Tinkerine StudiosMeet management of Tinkerine Studios (web site), including their newest member, Ben Yan, who was in charge of sales at Hewlett-Packard prior to joining Tinkerine.

 

 


 

As an investor in the company, I wanted to meet management and check out the “brick and mortar” setup at Tinkerine Studios, (stock tickers CAD: TTD and USA: TKSF), a manufacturer of consumer and prosumer grade 3D printers. Tinkerine is located in the heart of Vancouver, B.C., or “Silicon Valley North”, due to the number of high-tech enterprises moving into the area.

The company is launching the DittoPro printer, a beautiful machine which combines ease of use with great specifications.

Tinkerine Studios is also launching TinkerineU, “a complete ecosystem for students, teachers and parents” that address STEAM education initiatives in North American school districts.

Interviewees are:

  • Eugene Suyu, Co-founder and CEO
  • Kevin Brandt, Director of Tinkerine U, (web site) Tinkerine’s education initiative
  • Ben Yan, Channel Manager

space

video interview with management of Tinkerine Studios

I came away from my visit with Tinkerine management feeling very confident about their business model, the DittoPro printers, the TinkerineU initiative, and my personal investment in the company. I had the pleasure of spending an hour or so talking with Ben Yan, who was previously in charge of sales at Hewlett-Packard. He’s also the author of Reinvent Sales Processwhich received very positive reviews from executives at HP, Citizen Bank, Alcatel-Lucent and others. Ben plans to bring what he calls “the HP way” to Tinkerine Studios, and I believe his recent addition to management will an important driver for the company’s success.

 


 

I would like to thank Brian Federal who was behind the camera and did the editing for the video.  Brian is filming “3D Printing Revolution”, a documentary film about the 3D printing industry.  His web site is at 3DPrintingRevolution.com.

 

See also: 3D Printer Manufacturer Tinkerine Studios: High Return Potential With Mitigated Risk on Engineering.com

 

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Disclosure: I am long shares of Tinkerine Studios. I was not paid by Tinkerine or any third-party for this content.

 

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.

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

 ______________________________________________________

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I don’t use the title “The Best 3D Printing Stock to Buy Now” often.

It’s a title I take seriously and have only used once before with Groupe Gorge (GOE.PA) on December 9th of last year. The stock rose from 11 euros that day to a high of 26.75 euros within 6 weeks and continued to strongly outperform shares of DDD, SSYS, XONE, and VJET over the next 6 months as this chart shows.

he best 3D printing stock to buy now is graphene 3D lab

Groupe Gorge shares are still up 35% since my article while DDD, SSYS, XONE, and VJET are down sharply from that date.

“The Best 3D Printing Stock to Buy Now” is only a stock that my due diligence leads me to believe with strong conviction that it will outperform well-known 3D printing stocks and the overall market over the following 3-6 month period, just as Groupe Gorge did. Those stocks don’t come along often and when they do, I believe they’re not only the best 3D printing stock to buy now, they’re the perfect stock to buy now, period.


I believe Graphene 3D Lab Inc. (GGG.V) is The Best 3D Printing Stock to Buy Now and this article explains why.


 The Best 3D Printing Stock to Buy Now

The Best 3D Printing Stock Graphene 3D Lab logoGraphene 3D Lab Inc. (web site) began trading today under ticker (GGG.V) on the Toronto Venture Exchange and a U.S. listing is pending. Based in Calverton, N.Y. Graphene 3D Lab is the only publicly trading company in North America engaged exclusively in the research and development of graphene-enhanced materials for 3D printing.

There are 37.9 million shares outstanding with management and key investors in the public launch owning the majority. Approximately 21 million shares are locked up in escrow- share structure and trading float is tight.


 

Graphene’s properties

First isolated in 2004, graphene is composed of a single layer of carbon atoms bonded together in a repeating pattern of hexagons. Graphene is both the thinnest and the strongest material known to exist. It’s one million times thinner than a sheet of paper and considered two-dimensional.The best 3D printing stock graphene diagram

Graphene

  • is the strongest material known to exist (200X stronger than steel, yet 6X lighter)
  • is the thinnest material known to exist
  • conducts electricity 30 times faster than silicon
  • is transparent
  • is bendable

CNN dubbed graphene a “miracle material” in this article and accompanying video.


