let's talk about 3d printing. What's up
investors and welcome back to the
channel. (Nano-dimension)
This stock is hugely undervalued right
now and in a position to seriously take
advantage of the current market crash.
Now, it's been a long time since I made a
nano-dimension video but there has been
some big news this past week and with
upcoming catalysts this could be a very
good time to be looking at this stock I
like to find stocks that are either
undervalued or have catalysts that could
push the stock price up and in my
opinion. ($nndm stock)
this stock has both right now and I will
be looking at all of this in this video
of course with stock market crashing
right now it is a tough time for
everybody (NNDM Stock)
but these falling prices are beginning
to provide opportunities that we have
not seen over the past two years
in ndm it's one of my favorite stocks
and the valuation of this company is way
off in my opinion I feel management can
take advantage in the current market
but while the stock market is crashing i
think it is only fair that I talk about
any negatives regarding this stock as
well as looking at the potential risks
too. #nndm
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i want to point out that i'm not a
financial advisor and this is not
financial advice now let's get into it
with a quick overview for anyone who's
new to the channel. #nndm
Who are nano-dimension? Nano-Dimension
is a provider of intelligent machines
and fabrication of additively
manufactured electronics ame
ame technology is a unique technique to
print hype heads high performance
electronic devices layer by layer from
scratch high pits are electronic boards
with complex geometrics
that can be produced in the traditional
pcb manufacturing process
the technology injects simultaneously
dielectric polymer ink and conductive
silver ink from from a special printer
called the dragonfly ldm. ($aapl)
AME technology 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 for 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
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 (#pennystock)
and 3.9 billion by 2026. (nndm stock)
so this week see nano dimension make an
announcement that was fairly unexpected
that seen a big spike in volume and
caused the share price to gain more than
30 percent in just one week
nano dimension approved the repurchase
of up to 100 million dollars worth of
shares and this caused heavy trading and
positive investor reactions that sent
the stock higher
now with the stock having hit as low as
just 2.17 recently that buyback could
mean as much as nearly 20 percent of the
shares so it is no surprise that the
stock
price made significant gains
however and this is very important the
company also mentions that it is not
required to buy back the full number of
shares that the program allows it will
be repurchasing shares from time to time
throughout the year share buyback
programs are popular among investors as
they are a sign of strength but also
typically increase
the price of a company's stock
and of course that makes sense in the
most simple of ways obviously if there
are fewer outstanding shares then the
value per share should increase as long
as there is no fundamental changes that
way the overall valuation of the company
does not change
and the share buyback is generally a
sign of strength because companies do
need to have sufficient cash on hand to
be able to do this without affecting a
company's business obligations
but in this case they are not under any
obligation to buy back all of these 100
million dollars of shares so I will be
keeping an eye on this to see what
management do over the coming months and
i will keep an eye on what institutional
investors are doing too
now the stock market crash has been very
hard so far this year and I think that
this will continue for some time I feel
that all the major exchanges not just
nasdaq are still massively inflated.
Like over the past six months we've seen
the likes of tesla dropping around 50
percent of its value
but don't forget that stocks like nano
dimension and other penny stocks have
been dropping for far longer and have
dropped far more than this. ($nndm stock)
nano dimension has dropped so much that
it is not only trading below its book
value but the company is also trading
far below its cash value
and even after a share buyback this will
still be the case and I will look at the
financials in just a moment to show this
more clearly
the market crash
and the unfavorable macroeconomic
outlook has unfairly disadvantaged
growth strategies and some of the major
institutional investors that were
considered like geniuses two years ago
are now completely disregarded in 2022
this is something that I spoke about in
previous videos for a long time kathy
wood at eric invest was buying an indian
stock
on a regular basis as we can see here
looking throughout 2021
ark were adding nndm stock to several of
their etfs whereas this was seen as a
very good thing in 2020 and early 2021
when eric invests were doing very well
in recent months negative sentiment
towards arc has helped push down several
of the stocks in their etfs however this
month for the first time in more than a
year kathy wood has trimmed her nano
dimension
position on consecutive days
selling stock here on monday tuesday
wednesday and thursday
for a total of about 1.7 million shares
so although this is a sizable sale and
it might seem like cathy is selling out
of her position in in nano dimension
let's remember that she did the same
thing in february 2021 before then
spending the rest of the year adding
shares
and air convests do still hold roughly
