Investing in 3D printing stocks in 2013

With so much interest (and so much misinformation) in 3D printer-related stocks, and not having written a general overview of the landscape since October 2011, it’s time to provide an update on the subject of investing in these 3D printing companies. I’ll go through what I know about investing in these stocks, but understand that while I am an experienced investor, I am by no means qualified to provide recommendations; so I do not intend discussion of any particular investment as a recommendation to buy or sell.

Full disclosure: at the time of this writing, I own shares of 3D Systems (DDD), Stratasys (SSYS), Organovo (ONVO), Proto Labs (PRLB) and HP (HPQ). I have in the past owned shares of Autodesk (ADSK), Dassault Systemes (DASTY) and Arcam AB (AMAVF) and could buy any of them again in the future.

Overview of Investing in 3D Printer Stocks

To say that 3D printing stocks have been on a tear in recent years would be quite an understatement. The two leading publicly-traded 3D printer companies have outperformed the market significantly of late. The share prices really started moving in the fall of 2011. Since October 1, 2011, both stocks have appreciated almost 400%. Compare this to the S&P 500, which gained 32% during the same period.

The big 3D printer manufacturers

As far as your choices in investing in 3D printing stocks, two companies dominate. In fact, they dominate other companies — private and public — in the actual sales of 3D printers as well. No one else comes close. These are 3D Systems and Stratasys — both manufacturers of 3D printers, and both are profitable and growing rapidly. They also provide rapid prototyping services for industrial and commercial customers. Stratasys is focused on industrial, commercial and professional markets, while 3D Systems, also with a big footprint in those same markets, has pushed the envelope in their acquisitions into other areas of 3D printing, having purchased 30 various companies since 2008. The businesses owned and operated by 3D Systems would be an article in its own right.

When I speak of Stratasys, that now includes the Israeli company, Objet. Last year there was much speculation about whether or not they would go public or be purchased by someone like an HP, but they surprised everyone and announced a merger with Stratasys, which was finalized on December 3, 2012. Objet.com now carries the name Stratasys in their header but their printers still carry the Objet name. The combined company is now publicly traded under the symbol SSYS.

Both Stratasys and 3D Systems have market capitalizations of about three and a half billion dollars. This is much higher than they were a couple short years ago, but as leaders in what most are calling no less than the third industrial revolution, those market caps still have plenty of room to still grow. What’s a billion even get you these days? Just think about 11-employee Instagram, which last year was sold to Facebook for one billion dollars. How much more important is 3D printing than a photo app?

Speaking of acquisitions, I wouldn’t doubt that 3D Systems or Stratasys get bought out someday themselves. These days, larger companies need to buy growth, as it’s difficult for them to grow organically in this very slow economy. Frankly I’m surprised that HP has not already made a play for one of the companies, in as bad of shape as they are, and in such obvious need of something new. Seems right up their alley.

Other 3D printer makers

Two other companies that make 3D printers are Organovo and Arcam AB, but these cannot be thought of in the same categories as the two leaders. Organovo is a highly-specialized, early stage bioprinter company with terrific prospects, but profits are a long way off. And Arcam AB, while successful and growing, is a small company out of Sweden that manufactures small numbers of expensive, high-end, specialty 3D printers. It looks to be a great company, but it is a very thinly-traded stock — few shares trade each day — which can be extremely volatile and not well-suited for the average investor.

CAD software makers

Aside from the hardware, there are companies that sell the 3D modeling software (CAD programs) that engineers use to design what will come out of the 3D printers. The two market leaders, Autodesk and Dassult Systemes are not “pure play” 3D printing companies, meaning the businesses are not solely focused on 3D printing-related activities. However, they do supply the software that is most used by engineers in industrial and commercial applications. Autodesk sells the AutoCAD line and Dassault Systemes the Solidworks line — both are extremely popular, the gold standards for engineers. Autodesk is also getting into the 3D printer enthusiast market with simpler software and apps for non-engineers, but this won’t for some time add much to either the top or bottom line of a company that took in $2.3 billion last fiscal year.