The Best 3D Printing Stock to Buy Now

Market potential for graphene-enhanced 3D printing materials

best 3d printing stock graphene electronics

When you take the combined properties of graphene, the market potential is obvious…and it’s huge. Consider the future of conductive inks, nano-batteries, touchscreens, flexible and transparent computer screens, wearable electronics, major improvements in current liquid crystal displays and organic light emitting diodes, etc. This is our future and it’s a future that graphene is expected to play a major role in. Engineers also predict graphene will be used to create a composite material to replace much of the steel used in the aerospace and defense industries, providing much greater strength while reducing weight/improving fuel efficiency. The same holds true for the automotive industry and the list goes on and on.

Now, imagine the additional market applications, industrial and consumer, when you marry graphene to 3D printing. Imagine harnessing the properties of graphene to make materials for 3D printers where complexity and variety are free. Imagine compact, portable manufacturing with no lead time and the ability to precisely replicate objects…but make them stronger, lighter, electrically conductive…and you begin to see what the future holds when graphene meets 3D printing. You’ll also see the potential of Graphene 3D Lab as the one and only public company in North America focused exclusively on bringing graphene-enhanced 3D printing materials to market.

Some within the 3D printing industry are predicting an as-yet unrealized “killer application” in the next 2-3 years that will create a surge in consumer 3D printer demand.  Maybe it’s not a “killer app” that emerges to make everyone want to buy a 3D printer. Maybe it’s a killer material…like graphene filaments compatible with existing printers, which is exactly what Graphene 3D Lab is launching.


The Best 3D Printing Stock to Buy Now

Graphene 3D Lab- first to commercialize graphene filaments

Best 3D Printing Stock - Graphene 3D Lab timelineI believe Graphene 3D Lab will be the first to commercialize graphene filaments on a large scale. According to their investor presentation, revenue from their proprietary graphene filaments which are compatible with existing FDM consumer printers is expected to begin “within 12 months.” I know of no other company public or private this close to market-ready graphene filaments that has both the technology in hand today and the capacity for large-scale production. In fact the time frame for commercialization could be much sooner, “within 3-6 months” according to an article I have linked below.

Earlier this year I interviewed Rob Gorham, Deputy Director of America Makes (the nation’s leading collaborative partner in AM and 3DP technology research) and asked: “What new materials for 3D printing look promising right now? Is there any research being conducted on graphene as a potential material at America Makes?” The answer was: “We are not explicitly funding any graphene projects, but wouldn’t be surprised to do so in the near future.”

Stratasys is involved in graphene research, but it appears to be just now beginning and nowhere near commercialization.

“Research” is being done elsewhere, and I’ve found several obscure private companies globally that claim to be making progress on true graphene filaments for 3D printing (while at the same time looking for money and development partners). Meanwhile, Graphene 3D Lab has patent-pending graphene filaments for existing printers on the verge of commercialization with a longer term goal to develop a line of 3D printers that are optimized for multimaterial printing.


The Best 3D Printing Stock to Buy Now

 Why Graphene 3D Lab will be 1st to market

As an investor it’s important to know how and why an unknown company can come out of the blue and commercialize such a transformative product before larger industry players do. In the case of Graphene 3D Lab it can be summed up in one word: management.

CEO, Dr. Daniel Stolyarov, holds a PhD in Physical Chemistry from the University of Southern California with expertise in nanomaterials and the formulation of nanocomposites and co-authored papers with Nobel and Kavli prize winners, as well as members of the National Academy of Sciences.

COO, Dr. Elena Polyakova, is a regular speaker at graphene and nanotech conferences (most recently at Nanotech 2014) and is well-known in the industry and academia as an expert in two-dimensional materials.

best 3d printing stock graphene 3D labs speaking engagements

After graduating from the University of Southern California with a PhD in Physical Chemistry she worked as a Postdoctoral Fellow at Columbia University.

Following graphene’s identification and isolation in 2004, Drs. Stolyarov and Polyakova were early movers into the space. In 2009 they launched Graphene Laboratories, a commercially successful supplier of high quality graphene with over 7,000 global customers today.

Many articles and graphene industry publications confirm the success of Graphene Laboratories as a major supplier of graphene. Perhaps more importantly, they also shed light on the entrepreneurial spirit of Drs. Stolyarov and Polyakova and their drive to be at the forefront of the early commercialization of graphene.

