwinds are in place for solid year-over-year growth in both revenue and profit.”
However, the stock has lost some 30% since the Q3 report, making what I believe to be an excellent buying opportunity.
The company has strong balance sheet , allowing commercialization of the Gryphon 3D inkjet printer to proceed rapidly.
|Total Cash (mrq):||24.22M|
|Total Cash Per Share (mrq):||0.79|
|Total Debt (mrq):||0.00|
|Total Debt/Equity (mrq):||N/A|
|Current Ratio (mrq):||3.12|
|Book Value Per Share (mrq):||2.15|
Trading recommendation: Buy CAMT at or near $3.00/share for a potential short-term rebound of 20%. Set stop-loss order at 5% below your entry price to preserve capital should weakness continue.
See also: November 2014 investor presentation.
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Disclosure: I am long shares of CAMT.
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.