Desktop Metal via /r/wallstreetbets #stocks #wallstreetbets #investing

About Desktop Metal:

  • Industry: Computer Peripherals
  • Desktop Metal, Inc. engages in the manufacture of additive manufacturing solutions accessible to engineering, design, and manufacturing applications. It operates through the following geographical segments: Americas, Europe Middle East, and Africa, and Asia Pacific. The firm offers 3D printing machines.
  • Market cap 1,55B
  • Price:~5$

These days trying to make electric version of everything became a standard and by researching and developing new products you need prototypes. Is there another way to make a prototype than a 3d printer? ” Quickly 3D print functional prototypes and reduce product development timelines. ” as they said.

Sectors where 3D printing can improve:

  • Healthcare 7,38T $
  • Aerospace 1,32T $
  • Automotive 2,62T $
  • Manufacturing 2,13T $

Thats just some that come to my mind and just an estimation but can visualize that it can profit from at least 25%(13T $) of the us market(52T $). Even with the competitors that is a huge slice of a cake.

Their revenue keeps growing

They keep getting assets

A huge risk could be at this phase of a company if they have too much debt. The industry average is 57M$ debt with D/E less than 0,7. DM have D/E 0,02, almost 20M$ what is basically nothing, like a couple GME call would have made that in the last week.

Hedgies and insiders:

Fulop Ric(CEO) owns 7% of the company. Vanguard owns 6,1% and is keep buying since it was 14.90$ thats a great indication that 5$ is a really good discount. Blackrock owns 4,7% and also buying since 14$. $DM top ownership

What could indicate better that a company is in the good direction when the CEO is buying and just to look classy here is a quote from Peter Lynch “insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.”

CEO past experience:

Other similar companies after IPO that does not generate huge revenue because they are in the early “build a factory phase” drop around 50% after a spike. For example Rivian is in this phase also dropping -80% from ATH and -67% since IPO. Other example Tesla in the early weeks after IPO hit 7.30$ and dropped -42% and struggled for almost 2 years to dont get below that ~4.50$ level.

For a catalyst I am looking for a new big contract like Rivian and Amazon or after an earnings drop around 10% could be a great entry point for the long term.

What do you guys think about this company?

Submitted March 30, 2022 at 10:25PM by swatopluke
via reddit