Brookhaven Lab and Graphene Laboratories collaborate to bring atom-thin material to the masses (U.S. Department of Energy, Brookhaven National Laboratory)

Bringing Graphene to the Masses: An Interview with Dr. Elena Polyakova (AZoNano.com)

Interview with Dr. Elena Polyakova, CEO of Graphene Laboratories (GrapheneTracker.com)

Making the ‘wonder material’ (Institute of Physics)

Toward Commercialization of Graphene Materials (Presentation by Dr. Elena Polyakova)

the best 3d printing stock to buy now is graphene 3D Lab

Dr. Polyakova summed up a recent interview regarding the launch of Graphene 3D Lab stating:

Right now we have a competitive advantage because we’re able to synthesize extremely good materials, and I know that large companies were trying to do similar projects but they haven’t released anything yet, so I’m not sure if they’ve succeeded in terms of their R&D. Of course, our technology is patented and well protected and also it’s relatively difficult to reverse engineer our materials and requires very specific expertise in certain areas. So, we’re well protected and other companies won’t be able to move forward in terms of what we’re doing with graphene. But there’s always a risk that they might discover another material that is comparable to graphene in terms of their properties, so we have to move fast.”

……………………………………………………………………………………………………….

Personally, I like  the “we’re well protected and other companies won’t be able to move forward in terms of what we’re doing with graphene” statement…a lot.

From that same interview in June, investors should note Dr. Polyakova’s comment that sales of graphene-enhanced filaments are expected to beginwithin three to six months”a nice narrowing of the window from the “within 12 months” timetable in the investor presentation which I first saw in May.


The Best 3D Printing Stock to Buy Now

The Bottom Line

Graphene 3D Lab is a company investors in both 3D printing and graphene will find compelling.

In my opinion, this is the best 3D printing stock to buy now due to:

  • tight share structure with one of the smallest floats in 3D printing
  • management with established expertise in graphene, driven to be 1st movers to bring graphene materials to 3D printing
  • filaments offer some of the highest gross margins in 3D printing with 3D Systems and Stratasys buying up filament manufacturers as a result
  • sales of graphene filaments by Graphene 3D Lab could begin within 3-6 months, while graphene filaments remain in R&D stage by large players
  • cash available from public launch to ramp production of graphene filaments, continue work on mulit-material 3D printer
  • 1st mover advantages in such unique materials likely to result in distribution agreements and rapid opening of sales channels
  • potential for buyout due to 1st mover advantage, patented technology, and management expertise

 

I look forward to following the progress of the best 3D printing stock to buy now, Graphene 3D Lab, and will update subscribers when trading begins in the U.S.

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.

 


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.

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.

 

 

CimatronYesterday Cimatron announced the launch of “CimatronE 12” which includes significant productivity improvements and new features supporting 3D Printing technologies.

 

The new software includes conformal cooling channels that are typically manufactured using 3D printing and supports the AMF (Additive Manufacturing File) format which is the new standard for converting 3D models into digital files.

 

UPDATE 8/13/14: Cimatron Announces Record Q2: (Press release)

  • 24% year-over-year increase in non-GAAP operating profit for Q2, to a second quarter record of $2.0 million;
  • 28% year-over-year increase in non-GAAP net profit for Q2, to a second quarter record of $1.5 million;
  • Record Q2 revenues of $11.8 million, a 6.5% year-over-year increase (4.4% on a constant currency basis);
  • 17th consecutive quarter with year-over-year revenue growth on a constant currency basis;
  • Record $7.6 million cash flow from operating activities in the first six months of 2014 leads to end of June net cash balance of $20.4 million or $1.90 per share

3D Printing Software Update:

“As planned, CimatronE version 12 was officially released during July 2014. We have high expectations for this latest version, as it incorporates numerous key enhancements, as well as our first entry into the 3D Printing software market. Initial feedback from the field is very encouraging.”

 


Cimatron’s preparation for this launch included the appointment of industry expert Terry Wohlers to head their 3D printing advisory board. (See article on 3DPrintingIndustry.com)

On the appointment, Mr. Wohlers stated:

“Cimatron has long been a strong player in the CAD/CAM software market, and it is only natural for the company to leverage its knowledge of manufacturing software solutions by exploring opportunities in 3D printing. By 2015, we believe the 3D printing industry will be worth $3.7 billion, and a successful deployment by Cimatron in this market will provide it strong potential for growth. I am honored to have been selected as part of Cimatron’s pioneering efforts in this regard and I look forward to working closely with Cimatron’s management team and Board of Directors.”