More IPO’s coming…

Yesterday I just read that another maker of 3D printers has filed for an Initial Public Offering (IPO). The company is ExOne, which sells a variety of large-scale printers. We’ll keep our eye on this offering. With everyone trying to find the next DDD or SSYS, I’m certain it will go sky high the first day of its IPO if they don’t price it too richly.

IPO underwriters are certainly taking note of the enthusiasm investors have placed in 3D printer stocks, and you’ll be sure to see more IPO’s in the future. I’m hoping to see Shapeways go public sometime soon. I have a gut feeling that they are going to take the company in that direction, but I have no evidence to back this up.

There are no publicly traded companies that are solely, or even primarily, in the enthusiast-range of printers — the Makerbots of the world. 3D Systems addresses this market with their Cube and CubeX printers, but it is a very small part of their overall business.

Be careful of what people call 3D printing stocks

Something I have taken note of recently is the propensity for writers at investment sites to stretch the meaning of 3D printing. They assign the term to it either in ignorance of the difference of additive and subtractive manufacturing, or apply it too loosely.

One recent example of a non-3D printing company being called a 3D printing company is Proto Labs (PRLB), which was called such a company in an Investors Business Daily article (of all places). The company makes 3D parts from the customers’ uploaded CAD files — and does so very quickly and efficiently in a very modern looking factory — but they use subtractive manufacturing (i.e. CNC, laser cutting) as opposed to the additive technology of 3D printers. However, I did still purchase shares of the stock after I read the article because I’ve seen how small stocks react when the term 3D printing is thrown about, and technically, the chart told me the stock was about to break out as well. I had intended on selling after the breakout, which it accomplished a few days later, but after some research I decided to keep the stock because I think the company really has something going for it — 3D printing or not. It’s an interesting company to look at.

Then there was the Seeking Alpha article that listed “3 exciting 3D printing-related stocks,” one of which is Cimatron (CIMT). But if you look at Cimatron calling it a 3D printing-related company is a bit of a stretch. In the same article, author Stockballer also mentioned Perceptron (PRCP). The company makes a 3D scanner and the software for it, it’s true, but there are a lot of scanners on the market and this is not all that the company does; maybe it will have “potentially greater returns compared to the 3D printing industry leaders 3D Systems Corporation and Stratasys” as the author says. Maybe I’m missing something and it will the next big thing.

The overall point is that you really have to research for yourself every company that someone calls a 3D printing stock. Don’t forget, while there are some terrific stock analysts and assorted gurus on Seeking Alpha, there are a boatload of writers that don’t know more than the next guy.

And by the way, what do I know either? At least I’m not claiming to be an expert and an certainly not advising you — just offering some information and opinions. Don’t trust anything I have to say about investing — you must perform your own due diligence.

Six 3D printing-related stocks

The stocks I discussed that are truly related to 3D printing are shown below with some quick facts, a profile and a weekly stock chart (daily in the case of Arcam). All information is as of the close of the market on January 18, 2013. Some of the profile information was taken from company profiles on company websites.

Take note how the more of a pure play the stock is, the higher the stock appreciation has been. 3D Systems and Stratasys are 100% pure plays — everything they do has to do with 3D printers — and their stock charts reflect that.

3D Systems (DDD)

ddd chart weekly 01-21-13

Market Capitalization: 3.75 billion
Average Daily Volume: 1.9 million per day
Trailing P/E: 96.65
Forward P/E: 42 (appx)

Profile: 3D Systems is a leading, global provider of 3D content-to-print solutions including personal, professional and production 3D printers, integrated print materials and on-demand custom parts services for professionals and consumers alike. In line with their commitment to democratize access and accelerate adoption of affordable 3D printing they also provide creative content development, 3D CAD software, curation services and content downloads. Their integrated solutions replace, displace and complement traditional development and manufacturing methods and reduce the time and cost of designing new products by printing real parts directly from digital input. 3D Systems solutions are used to rapidly design, communicate, prototype and produce functional parts and products, empowering customers to create with confidence.

