3D printing stocks have rallied in August with newcomer Graphene 3D Lab outperforming…a trend I believe will continue over the next few months for reasons I’ll discuss below.
3D printing stocks have performed well during the first 3 weeks of August. The 3D Printing Stock Index (a tracking index) measures daily changes in the weighted, combined market capitalizations of 3D Systems (DDD), Stratasys (SSYS), ExOne (XONE), Arcam AB (AMAVF), voxeljet (VJET), and Organovo (ONVO). The index rose 12.9% from August 1st – August 22.
The 3D Printing And Technology Fund (TDPNX) has also been strong in August and the trend could continue. This is due to a large short position in several 3D printing stocks combined with positive forward guidance from 3D Systems and Stratasys for the remainder of this year and into next.
New player Graphene 3D Lab
The newest addition to 3D printing stocks is Graphene 3D Lab Inc. (web site) a company on the verge of commercializing graphene filaments for 3D printing.
Chart updated 8/27/14: Shares in Graphene 3D Lab began trading in Canada on August 11th under ticker GGG.V and a listing in the U.S. is expected in the next 60-90 days. The chart below shows the performance of GGG.V vs. DDD, SSYS, XONE, and VJET from the close of the first day of trading – Wednesday’s close on 8/27/14. Note that gains do not include those made on opening day, when subscribers were first alerted to the stock at market open.
Shares in Graphene 3D Lab have outperformed the broader August 3D printing stock rally since trading began. While past performance does not necessarily predict future results, I believe shares in Graphene 3D Lab will continue to outperform for the following reasons:
- Graphene 3D Lab appears to be in the lead to commercialize materials for 3D printing
In this June interview, COO Dr. Elena Polyakova stated they “expect to start selling materials for 3D printing within three to six months.”
- Graphene filaments and materials are likely to be in strong demand
When you combine the incredible properties of graphene with the advantages inherent in 3D printing, demand for new graphene-enhanced materials should be strong. Some have predicted a new “killer app” will come out of 3D printing that will result in widespread consumer adoption. I believe that “killer app” just might be built out of a new “killer material” for 3D printing…a graphene composite.
I asked Christopher Barnatt, a British futurist, scholar and author of “3D Printing: The Next Industrial Revolution” for his thoughts on graphene as a new material for 3D printing. Chris replied:
“I am certain that, in the next few years, 3D printing will be driven forward as much by new material developments, as it will by improvements in hardware and new 3D printing processes. The creation of a plastic/graphene composite filament by Graphene 3D Lab is one example of cutting-edge work in this area. When it comes to making a really strong 3D printing materials, plastic/graphene composites may lead the pack. In addition to being strong, plastic/graphene composites will also be conductive, so opening up possibilities to create circuitry or sensors on 3D printed products at home.”
Incidentally, Chris is working on a new book about 3D printing for publication that should also be available on Amazon.com in November.
- More online brokers will offer trading in Graphene 3D Lab by late September
Shares of GGG.V are available now to U.S-based investors with foreign market trading accounts at Fidelity, Interactive Brokers, and a few others. Some brokers however, (including Schwab’s international desk), won’t have share available until after the first 40 days of trading. As more online brokers have shares available, I expect interest and volume to increase.
- U.S. listing
Graphene 3D Lab should be listed in the U.S. (where it’s also headquartered) in the next 60-90 days. This of course opens up a very large pool of investors in both 3D printing and graphene who like myself, see the company having first mover advantage in sales of graphene materials for 3D printing.
- “Quiet period” ends in early September
Similar to an IPO in the U.S. which must have a quiet period of 40 days following the start of trading, Graphene 3D Lab is unable to release materially significant news yet. This period ends in early September and I suspect at that point many investors will begin discovering the company when significant news can be released.
As a result of new investor awareness from press releases following the quiet period, an increase in the number of brokers having shares available, and a listing for trading in the U.S., a corresponding increase in demand for shares seems certain.
With 37.9 million shares outstanding and 21 million of those locked in escrow, the float is among the lowest in 3D printing stocks. When Graphene 3D Lab announces initial sales and/or distribution agreements for graphene-enhanced filaments “within 3-6 months”, demand for shares will almost certainly cause a major move up in the stock.
Read more about the properties of graphene and why I believe Graphene 3D Lab will be first to market in:
The Best 3D Printing Stock to Buy Now is Graphene 3D Lab
Gary Anderson…..Follow me on Twitter: @3DPrintingStock
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Disclosure: I am long shares of Graphene 3D Lab. Due to the strengths I found in management and the technology of Graphene 3D Lab, I approached the company and key investors while the company was private, offering my services as a consultant. I have since signed a contract for those services with Numus Financial of Canada which began August 14, 2014 and runs through December 2015. Cash value is $110,000 USD with options for 100,000 shares at a price to be determined by the Toronto Stock Exchange on or before September 1, 2014. I do not have a contract directly with Graphene 3D Lab and comments have not been directly endorsed by Graphene 3D Lab management.
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