 


 

Now officially part of the 3D printing software space, I believe Cimatron (CIMT) represents deep value at current share prices- especially given their lack of debt, record cash flow from operations in Q1,  and over $16M cash in hand to roll out “CimatronE 12” through their existing sales channels.

 

Cimatron EPS Growth and Trailing PE Compared To Other 3D Printing Software Stocks

Company

Quarterly Earnings Growth (yoy)

Trailing PE

Autodesk (NASDAQ:ADSK)

-49.10%

61

Dassault Systèmes(OTCPK:DASTY)

-17.90%

18

Cimatron (CIMT)

7.8%

12

 Source: Yahoo Finance , confirmed with Fidelity Investments.

 Based on average estimates of .51/share in 2014 earnings, and .58/share for 2015, Cimatron trades with a forward PE of 10.

 


 

It’s also worth noting that Cimatron CEO Danny Haran stated in the company’s Q1 conference call that 3D printing applications for their software will be expanded to address additional market needs:

“As we get more information from more customers that they are beginning to adopt metal 3D printing for touch uses, for insets within malls and we expect that to grow. Also, we will provide support for AMF, a format that is more specific for additive manufacturing.

And I see there are other things that already I would say brewing and we expect to have more applications and actually more uses and features and modules in coming versions. It is pretty much as we expected that as soon as we get into this market, we learn much more, we find more opportunities. It’s a very long-term process. It’s a marathon run as the market learns what it can do, what it wants to do, but yes, we expect more uses in coming versions.”

 

Q2 Earnings 

Cimatron will report their Q2 2014 on Wednesday August 13 in premarket with a conference call at 9:00am EDT

 

Conclusion

Cimatron is now officially part of the 3D printing software space and represents deep value at the current share price in comparison to peers.

_________________________________

Disclosure: I am long shares of Cimatron (CIMT). I have not been paid by any company or any third-party for this content.

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.

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.

 

Stratasys Stratasys (SSYS) reported Q2 earnings this morning that were about as good as it gets. 

 

For Q2 2014, Stratasys reported 

  • $178.5 million in revenue
  • 35% organic revenue growth over the same period last year
  • non-GAAP net income growth of 51% over the same period last year to $28.0 million, or $0.55 per diluted share; GAAP net loss was $173,000, or ($0.00) per basic share

Stratasys also raised organic revenue growth forecast for 2014 to at least 30%, versus a previous forecast of at least 25%

  • raised revenue guidance for 2014 to $750 – $770 million versus previous of $660 – $680 million
  • raised non-GAAP net income guidance to $2.25 – $2.35 per diluted share, versus previous $2.15 – $2.25 per diluted share

In premarket trading Stratasys (SSYS) shares are currently up 8%, 3D Systems (DDD) shares are up 2.5%, ExOne (XONE) up 2%, voxeljet (VJET) up 6%, and the major indices are showing a positive open.

 

Stratasys Conference Call 

Today at 8:30 a.m. (ET) at: http://www.media-server.com/m/p/aeagor6k

To participate by telephone, the domestic dial-in number is 877-415-3180 and the international dial-in is 857-244-7323. The access code is 84391755.

 

 _________________________________

 

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

 

 _________________________________

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PyroGenesis CanadaPyroGenesis Canada (PYR.V) is experiencing strong growth as a manufacturer of plasma-based systems for the production of titanium powders used in 3D printing.

The microcap company is the beneficiary of increasing demand for high-grade titanium powders used for 3D printing applications in aerospace, defense, automotive, and medical implants.

Based on announced sales, the company will be generating some 60% of revenue over the next 18 months from the 3D printing industry. With the recent $12.5 million contract win for powder production systems for 3D printing, PyroGenesis is entering a high growth phase with an order backlog now over $20 million and approximately a 350% growth in sales vs. sales in their fiscal year 2013.

To put the company’s $20 million in projected sales into some industry-related perspective, 3D printer manufacturer voxeljet AG reported $16 million in revenues in 2013.


PyroGenesis

Company Overview

Based in Montreal Canada, PyroGenesis (web site) designs,manufactures and sells advanced plasma process systems used in the defense, environmental, oil and gas, and mining industries and now, the 3D printing industry. PyroGenesis has a 3,800 m² manufacturing facility and customers include the U.S. Navy, U.S. Air Force, Carnival Cruise Lines, and Fincantieri Marine Group. 