Comment: This stock beat other stocks in this list in 2012, with an annual appreciation of 247%. The company is extremely acquisitive, practically setting records for how many companies it purchases. There is some discussion on how much of their growth is organic and how much is by acquisition. The company is all over the place in the 3D printing industry, with many disparate companies it is absorbing. The big question: must they continue acquiring companies at the current pace to continue to grow their revenue and earnings at the rate that will satisfy investors?

Stratasys (SSYS)

ssys chart weekly 01-21-13

Market Capitalization: 3.52 billion
Average Daily Volume: 548,563 per day
Trailing P/E: 105.52
Forward P/E: 46 (appx)

Profile: Stratasys Ltd. was formed in 2012 by the merger of Stratasys Inc. and Objet Ltd. The company manufactures 3D printers based on patented FDM and PolyJet inkjet-based technologies. Stratasys systems are used by manufacturers to create models and prototypes to aid in new product design process. Systems range from affordable desktop 3D printers to large production systems for direct digital manufacturing. Stratasys also manufacturers Solidscape 3D Printers and operates the RedEye On Demand digital manufacturing service. The company has over 1000 employees and holds over 500 granted or pending additive manufacturing patents globally. The company’s range of 120 3D printing materials is the widest in the industry and includes over 100 proprietary inkjet-based photopolymer materials and 10 proprietary FDM-based thermoplastic materials.

Comment: The recent merger with Objet is not complete, making it a powerhouse in the area of professional, industrial and commercial 3D printers. The merger brings together the complementary additive technologies of FDM and PolyJet. I like the focus of the new Stratasys, and that it is not on a huge acquisition spree of all sorts of 3D printing-related businesses.

Organovo (ONVO)

onvo chart weekly 01-21-13

Market Capitalization: 220.75 million
Average Daily Volume: 565,297 per day
Trailing P/E: n/a
Forward P/E: n/a

Profile: Organovo has developed and is commercializing the Novogen MMX 3D bioprinter platform technology for the generation of 3D human tissues that can be employed in drug discovery and development, biological research, and as therapeutic implants for the treatment of damaged or degenerating tissues and organs. With bioprinted nerve grafts having already been implanted into rats, Organovo anticipates human trials of bioprinted tissues as early as 2015. Before this time, the company expects its first clients to be medical researchers who will be able to test drugs on Novogen MMX bioprinted organs.

Comment: I look at this company in two ways: as a longterm investment and as a trading vehicle. Even as a long term investment, you have to realize that this is a high-risk, early stage company. It’s always possible it may not even exist in the future. But I’m betting it will with a reasonably-sized allocation. I also trade other shares of the stock at times. I like how they are now working with Autodesk on new 3D modeling software for their Novogen printer. They have also enough cash to last what looks like a couple years with no further funding, and are actively making moves to be able to uplist to the NASDAQ. For a microcap stock, it has a healthy average daily volume, so I am not worried about lack of liquidity.

Autodesk (ADSK)

adsk chart weekly 01-21-13

Market Capitalization: $8.43 billion
Average Daily Volume: 224.7 million per day
Trailing P/E: 35.38
Forward P/E: 13 (appx)

Profile: Autodesk, Inc., is a leader in 3D design, engineering and entertainment software. Customers across the manufacturing, architecture, building, construction, and media and entertainment industries use Autodesk software to design, visualize, and simulate their ideas before they’re ever built or created. Through their apps for iPhone, iPad, iPod, and Android, they’re also making design technology accessible to professional designers as well as amateur designers, homeowners, students, and casual creators. Since its introduction of AutoCAD software in 1982, Autodesk continues to develop the broadest portfolio of state-of-the-art 3D software for global markets.