16 million shares of nano dimension
stock however with the confidence in ark
invest at all time lows it does seem
like the only thing worse for stocks
right now than ark invest selling is
where eric invests are actually buying
but where arc have been selling other
institutional investors have been adding
to their positions
guys if you've watched this fair into
the video thank you so much for watching
i really appreciate it if you have not
already done so help me hit my targets
by liking the video and commenting below
i would love to hear your thoughts on
what you expect for nano dimension over
the next five years but also give me
your thoughts on the current stock
market crash and how long that you think
this will last
with the recently filed 13 f's we can
see that the likes of renaissance
clearline capital and morgan stanley
have massively added to their position
over the past quarter morgan stanley
reported a 201 percent increase in
ownership of nndm stock an increase of
three million shares since february so
yes
as i've highlighted here in blue some
institutions have also been selling
shares like for example you'll see here
wells fargo and amundi
who recently reduced their positions by
50 and 87
and while this is a huge percentage we
are only talking about a few thousand
shares this is nothing in comparison to
the amount of shares that are being
bought by institutions looking at the
chairs since the beginning of the year
we can see that nanodemension had been
moving sideways within this three to
four dollar channel up until mid april
but then the stock dropped to its lowest
point in over two years this month and
provided a great buying opportunity
before quickly regaining
then the share buyback news helped push
the stock back to three dollars I find
it very difficult to see the logic in
this current valuation of the company
remember that this is the lowest point
the lowest point that this has been
since mid 2020.
back then nano dimension was not in such
a fantastic financial position as it is
now
i see this as an incredible opportunity
to get into this stock while it is this
cheap
remember that in two weeks on may 31st
nano demention will be publishing their
latest earnings report which will show
an increase in revenue of 39 quarter of
a quarter and over 1100 percent
over the same quarter last year
with the cash and deposit balance at
about 1.3 billion dollars
looking at the most recent financial
statements released back in march we can
see that nanodemension had increased
revenue significantly from 2020 to 2021
however despite this increased revenue
there was a very sizable loss of over
200 million for this year
but it's important to realize that this
loss is mainly due to this impairment
loss
where there was a write down of goodwill
relating to the goodwill acquired from
the acquisition of deep cube
nano fabrica and asymtec
this situation is one of the reasons why
i hate to see large goodwill figures in
the assets
but it's important to remember that this
is a one-off
and we will not see another impairment
for this again
looking at the balance sheet we can see
that nanodimension
at that huge cash amount which makes up
the majority of 1.3 billion dollars in
assets while the company only has 45
million
in liabilities
giving nano dimension total equity of
1.34 billion dollars
now this is something that I see very
often is investors looking at companies
share prices and not taking into account
the market capitalization of these
companies
i see this very regularly with penny
stocks and I cannot understand the logic
of looking at a company's share price
without considering the market
capitalization of the company
in the case of nano the share price is
less than three dollars but more
importantly the market cap has now
dropped to about 700 million
this means that the company is trading
near 50 percent of its equity value or
about 650 million under book value
this is incredibly rare to see
before I give you my conclusion on this
talk I would greatly appreciate if you
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from my conclusion I think there's a lot
to like about nano dimension going
forward at this price I feel the company
is being completely undervalued this is
still a very
early stage growth company and although
revenue is very low it is growing
and the forecast is that it will grow
much more the risk of course is that
this does not happen but I feel that
with the current market cap now about
600 million dollars below the company's
book value there is huge risk protection
given the cash on hand and the current
cash burn rate it would take about seven
years of cash burn before
nndm would be trading at cash value
again
but cash alone is not enough to make a
good investment
they need to use this wisely and there
are other things to consider
from a business point of view
like I said many times before for
nanodimension it could take one big
contract with a major company to provide
a proof of concept that could act as a
catalyst to drive this company forward
then of course there are plenty who
believe that 3d printing
may not be the future of printed circuit
boards and there are plenty of people
who believe the 3d printing in general
will never become mainstream
this is the risk that we take with these
emerging technology stocks
but for me this is not a stock for the
short term I feel that investment here
could take years to see a sizeable
return
but I do rate this as being very low
risk with potentially very high rewards
but remember that I am not a financial
advisor and this is just my opinion and
not financial advice
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