Shares outstanding: 80.5 million

Market cap: $48 million USD

Ticker: PYR.V  (Toronto Venture Exchange)

Trades on the US OTC market with ticker PYRNF.  However, because the company is not widely known by U.S. investors at this time, trading in PYRNF is typically light and not liquid on a daily basis. This could change as the company becomes more known to US investors in 3D printing.


 

Plasma Atomization Process for Production of High Value Metals in 3D printing

From the PyroGenesis web site:

PyroGenesis Plasma Atomization 3D Printing

PyroGenesis states their systems “produce the most spherical, pure titanium powders”. CEO Peter Pascali explained:

“One of the limiting factors in the full commercialization of 3D printing for metal products is the availability of high-quality, high-purity metal powder. Our patented platform can produce these powders effortlessly. It is a proven product with completed commercial sales having already taken place in North America and Europe. What is more exciting is the demand we are currently experiencing for this product line world-wide.” 


Revenue Growth of “at least 100%” Expected to Continue Next 3 Years

An April 2014 management discussion and analysis states:

“Management fully expect to have at least 100% growth in revenues year over year for the next three years while maintaining competitive gross margins” (page 15)

and

“PyroGenesis has successfully increased sales of its proprietary plasma processes into the high-margin niche market segments in the oil and gas as well as the mining and metallurgical industries; the latter of which includes the recently announced success within the 3D printing industry wherein PyroGenesis has a proven, and commercially available, technology platform which can produce the most spherical Titanium powders highly sought after in 3D printing. The company has further de-risked its business model by starting to incorporate recurring  revenue features within the sales agreement. Management has targeted 2016 as the year in which the Company will be profitable from recurring revenues alone” (page 16).


Conclusion

PyroGenesis Canada is a high-growth microcap experiencing a strong increase in revenue and the majority of their growth is from sales of their titanium powder production systems. As demand for high value metal powders and titanium in particular grow, I think management’s expectation of “at least 100% revenue growth” over the next 3 years may be well-founded.

_________________________________

Disclosure: I am long shares of PyroGenesis Canada (PYR.V). I have not been paid by any company or any third-party for this content.

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.

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.

Zecotek PhotonicsShares in Zecotek Photonics Inc. (ZMSPF) on the U.S. OTC and (ZMS) on the TSX Venture Exchange, are at 52 week lows, a trend I believe will soon be reversed as $2 million in revenue generation will be recorded “before the end of this year” according to management.

 

Zecotek Photonics one year chart

I believe the poor performance in shares of Zecotek is due to one overriding reason: lack of revenue from the $2 million in orders made by photonics industry giant Hamamatsu announced in July and November of last year.

On Friday (8/1/14) I spoke with CEO Dr. A. Zerrouk and CFO Michael Minder to find out why these orders haven’t shown as revenue yet, when they will be, and more about their expansion into the 3D printing space. I also received approval to quote Dr. Zerrouk’s responses below.

 

Company Overview

Founded in 2004, Zecotek Photonics develops imaging, laser, and 3D display systems for applications in the medical, tech, and industrial sectors. The company possesses a rich portfolio of over 50 U.S. and global patents across its three divisions – Imaging Systems, Laser Systems, and 3D Display Systems, and operates laboratories in the U.S., Canada, Singapore, Korea, and Russia.  Zecotek has strategic alliances and joint ventures with CERN in Switzerland, Beijing Opto-Electronics Technology Co. Ltd. in China, the University of Washington in the U.S., and both NuCare Medical Systems and the National NanoFab Center in South Korea. The company is audited by Big Four accounting firm, KPMG.

 

Share Structure                                                  April 2014 corporate profile

98 million shares outstanding

Market cap $54 million


Where’s The Revenue?

Being a R&D company, revenue generation at Zecotek Photonics has been minimal. For the company’s fy 2012 and 2013 combined sales totaled just $76,151 according to page 2 of their audited financials. While revenue increased a bit to $63,812 for the 9 months ended April 30, 2014, it’s clearly not what investors had expected. Announcements of $2 million in orders from Hamamatsu for Zecotek’s patented Lutetium Fine Silicate (LFS) scintillation crystals began in July 2013 and I believe the absence of those sales on Zecotek’s income statement has been the main driver for shares to be at 52 week lows.

Because of this, our call on Friday began with my asking CEO Dr. Zerrouk and CFO Michael Minder:

“Where’s the $2 million in revenue from the Hamamatsu orders…why hasn’t it been recorded yet?”