Comment: Autodesk is not a pure play in 3D printing, but it’s the leader in providing the software that engineers use to create the CAD files necessary for complex models that will be 3D printed. Since it is such a large company with many products across many industries you will have to judge how much you believe 3D printing will help the company to grow. But even beyond 3D printing, the use of CAD software is growing at a quick pace. Although you will have to determine how Autodesk competes with heavyweights such as Solidworks, free software such as Blender, and all the new 3D modeling programs that are popping up.

Dassault Systemes (DASTY)

dasty chart weekly 01-21-13

Market Capitalization: $13.63 billion
Average Daily Volume: 13.655 million per day
Trailing P/E: 33.04
Forward P/E: 22 (appx)

Profile: Dassault Systèmes calls itself the 3DEXPERIENCE Company, and provides business and people with virtual universes to imagine sustainable innovations. Its 3D design software, 3D Digital Mock-Up and Product Lifecycle Management (PLM) solutions transform the way products are designed, produced, and supported.
Dassault Systèmes’ collaborative solutions foster social innovation, expanding possibilities for the virtual world to improve the real world. The group has over 150,000 customers of all sizes, in all industries around the globe. The important thing as it relates to 3D printing is its Solidworks applications, which include 3D Design, Data management, Simulation and Environmental assessments. SolidWorks 3D applications’ include complex part and assembly modeling, production drawing creation, data management, design validation and simulation of motion, flow and structural performance, environmental impact evaluation and publishing. SolidWorks Data Management solutions enable control over all design information, eliminating concerns about version control or data loss.

Comment: This French company is an even bigger company than Autodesk. As as with Autodesk, there is much to it outside of 3D printing. But also like Autodesk, just about everything they do is in three dimensions, resulting in a 3D print or not. I’m a little nervous about France’s recent move to tax the heck out of anything successful in the country, and the continent kicking the economic can down the road again and again (but then again, America is right behind Europe on that one). The stock chart is a thing of beauty.

Arcam AB (AMAVF)

amavf daily chart 01-21-13

Market Capitalization: $96.92 million
Average Daily Volume: 7,269 per day
Trailing P/E: n/a
Forward P/E: n/a

Profile: Arcam is a Swedish company founded in 1997, listed on NASDAQ OMX Stockholm, Sweden, and can be purchased in the US under the symbol AMAVF. It provides a unique Additive Manufacturing technology for production of fully dense metal parts, Electron Beam Melting (EBM). The EBM technology builds parts layer-by-layer from metal powder using a powerful electron beam. Their technology is the result of intensive research and development and has a wide array of applications within the Medical Implant industry and the Aerospace & Defense industry. In addition to the industrial applications the EBM technology is also a platform used for very active academic research. Arcam today has about 60 installations throughout the world. The systems are predominantly used in aerospace and implant applications. The EBM technology is patent-protected in 24 countries including Sweden. The trademark Arcam is protected in 21 countries.

Comment: This stock came to the limelight on December 3, 2012 when a Seeking Alpha article introduced the company to investors. That shot the stock up quite a few points. Then came another article by the same author, which propelled it into the mid 20’s, where it sits now. Arcam is a small, but seemingly impressive company. But here’s the danger: it’s a very small microcap with a very small share float of two million shares. The daily volume on the stock barely registers — prior to its introduction in December, its average daily volume was 600 shares, with more days of not one share trded than days with volume. The stock may have found a new floor in the 20’s. Or not. It doesn’t take many sellers to move a low-volume stock like this down, way down, if the sentiment changes. So, just be careful if you decide to buy shares.

