What's up guys and welcome back to the
channel today I want to talk about a
stock that i've covered on the channel
before but now I think that this has hit
rock bottom and is looking up. This has
some major institutional investors
buying up shares recently such as Blackrock
Morgan Stanley and Cathie Wood are
convinced. so let's talk about nndm, nano
dimension. This company is at the cutting
edge of technology and the company is
now trading at a price that values the
company at little more than its cash
value which provides a rare opportunity
in the market. If you've been watching my
channel over the past few months then
you will have seen the huge gains that
we made recently
over the past few months we've seen 9x
gains on ILUS since my first ILUS
video.
We've had 10x gains on Shiba inu from
the time of my first Shiba inu video
back in may when nobody else was talking
about this if you watched my recent
petrotek videos I covered the stock a
few weeks ago at only 11 cents telling
you about a potential buy-out offer
coming this stock reached as high as 34
cents just a few days later and even now
it's a bargain at only 18 cents the
board of directors currently has an
offer on the table to buy the shares at
74 cents per share so what are you
waiting for hit that subscribe button
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encourage everyone to do your own due
diligence now let's dive into it.
So who are nano dimension? Nano-dimension is a
provider of intelligent machines and
fabrication of additively manufactured
electronics ame
ama technology is a unique technique to
print hype heads high performance
electronic devices layer by layer from
scratch
high pads are electronic boards with
complex geometrics
that cannot be produced in the
traditional pcb manufacturing process
the technology injects simultaneously
dielectric polymer ink and conductive
silver ink from from a special printer
called the dragonfly ldm
AMEtechnology presents significant
advantages over traditional
manufacturing processes for example in
printed antennas
it quickly adjusts to the required size
of the pads and their distances between
layers hence reducing production time it
enables the printing of several types of
antennas as one unit in a single print
step
unlike the traditional way in which
antennas are assembled from multiple
parts prepared by various technologies
it enables varied components to be
printed on the same batch which
accelerates the optimization process the
ama technology allows for multi-layer
boards to be created by providing up to
52 layers with connections between
layers this is a vast improvement from
traditional technology which provides
single-sided and double-sided pcbs this
technology also allows the flexible
circuitry the global flexible circuit
industry recorded revenue of 13 billion
in 2019 and is expected to grow at a
rate of 11 for the next few years demand
for this will surely further increase
with the need for lighter smaller
devices with greater functionality and
wearable tech
the company's main product is the
dragonfly the light out digital
manufacturing system is the industry's
only comprehensive additive
manufacturing platform for around the
clock 3d printing of electric of
electronic circuitry
the precision platform uniquely
integrates an extremely precise inkjet
deposition printer
with dedicated nano inks and optimized
3d software to print electronic circuits
such as printed circuit boards antennas
capacitors and sensors
this is state of the air technology
this is very much the technology of the
future but today
in my opinion their technology is so
advanced that the market
that they are aiming at hasn't even got
to a stage of needing their technology
yet
what sets nanodimension aside from other
operators in the 3d printing space is
that they are specifically focused on
the niche of 3d printed
electronics this is a market that is
expected to be worth somewhere between
2.3
and 3.9 billion by 2026. so i've just
come across this article which I think
is a fantastic read the company is
sitting on a joint pile of cash worth
1.4 billion dollars but is slowly
bleeding this cash in the absence of any
significant revenue
right now not enough
customers are finding applications
however there are five possible triggers
that could make the stock explode
nano dimension is slowly burning through
its big 1.4 billion
pile of cash but could at any moment
reach an inflection point that could
lead to a big jump in the stock's price
overnight
now since this article was published in
nndm have spent some of this cash very
wisely which I will speak about in a
moment
and they have just released their latest
financials in the past few days so i
will look at this in a few minutes too
investors who closely follow Cathie wood
know that she is fond of nano dimension
she has gradually built up positions in
the stock and now has ownership of over
seven point six percent of the company
since may her two funds made more
purchases but starting from august 30th
the ark q fund started again to purchase
the stock this raises the question of
whether or not now is a good time to buy
and as we can see
Cathie has been buying ever since
cathy has added to her NNDM
position every day so far this week
as well as adding more shares last month
too
now although it is widely regarded that
3d printing is the future this is seen
as a very risky sector to be investing
in and while there are some very good
companies in the 3d sector in ndm have
little to no competition
as it says here while having a monopoly
in an industry usually is beneficial for
the company it could also indicate that
no other company believes in the
potential of additive manufacturing of
pcbs
as I have said before nano dimensions
technology is so advanced that it may
take years for real world applications
to come to light
in order to justify today's valuation of
1.5 billion the company has to sell four
to five hundred machines every year
assuming that the price of the printers
and inks remain stable and the healthy
margins can be reached
a huge issue here is that only 60
machines have been sold since 2017
main customers and potential customers
are in the defense sector the automotive
industry
the medical industry the aerospace
industry and research institutes now
it's worth mentioning here
that we are now nearly two years into a
situation where a lot of companies
are very reluctant to invest heavily in
equipment when there is a huge chance of
lockdowns and restrictions that could
impact the use of these machines
let's face it no company is going to
spend four hundred thousand dollars on a
machine if they think that staff might
end up working from home
in my opinion the past two years are not
a true reflection of the demand for
these types of machines
bear in mind too
these are all industries that are
currently either completely focused on
other things right now
research institutes and medical industry
that goes without saying the airline and
aerospace industries have been one of
the hardest hit over the past two years
the real future market size for this
industry is rather difficult to estimate
nano dimension estimates the market size
by comparing it to traditional 3d