Dr. Zerrouk explained that the delay in revenue recognition has been due to “the need for customers to reconfigure PET scanners to prepare them for our LFS scintillation crystals” and that he expects the $2 million in sales “to be recorded within the next 4 months.” He also explained that once the bottleneck caused by this need by the OEMs to reconfigure scanners is removed, it “opens the valve for future sales” that should be recorded on a faster schedule.

3D printing stocks and zecotek photonics

Development of New Metal Alloys for 3D Printing Running Ahead of Schedule

Zecotek Photonics is developing new metal alloys for 3D printing, and the process “is running smoothly and ahead of schedule” according to Dr. Zerrouk. Sales of these new 3D printing materials are expected to begin “by the end of this year.” On the 3D printer front, Dr. Zerrouk said the company has resolved a number of key technical challenges and now has the prototype for a high-speed multi-material industrial 3D printer which the company expects to launch commercially next year.

Based on their pending sales of new metal alloys for 3D printing I believe the company will be seen in more 3D printing media reports in the coming weeks. And while it’s speculation on my part, I wouldn’t be surprised to see Zecotek spin off their 3D assets in the future to form a unique publicly traded entity, assuming successful commercialization of their metal alloy materials, 3D printing interface for commercial applications, and high-speed industrial printer.

 

Update on Zecotek’s Patent Lawsuit Filed Against Saint-Gobain and Philips

Another drag on share price for Zecotek Photonics has been the lengthy process involved in the company’s patent lawsuit against Philips and the French conglomerate, Saint-Gobain.

Zecotek Photonics LFS CrystalsZecotek filed the lawsuit in February 2012 for infringement of their U.S. Patent Number 7,132,060. This patent was granted to Zecotek in 2006 and covers the substances and chemical formulations used to grow lutetium fine silicate (LFS) scintillation crystals which are characterized by their combined high light yield and ultra-fast decay times and are typically used in medical scanning devices. The lawsuit alleges that Saint-Gobain’s LYSO crystals infringe Zecotek’s patent, and that Philips infringes by using those crystals in the PET scanners it sells.

Zecotek’s patent case got a strong boost with a favorable Markman Ruling in May and an April 13, 2015 court date has been set. My understanding is that defendants Philips and Saint-Gobain have essentially run out of options to further delay proceedings and the Markman ruling gives Zecotek the upper hand in seeking a settlement.

 

While some investors may have been impatient and thrown in the towel due to the length of time this case has taken, the median time-to-trial in patent cases runs about 2.5 years. Perhaps more importantly, there is a direct relationship between increasing time-to-trial and higher damage awards.

 

Zecotek Photonics patent trial and damages charts

Source: PricewaterhouseCoopers Patent Litigation Study, July 2014

A summary of the history and strengths in Zecotek’s patent case was published by Toronto-based AlphaEdge Inc. last month that’s well worth reading.

space

Conclusion

I think many investors mistakenly expected Zecotek’s patent case to be resolved well prior to what the historic median time frame is, while others expected to see revenue from announced sales reported before end-use customers have made the necessary preparations to accept delivery. I believe the resulting weakness in shares of Zecotek Photonics is temporary and represents an attractive opportunity for investors to initiate or add to a position in the stock.

Some of the largest share price advances are seen as R&D companies begin to generate meaningful revenues. Between Zecotek’s current sales backlog, the likelihood of approval of the company’s LFS scintillation crystals for use at CERN, initial sales of metal alloys for 3D printing expected later this year, and the potential for a substantial settlement in their patent case, there are multiple avenues for meaningful revenue generation in the near term.

_________________________________

Disclosure: I am long shares of Zecotek Photonics (ZMSPF) and plan to continue buying shares. I have not been paid by any company or any third-party for this content.

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.

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

 _________________________________

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ARC Group Looking Good.

Update 8/1/14.
One day after beating the market and rising 2%, ARCW yielded to the market pressures it overcame so impressively the day before and dropped 8% to close at $13.67. 

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For the YTD period, ARC Group Worldwide (ARCW) has strongly outperformed pure play 3D printing stocks.

ARC Group

 

 

 

 

 

 

 

 

 

 

 

 

And today when equities were under pressure with major indices down about 2%, and almost everything related to 3D printing hit hard due to the earnings miss by 3D Systems (DDD), there was an intraday reversal made by ARC Group Worldwide shares which then closed up 2% for the day on volume that was 55% higher than average for the past 30 days.