Going forward

The stock prices for 3D Systems and Stratasys — the companies most people buy to invest in 3D printing — are selling at a premium. They are assuming continued high growth and no hiccups along the way. In the event of a stock market shock, or an unexpectedly poor quarterly earnings report, the prices of high-flyers can tumble. So you have to be able to stomach the downs as well as enjoy the ups. I recommend that people only invest as much as allows them to sleep at night, and diversify their holdings. You might become rich and look like a genius by putting all your money into one stock or one sector and hitting it right, but that’s also the way many more people lose most of their money. Been there, done that, before I learned the hard way.

Happy investing.

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Investing in 3D printing stocks in 2013 by

More From 3DPrinter.net

  • http://www.3dprinter.net mark

    Three and a half hours into trading today:

    DDD +6%
    SSYS +2%
    ONVO +20% (not a typo)

  • debbie wolleman

    Are you aware of any ETF that invest in many of these 3D stocks?
    Thank you

    • http://www.3dprinter.net mark

      No, there isn’t one as far as I know. There aren’t enough stocks to put in it yet. But I doubt that will still be true in a couple years.

  • Siva N

    Good write up.
    Keep me informed about investment
    Regards
    Siva

    • Fred Petersen

      Hi Siva,

      Here is an ETF in 3D Printing:

      Solactive 3D Printing Total Return Index

      UBS13D or DE000UBS13DO

      • http://www.3dprinter.net Mark Fleming

        Thanks Fred. As far as I can see, that’s just an index, not an ETF. Indexes are not tradable.

        However, it see a flaw in it and would not purchase it even if I could. It’s current holdings are the following:

        3D Systems Corp.
        Arcam AB
        AUTODESK INC
        CIMATRON LTD
        Exons CO
        PROTO LABS INC
        Stratasys Ltd

        First off, rookie mistake on Protolabs. It’s a CNC company, not a 3D printing company. They must have read all the articles this year calling it a 3D printing company and did not check. (I own that stock though, I like it for other reasons).

        Cimatron? No. Come on.

        Exons Co? Never heard of it. Did they mean Ex One?

  • Mike

    My understanding is that 3D printers have been around for about 30 years…why has the development of the product taken so long? I define development as being a product that works well, is reliable and offers a solid ROI. If you compare 3D printing technology with the advances in personal computers….it has been very slow. Remember the introduction of the IBM XT in 1982…..and how far the PC/Internet business has advanced in the last 20 to 30 years !

    So why has 3D printing taken so long ? Is the technology that more difficult to perfect? Is it that the market is not ready for it yet? Or is it that the applications for 3D printing have not been defined or even discovered?

    As in the PC market it was the LAN/WAN then eventually the internet that was the real catalyst of the entire PC growth.

    I’m convinced that 3D printing/manufacturing/modeling/fabrication or whatever you want to call it…is a game changer…..like many previous technologies – steam engines/internal combustion engines,telephony, TV, PC’s, etc etc..

    Any views on this subject would be appreciated

    Mike

    • Eric W

      Mike, Excellent point about the slow adaptation of consumer 3d printing, but that does not mean that 3D printing is not playing an active role in the industrial realm. How many people have Injection mold machines, CNC Mills, Swiss turning lathes, 5-axis robot welders, etc… in their want to buy list?
      3D printers have been laying in wait unseen to the average man until now. Industry has been using them for 30 years, we are just now seeing the consumer level value of the technology. Also I dont think consumer level 3D printing could even be even possible without the current level of open source software and internet community activity so this is a convergent technology that really couldnt exist before our time.
      Just my take, EW

  • Sam

    Hi Mike, I enjoyed your article, very informative and honest. I am a biochemist and don’t know a thing a out investing or 3d printing but want to know more about both and stumbled on your article. One thing I am curious about is government regulation of 3d printing and if that will have any effect on the growth of this industry.

    Sam

  • Mike

    Mark, I appreciate the fact you don’t come of as someone who claim expertise of said industry. You simply encourage all to do their research. A researchers researcher & a learner learner. You can’t fake genuineness. I wouldn’t be surprised you hold the same views towards films. This is a truly interesting industry to take note of.

