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
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$.
Whalewisdom.com $DM top ownership
What could indicate better that a company is in the good direction when the CEO is buying and just to look classy here is a quote from Peter Lynch “insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.”
CEO past experience:https://www.linkedin.com/in/ricfulop
Other similar companies after IPO that does not generate huge revenue because they are in the early “build a factory phase” drop around 50% after a spike. For example Rivian is in this phase also dropping -80% from ATH and -67% since IPO. Other example Tesla in the early weeks after IPO hit 7.30$ 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
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