ARC Group fundamentals

Why?  Solid Existing Fundamentals + Expansion of Revenue via 3D Printing

ARC Group has added 3D printing services to their large injection molding operations via subsidiary 3D Material Technologies. They’ve also brought in Tim Warden, (metals 3D printing industry veteran, consultant to GE Aviation, and a former Vice President at Morris Technologies) as Vice President of Sales and Business Development for 3DMT (see press release).

ARC Group has a trailing PE of 36 and a forward PE of 23 with an average analyst estimate for fy 2015 (which began July 1) raised to .65/share (vs. .58/share 2 months ago). Price/Sales for the ttm period is a modest 2.8 while EPS growth topped 100% in the most recent quarter.

I visited 3D Material Technologies in Junesee “A Visit to “3D Material Technologies, the 3D Printing Division of ARC Group Worldwide (ARCW)

Since then I’ve continued to add to my position in ARC Group because, as today’s earnings report from 3D Systems shows, fundamentals matter.

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Disclosure: I am long shares of ARC Group Worldwide (ARCW).  I have not been paid by any company or any third-party for this content.

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.

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

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3D Systems Earnings3D Systems Earnings are out. The company reported earnings of .16/share on a big revenue miss of  $151.5 million.

 

 

The average analyst estimate was for .18/share. (My estimate was for .16 -.17/shareAverage revenue estimate was $162.28 million.

3D Systems Earnings

Shares of 3D Systems traded up strongly in the last two days, which I believe was partially due to the inaccurate prediction made by RBC that the company would meet revenue and EPS, and was likely to raise guidance for the year. 

Here at 3D PrintingStocks.com the EPS estimate for 3D Systems in Q2 was for .16-17/share.  I also predicted shares would be under pressure today, (they certainly are), and to hold off buying until after this report was out.

However, I also thought the company would beat on revenue so I missed that call.  I’m surprised 3D Systems missed revenue by as much as they did…and that organic revenue growth was a mere 10%.

As I wrote earlier this week, I will be buying shares between now and Q3, when I expect EPS and revenue growth to accelerate.

3D Systems Earnings Webcast/Conference Call

Time: 9:00 a.m. Eastern Time

Webcast: www.3dsystems.com/investor

Participate via telephone:

Within the U.S.: 1-866-953-6860

Outside the U.S.: 1-617-399-3484

Participant code: 39529244

 

 

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Disclosure: I am long shares of 3D Systems. I have not been paid by any company or any third-party for this content.

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.

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

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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.

 

3D Systems Q2 will be announced on Thursday, July 31st in pre-market hours.

Conference call will be at  9:00 a.m. Eastern Time with live webcast @ www.3dsystems.com/investor

3D Systems Q2

There’s no better time for short term trading momentum stocks than around earnings. While most of my articles are geared for long term investors, this article reviews how I plan to play the 3D Systems Q2 earnings in a way that I believe increases the likelihood to get back into my full position at a discount.

 

First of all, I’m not expecting blowout earnings. Although management increased 2014 revenue guidance last month to $695 million-$735 million (from previous guidance of $680 million-$720 million), they kept their earnings guidance unchanged at $0.73 to $0.85/share for the year. 

The average estimate by analysts for this quarter is .18/share on revenue of $162.3 M

3D Systems Q2 2014 estimates

I’m going to guesstimate and say I believe EPS will come in at .16-.17/share, (below estimate of .18/share), with revenue topping the average estimate to exceed $163 million for the quarter.

3D Systems is still digesting the many acquisitions made over the last 12-18 months that I expect will keep earnings growth tepid for Q2 while revenue accelerates. It’s an aggressive business model….buying up nearly everything you can in the space to take advantage of the industry’s 34.9% CAGR (Wohlers), but it comes at the expense of bottom line earnings in the short term.  It also creates risk of course… successfully integrating so many businesses under one umbrella is no easy task and you either believe they’ll pull it off, or they won’t.  I believe they will- the company has a history of successfully integrating dozens of acquisitions in the past.

So, I’m not expecting a blowout in earnings this quarter, which is fine. I want to be fully in 3D Systems shares again before they report Q3 and Q4, when management expects both revenue and EPS to ramp up.  In the Q1 conference call, Damon Gregoire, (CFO), explained:

Please note that we expect a greater portion of our revenue and earnings to be generated during the second half of 2014 as the full impact of our new products and services materializes.”

and looking out further…

“…we fully expect the higher investments that we are currently making to favorably influence our results and competitive advantage of the coming periods. We expect operating leverage to resume in the second half of 2015 and to be fully restored in 2016.”