    Especially considering the staunch point of this possibly showing hints to a “third industrial revolution”-
    Considering the point that people have been vehemently searching the acres for diamonds of a new industry for a while now. This along with several started, yet forgotten arts; for example, Hologram & Digitization technology might very well be the key(s) to help progress a new set of industries. Much like a surfer, patiently wait for the big kahuna & when it does show up, hold on for the ride, because it’ll be interesting & a story to tell.

    Thanks once again.

    To Success,
    Mike

  • http://3DStockHub.com 3DPrintingInvestor

    For those interested in a bulletin board forum devoted to stocks trading in the 3D Print sector, you might want to go to 3DStockHub.com.

    I’m just launching the site, so there’s not much action yet- that will change over the years, I’m sure.

    Happy Investing,

    Gary

    • bruce

      Gary… Im a new investor to the 3D printing sector..I was considering purchasing 10k of stock in 3D Systems and Stratasys and sitting on the stock for a little while a year or two.. l wanted to know if this a good move or would you have any other recommendations.

      • Gary Anderson

        Hi Bruce,

        I like DDD and SSYS. But you might want to wait for both to report their Q2 earnings in the next week or so. They are priced to perfection and if either one misses estimates, it’s going to have a big drop. One 3D printing company I really like that has been making new highs recently based on strong fundamentals is Arcam AB (AMAVF). I wrote an article about them on Seeking Alpha the other day that will give you an overview of the company and why it looks undervalued to me. Good luck.

        • http://www.3dprinter.net Mark Fleming

          Yes, I think waiting until after earnings might be a good idea; any disappointment and they will be taken down. Or, it would also be prudent to buy half the position now and half sometime after earnings.

          • bruce

            Good deal Gary and Mark… Great advice.. as I said before I am a new investor with 10 to 15k to invest so Im in the educating myself about these companies. I have always been the standard 401k and IRA investor. I am a novice at buying individual stocks or knowing what emerging 3D companies to pick with regards to valuation, liquidity, P/E ratios etc. However Im fairly good understanding company business models and strategic positions to be successful in emerging market places. Im not a short seller and this is why I like DDD and SSYS. I signed up for Seeking Alpha and after reading the article recommended on Arcam AB along with additional research Im convinced I need to consider purchasing some Arcam stock too. Although Arcam is a small cap company, I like their positions in the 3D market with regards to aerospace and automotive and medical industries. I alos cam across an article on Organovo that has really spurred my interest because of its position in the bioprinter market, their work with Autodesk on 3D modeling software and they have a healthy cash position. I realize the volatility of Organovo stock because speculative investors and short sellers and the state of of the company trying to build innovative bioprinters in a rapdily changing marketplace make the stock extremely volatile. However I like thier long term strategy and emerging opportunities of human test trails of bioprinted tissues in 2015. Arcam seems to be in a better position than Organovo but I just wanted to get both of your opinions on considering a buy and hold strategy for Organovo

          • bruce

            Almost forgot.. here is today’s article in Alpha on Organovo.. http://seekingalpha.com/article/1566702-organovo-red-hot-but-set-to-drop

          • Gary Anderson

            For the most part I agree with the SA author about Organovo. While I love their technology and the potential to revolutionize health care in the future, from what I can tell they have no product(s) near FDA approval or commercialization. IMO, the time to buy ONVO was before the uplisting to the NYSE (obviously). I think it’s going to be a volatile trader’s paradise for a while, and for me personally, it’s not something I would buy at the current pps. That doesn’t mean it can’t go much higher- heck, it’s valuation is already based on excitement over their technology and not fundamentals so who knows where it would go. I really don’t want to give investment advice- but the way I look at it is that Arcam’s market cap is about 1/2 of Organovo’s , the company is profitable, growting revenues and net income rapidly, and doesn’t rely on research grants for revenues, and operates in the fastest-growing segment of 3D printing: Precision, high grade metals. I’m just not an Organovo fan here I guess. You mention liquidity- that’s against Arcam. It really doesn’t trade much here right now as you’ve probably noticed, so swings- up and down can be magnified.

