I wouldn't say a buyout would be best for XONE. A buyout would be a quick 50-100% pop from current levels ... but longer term I see XONE being a strong niche player in its area and having multiples of current revenue.
Basically either XONE continues to grow and be strong it its niche ... or it eventually gets bought out. The getting bought out is a "fail safe" backup for if they can't grow the company how they'd like to.
But again,either way you cut it equals higher pps for XONE than its at now. ;)
DDD buyout better for XONE than DDD most likely in the short term and perhaps even in the long run for just the reason you stated cyber.
It had a nice breakout today ... making higher highs and higher lows, a good sign.
Overall the chart looks great since the day after earnings #s. I think the uptrend continues. It won't be straight up and there will be some battles with shorts ... but looking good so far.
And the acquisitions being made by DDD and SSYS at high premiums show that they bigger players can more easily buy innovation that grow it organically. I think XONE and VJET still gravitate towards each other and a more common p/s value of 10-11 going forward.
The wall street excuse is a bit of a cop out. the company provided guidance and missed evey single time so far, not wall street.
That said it's all in front of them. davejonas42 part of what I read in your post is my general thought, i.e. perhaps it's still a little early for this sector.
If it isn't they will prove it otherwise this quarter with $15M-$20M in revenue and decent 2015 guidance.
I agree it may given the short interest. I'm probably getting out if this thing hits 24 or 25 again though. The next time the market in general takes a big downturn, this is one of the places I will come back to for sure. I love 3d printing as a long term play, but given where the S and P is at, its hard to think of investments in more than a 6 month window these days.
I completely agree, wallstreet has expected things to happen overnight like a magic wand but the real world doesnt work that way. I do expect swings thats why I like this stock, and I really think the next large swings are going to be heading north this time!
I've followed these guys since the day they went public. They disappoint every single quarter because they simply do not sell a lot of machines. There's no definitive sales cycle and they're biggest client might be in Russia somewhere where there are sanctions. Having said that, the space they are in is to me the future of 3d printing, industrial metals. Consumer printers will be cool but will not ultimately move the needle. Manufacturing, infrastructure, aerospace... that's the future and metal is the material to get there.
NOW... XONE is apparently in the right space but have got to figure out how to play the game with wall street. They are setting up shop for much more capacity but I think we're still a year out from them starting to produce more... and probably 2-3 years from the next major 3d printing advancement. The tech is the future but it's not mainstream yet. Expect more big swings from XONE until there's more stability.
well its about the bad being past us... These guys are positioned extremely well heading into Q4 and 2015. I could tell as soon as the Q3 release that this thing had bottomed out, volume has been way down. Shorts have to slowly cover but anything positive and this thing is set to take off. Q4 reves look to me to be 15-20 million and i assume closer to higher side so if you have 20 mil v 11 mil Q4 ly... Thats +81% growth right there!
The Street had a technical article this morning that liked 5 or 6 stocks set-up including this and DDD.
If i was forced to pick it would definitely be XONE long over DDD. I think DDD is already having integration issues with all of their acquisitions not counting this latest one.
Big move up for the sector today.
The only news i see is a cash buyout of CIMT by DDD at a fairly good premium with the deal coming in under $98 according to the article on it.
The thought was in my head at $23 but was holding out for at least $24.
The volume has still been light on the pullback so may get a bounce back up soon.
The one thing where many of these 3D's are connected is the specialized ETFs.
That can be a weight on shares or help pull them up but it's outside volume that will truly move the stock.
I was hoping for a higher push towards the top bollinger band but looks like it's not be be for now, I would have been more tempted with similar action towards $25-$26 as opposed to $23.
XONE is the only stock green in the sector. All others 1-3% down. Nasdaq is down a bit. I hope XONE keeps it up. If we had the Naz and sector green it would help. But nice to see XONE bucking the trend. Like I said ... its going to rectify the valuation imbalance to its peers ... sooner or later.
Thanks Hapi. I appreciate the civil discussions as well.
And I do admit that I have gone a little overly into the "pumper" status lately but I'm just glad to see XONE going in the right direction as a company and stock. I was a little nervous doubling down before the CC but I'm glad I did. Right now XONE is the best performing stock I bought in the downturn these last few months.
I didn't get the 3Q pop I was hoping for but I think intermediate/long term XONE rectifies the "imbalance" between itself and its peers and goes back to a p/s valuation of 10+. And I think the upside is possibly quite large with the company and stock from here. There will be ups and downs and it will probably have some opportunities for short term gains on the downside, but I think intermediate/longer term it up from here.
But all of course jmho. ;)
In terms of strategic growth opportunities, acquisitions we’ve focused on just little pieces in the past here that have supplemented our base of core business. I’m not interested in stepping outside of the core business. The binder jetting opportunity is a multibillion dollar opportunity as it matures itself over the coming years. It’s big enough for us to say, “Let’s stay where we’re the smartest, where we’re the best, and we’re making our best penetration,” and so we may consider other things that complement our existing strategy. The existing strategies of ExCast, and our machine sales, and our machine growth. Certainly, David mentioned the new machine we will have much more to say about that later, so it’s a great opportunity that we’re sort of keeping under wraps for the time being for intelligent reasons.
Finally, we are focusing on getting to a sustained level of profitability and I think that that’s an obligation that we obviously have to our marketplace. Brian mentioned that our cap ex is essentially over so that we don’t radically diminish cash unless we were to continue with losses and we don’t see that happening so we have enough cash still to make our way through the markets and so I feel that we’re positioned to look at a couple of acquisition opportunities. Strategically also, we have a couple of other growth initiatives in our marketplaces for some very, very large responses in government programs which can impact us positively in ’15 and also even external to the US government, but in other areas where we have promising initiatives in foreign markets.
One could be acquisitive in nature, another could be if we pick up one or two $15 million or $20 million programs that were specific to different needs and those can get you to the profit level and your hope is that they become recurrent so that you’re stabilized in your profitability. Will we start off with this great new revelation in Q1? Probably not, Q1 has always been a little soft anyway, but we have a lot that we’re trying to get done in Q1 that is all moving on target at this point in terms of these initiatives and so if that happens I would say at the very least if the running rate for the fourth quarter holds up we could see profitability in the fourth quarter.
So it’s just a question of getting sustaining running rates at the higher levels and I believe that we have a lot of reason to think that that’s going to occur.
Sentiment: Strong Buy