With this in mind, I’m not expecting very strong numbers on July 31 and the stock could take a hit as a result. In fact, short sellers in the stock seem to be banking on this. Short interest in 3D Systems is high with about 1/3 of the float sold short as of July 15.

I believe the short position in DDD has increased since then based on the trading as compared to SSYS, XONE, and VJET, seen in the 5 day chart below.

3D Systems Q2 chart

Unless earnings come in surprisingly strong, I think shorts will continue to hit the stock over the short term.

That said, short sellers also know what’s expected in Q3 and beyond based…greater acceleration of top and bottom line growth. So I also expect many will be buying to cover their positions as the second half of the year progresses.

“All In” at Q3

As of now I’ve repurchased about 1/4 of the position I’d like to have in 3D Systems and I plan to buy the remainder around Q3 earnings. Unless the company comes out with an earnings blowout (unlikely) and/or increases guidance for the remainder of the year, I don’t plan to rush in.

Now, if the stock craters as it did following the Q1 report, (intraday decline of 27% from the prior close), and there’s no negative guidance revision, I’ll be a buyer Thursday and Friday.  However, I highly doubt that kind of drop will happen this time around and expect trading in a much tighter range with plenty of time to continue averaging into my position over the next few weeks. All this assumes of course EPS and revenue aren’t notably higher than expected. If they are, then I’ll be adding sooner and I’m betting shorts will be covering pretty quickly to protect gains as well.

So this is a bit of a guessing game that will become more clear on Thursday.

What I do know is that:

  • 3D Systems’ work on Project Ara with Google looks like a game-changer for the industry (See: 3D Systems Entering Mass Productions Levels with Project Ara).
  • Key acquisitions of Robtec (a major Latin American service bureau) and Medical Modeling should ramp top and bottom line growth by next year
  • Increased revenue and organic growth is expected in the second half of this year from a wide range of new consumer products, including iSense scanners, Cube 3, CubePro, ChefJet, CeraJet and CubeJet printers
  • Capacity is being added to accelerate Direct Metal 3D printer sales, the demand for which ran ahead of the company’s manufacturing capabilities
  • New software and materials are being launched through the remainder of this year

Due to the above,  I plan to be buying more shares of DDD to regain a full position closer to Q3 and will sit Q2 out.

 

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Disclosure: I am long shares of 3D Systems. I have not been paid by any company or any third-party for this content.

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.

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

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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.

ZecotekIn a press release today, Zecotek Photonics, (ZMSPF) on the U.S. OTC and (ZMS) on the TSX Venture Exchange announced they are developing high-performance materials for additive manufacturing in collaboration with  the Institute of Chemical Physics of the National Academy of Sciences in Yerevan, Armenia.

3D printer stocks

Dr. Levon A. Tavadyan , Director of the Institute of Chemical Physics stated that:

“The collaboration between Zecotek Display Systems, LT-Pyrkal, and the Institute of Chemical Physics will focus on 3D printing systems and high-performance materials applicable in additive manufacturing technologies. We are excited by the opportunity to produce these types of materials for fast 3D printing, and establish with Zecotek, the partnership as a leading supplier of powder metals, alloys and hydride compounds for 3D rapid manufacturing.  The new materials will be used in the laser sintering based 3D printing developed by Zecotek and LT-Pyrkal for prototyping and mass production.”

fast 3D printer by Zecotek

High Speed 3D Printer in Development

On Monday Zecotek also announced their ongoing development of a “high-speed 3D printer which will use high-performance metal alloys and offer technical and commercial advantages over other 3D printing technology” 

Zecotek Photonics

For an in-depth article on Zecotek and their entry into the 3D printing space see:

Zecotek Photonics [OTC:ZMSPF] Enters 3D Printing with Patented, Disruptive Technology

 

Beyond 3D printing, Zecotek also won a critical Markman hearing in a patent lawsuit filed by Zecotek against Philips Healthcare and Saint-Gobain (a $43 billion revenue French materials company) that could pave the way for significant damage awards.

Read more on in their patent dispute and implications for Zecotek here.

 

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Disclosure: I am long shares of Zecotek Photonics. I have not been paid by Zecotek Photonics or any third-party for this content.

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.

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

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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.