          • bruce

            Ok that sounds good Gary.. thanks for the advice and I appreciate the advice on Arcam… I am a buy and hold investor so I understand that I need to look for companies with strong market positions in their business sectors with the potential to deliver strong returns as their markets places mature. I guess thats why Im excited about some of these companies in the 3D arena..Should I wait to make a move on Arcam after 2Q earnings release or should I consider purchasing now.. I just want to make sure I looking in the right direction to jump in

          • Gary Anderson

            Well- Arcam already reported for their first half. They made .30/share vs. .05/share for the year ago period. The stock has been doing pretty good since then (July 22), hitting a new all time high every day. You might want to wait for a pullback? but who knows- it could keep going up for a few more days before consolidating.

          • http://www.3dprinter.net Mark Fleming

            Gary, just ran into this article on Organovo, which is in response to the one out a few days ago that argued against holding ONVO shares. It’s a good read:

            http://seekingalpha.com/article/1572182-clearing-up-some-confusion-on-organovo?source=email_rt_article_title

            I do agree that ONVO is a highly speculative investment. However, it’s one I am willing to risk some money on long term (in addition to trading it often).

          • Gary Anderson

            thanks- I’ll read it.

          • bruce

            Good post Mark… I just an alert on the same story so you beat me to it..lol Ive decided to also buy and hold some Arcam stock based on my previous conversations with Gary.. I cant help but to consider the same for ONVO.. I know they are not as solid as Arcam but they have potential for a huge upside.. reading this article has only increased my temptation to jump on the ONVO bandwagon for the ride

  • SteveH250

    Hi Mark,

    Great article.

    When I take a look at companies to invest in I also look at the supply chain/eco-system that exists around the companies – who uses the technology, complimentary systems which support the products (which you’ve covered off); in this case the other parts of the supply chain I’m interested in are the suppliers to people like 3D Systems and Stratsys, who supplies the components that make up the printers themselves as well as the consumables used after the printers are sold. Do you have any insight into who they might be?

    Cheers – Steve

    • http://www.3dprinter.net Mark Fleming

      I too seek out the supply chain, but have not had any luck wth these companies. The only thing close I have found is someone in the supply chain for a private company named Optomec. The seem to use a nozzle to spray 3D printed electronics, or some part of some electronics, from Sonotek (SOTK), a small publicly traded company. Very lightly traded, but I believe there has been insider buying lately. Problem is, I don’t know if there would be enough volume in these nozzles to make much of an impact.

      • SteveH250

        Thanks Mark – I will keep digging.

        • http://www.3DPrintingStocks.net Gary Anderson

          A company that is also on the metal 3D printing space is Sigma Labs (SGLB).

          This is a speculative penny stock with a tiny market cap of $15M, but they have partnered with no less than GE Aviation in 3D printing of their LEAP engines, and together they are using Sigma Labs’ technology to run quality/inspection checks on the print in real time, on-machine real time.

          This is what GE aviation said about Sigma Labs’ product in their press release (not Sigma Labs- so I’m pretty sure this is the real deal)

          “”Today, post-build inspection procedures account for as much as 25 percent of the time required to produce an additively manufactured engine component,” said Greg Morris, GE Aviation’s business development leader for additive manufacturing. “By conducting those inspection procedures while the component is being built, GE Aviation and Sigma labs will expedite production rates for GE’s additive manufactured engine components like the LEAP fuel nozzle.”

          LINK to GE Aviation pr: http://www.geaviation.com/press/other/other_20130524.html

          It’s probably not a stock that’s well-suited for many people due to it being somewhat thinly traded and very volatile, but I think it’s real…certainly more real than Massive Dynamics (!), with an obvious real product that at least GE Aviation sees enough promis in to help with beta testing. Commercialization/sales of Sigma Labs’ PrintRite 3D system should begin in Q3 or Q4 according to their latest filings with the SEC.