printing
traditional 3d printing
started to slowly gain traction at the
beginning of the 90s but only really
took off after 2010
nano dimension believes that additive
manufacturing of electronics is now
where traditional 3d printing was in
1995
but it also thinks
that this time
it will be quicker to become mainstream
as companies nowadays are used to using
3d printing and are more open to these
to these types of technology changes
companies are solely using the printer
for prototyping but the holy grail for
nano dimension will be the use of its
printers in mass production
so there are a number of potential
triggers and this is very interesting
because I feel some of these are
actually highly likely
jove stern doesn't believe that revenues
and profit will gradually increase going
forward for the foreseeable future most
likely revenues will stay low however
stern also mentioned
that he is confident
that there will be an inflection point
which when reached will lead to massive
price increase of the stock
similar to an fda approval for a biotech
company
now if you've been watching the markets
in recent weeks we've seen a number of
biotech companies go parabolic
even this week we've seen buyer frontera
gain over 100 in one day
and longever on gain over one thousand
percent going from three dollars up to a
crazy 45 dollars in less than a week
so these gains can happen very quickly
for stocks that have been slowly
bleeding for months which nano dimension
has been doing
so the first potential trigger is
acquisitions
jovester has spoken about this before
the main purpose of raising 1.4 billion
dollars is to acquire complementary
companies that can either give better
access to customers or help advance the
technology capabilities of the company
and he is not willing to overpay and so
far meaningful acquisitions are only
slowly progressing the second trigger is
operational advantages now this is very
interesting and for me this is the most
likely
nanodimensions 3d printers cannot keep
up the status quo products but going
forward the production will become
cheaper faster less
error prone and more flexible
this point is similar to how 2020 seemed
to be an inflection point for electric
vehicles
as evs finally were able to compete with
regular cares
and soon be even better than them
with some delay in the fourth quarter
nano dimension will release a new and
better version of their dragonfly line
and this is something the company have
just done
I will look at this in some detail later
but first let's look at the inflection
point for ev companies in 2020
it's easy to talk about tesla here but
let's not forget about how this trend
has continued with the likes of
rivian
lucid neo and soon pollster ii
in late 2019 tesla was trading at under
fifty dollars
two years later it's worth more than
eleven hundred dollars the sAMEcan be
said for neo
this was trading in only one dollar
before running up to over sixty dollars
in little more than fourteen months
and this comes after years of downtrends
and moving sideways
the next trigger is onshoring bringing
back production to the us and europe
I think this is less likely but it is
possible
at the very least western companies
would invest more in production
machinery of which at least a part of
this could be in 3d printers for pcbs
but for me trigger number four is the
most likely to drive a sudden spike in
the share price
if an industry-leading company such as
tesla would place a sizable order or
enter into some kind of partnership with
an ndm it would send out strong message
to tesla competitors and even to
companies from other industries
the order or partnership would be a
commercial proof of concept which will
certainly make the company's vision more
trustworthy so let's take into account
here that the company have only sold
about 70 machines to date
let's compare this with tesla for years
tesla was selling very small numbers of
cares
but that has taken off over the past
couple of years
and so has the share price as we just
looked at
then just last month
hertz the car rental company announced
plans to buy 100 000 teslas
this pushed tesla share price up
over 25
in just a few days which doesn't sound
like much until you put a dollar
valuation on it tesla's valuation gained
over 200 billion dollars in just a few
days so these types of announcements can
be gAMEchanging
the final trigger here is environmental
protection and I think that this is
self-explanatory
3d printing uses less energy reduces
material waste and most importantly gets
rid of most of the necessary
transportation
the conclusion here is that the company
has a big pile of cash
and this cash is responsible for around
90 percent of the company's current
market capitalization
although there is a risk here
there is always the chance of reaching
an inflection point and winning big and
I fully agree with this
since the time of this article was
written the share price of nano
dimension had continued to fall
and the latest financials have just been
released
at the moment the current market cap of
nano dimension
is only
1.27 billion
while the company has 1.1 billion in
cash reserves in fact between cash and
all other assets the total assets are
over 1.5 billion
with little more than 28 million in
liabilities so it's easy to see why
Cathie wood has been loading up recently
on nano dimension right now this stock
is trading at a discount to its asset
value so if you believe in this industry
and this technology then right now is
this is a huge bargain
the cash burn rate for nano is not
extreme so as long as they invest wisely
they have more than enough cash to last
for several years
looking at market beat we can see that
nano is currently in the lower quarter
of its 50-day range and just bounced off
rock bottom of its 52-week range this
week which suggests huge upside
potential
the market cap of the company is only
about
1.27 billion dollars with average volume
of over 16 million shares
institutional investors here own over 33
of the company and they have been buying
up shares during the year
this includes blackrock and morgan
stanley amongst others interestingly arc
invest is not listed here but further
down the page
we can see that 135 institutional
investors and hedge funds held shares of
nanodimension the most heavily invested
institutions are air confessed
with shares totaling
134.91 million dollars state street
with 37 million and blackrock with 27.9
million dollars
and with Cathie investing heavy into nano
dimension again this week I feel
that the time is very near for this
stock to bounce back strong
so guys that brings us to the end of the
video if you've watched all the way
through then hit that like button it
really helps the channel out a lot
there's a lot that I did not get to
cover in this video today
such as a detailed look into the
company's financials that were just
released
nor did I get a chance to look at the
new dragonfly machine or the recent
acquisitions
if you want to know more about this and
want to hear my thoughts
on the technology or the acquisitions
or the future for this company in
general then drop a comment down below
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