          • 3D Printing Fan

            That company is a bit shady Gary. There’s a post on a place called nanalyze that taks about some suspicious things in the SEC filings like payments made to a unknown company. The stock price is really shooting up though.
            http://www.nanalyze.com/2013/07/2_questions_about_sigma_labs/

          • http://www.3dprinter.net Mark Fleming

            Keeping my eye on it. I bought some shares at 3 cents a week or two ago. I don’t usually buy penny stocks, but I had the feeling it was going to heat up, and it did. I fear all penny stocks, but taking a flyer with a small purchase.

  • http://3dprintingstocks.com Gary Anderson

    Hi Mark,

    I lightened up on SGLB quite a bit since I had shares at a dca just under .03 and the stock hit .10. Never hhurts to take profits after a run like that.
    I agree that the Interactive Machines MOU (which hasn’t been finalized by end of last Q as they hoped) seems odd. I couldn’t find anything other than a wordpress site with very little history or confirmation on who they are/what they do. Also, there is no mention of Interactive Machines in any press release other than the one from Sigma Labs. So not sure what to make of it.

    Obviously the GE Aviation partnership is real though as you point out- the pr was released by them and SGLB and Greg Morris are “old friends” from when the two companies (morris tech. and SGLB) worked together prior to Morris being bought by GE Aviation.

    so- I think SGLB company has promise- and I’m holding my remaing shares to see what develops, but it’s not a stock to put all your money into that’s for sure.

    By the way- Arcam AB just reported eps of .30/share v.s .05/share for the year ago period. 80% sales growth- all organic. It has the lowest pe ratio in 3D printing stocks as far as I can tell. One to watch as it makes new highs.

    • http://www.3dprinter.net Mark Fleming

      I’m kicking my #$$^@ ass for not keeping ARCAM. I just cannot buy it now — it’s on my list to buy when we have a crash, and of course we will at some point this year.

      Hey, unrelatedly, did you see my Himax (HIMX) today? Bought that one big a few bucks ago on analysis that they will supply Google for Google Glass. Confirmed today as Google bought into the company.

  • bruce

    Mark I was considering purchasing 10k of stock in 3D Systems and Stratasys and sitting on the stock for a little while a year or two.. l wanted to know if this a good move or would you have any other recommendations

    • http://www.3dprinter.net Mark Fleming

      See answers above.

  • Proclus

    What about Soligen Technologies?

    • http://www.3dprinter.net Mark Fleming

      Never heard of it so I went to check it out. Crappy website, I mean horrific. The smallest penny stock I’ve ever seen. And they don’t even 3D print from what I see — they do metal casting.

      • Proclus

        I found them on a 3D patent document from 97 that includes all the big players.
        I feel penny stocks are safe obviously and could turn a decent profit.
        If 3D rapid prototyping spills into medical which it has and hopefully continues to do so I think custom knees and biomedical may have some future.
        Comment?

  • Johnny Bananas

    “..I feel penny stocks are safe obviously and could turn a decent profit…”

    That may be one of the worst statements ever made. Maybe you should read this article:

    http://www.nanalyze.com/2013/08/the-dangers-of-over-the-counter-otc-stocks/

    • http://www.3dprinter.net Mark Fleming

      Generally speaking, penny stocks ARE NOT safe. Most people lose all their money. Often. Good luck though.

  • http://3DPrintingStocks.com Gary Anderson

    I have to agree with Mark. Penny stocks are not “investments” in most cases.

    In the case of Soligen tech. they’ve “gone dark” and haven’t filed with the SEC in several years:

    http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000916460&owner=exclude&count=40

    This is basically a shell company as far as I can tell, with no operations.