Do any suppose that there are (were) shareholders who fear that one of the 3D technologies will make machine tools obsolete? The hype relating to 3D has been unreal. The small float is a problem for anyone wanting out. I sold 1/2 back in early March and may buy back if it gets under my average cost.
Current owner of Arcam and comparing the valuations between the two companies - Arcam way overvalued or Hurco undervalued.
Tough to know if a company like Arcam will be able to replace companies who produce conventional machining. Arcam's tech is totally different from Exone, DDD (who purchased Phenix) or other Laser Sintering or laser melting companies, EOS, Concept Laser, SLM Solutions and Renishaw, so the valuation may be warranted.
I do think the Additive Manufacturing process is a real time-saver, but from an overhead standpoint as well I noticed Hurco has about 550 people employed, while Arcam currently has about 60 (but adding).
Sales are higher, so I do see the need for more employees but the Arcam business model looks like they would need about 150 fewer employees to get to the same Rev numbers.
"Small" float is an understatement! Try miniscule. Compared to owning a big blue chip stock, we are almost partners in the firm considering Hurco's tiny share count. It's literally a way to invest like Buffett on a small scale, by taking a meaningful personal stake in an undervalued company with...
If you believe that supposition (as I do) that would be a great thing for Hurco since their high-end machining processes can be cheaper and faster than current process allows. The problem with Hurco IMO, is that no one knows about them - seemingly at all if the lack of posts on this board can be believed. This chart has been trending flat for the last 5 years on average.......However, they do have a very nice installed base and a strong group of loyal customers.
Do you think 3d printing is mostly hype? I do not. Moreover, I suspect the growth of 3d printing will be beneficial down the road for machine tools companies like Hurco. But you are definitely right that a small float stock like this is bound to cause some heartburn for holders. Also, the reason for the recent weakness in HURC is most likely cause by my recent purchase of this stock...I think I am cursed.
I do not want to appear negative. I am heavily invested in HURC.The "ONLY" way for me to get my money out of this stock is ffor another company to take over HURCO.Right now,HURC appears to be dead wood and no good earnings in sight..I LIKE I SAID, IT IS ONLY "MY OPINION"
Regarding 3D hype, I guess I'm just #$%$ at myself for missing it so I must be cursed too.. I actually owned a large amount of 3D Systems in the late 80's then symbol TDSC. I lost a substantial amount of money on it and just couldn't convince myself that the story had changed in 20+ years. Essentially I considered DDD and SSYS manufacturers of tools for pattern makers, modelers and other artisans, not a huge market. The idea that people would buy these for use at home is hype IMO. The new technologies printing metals( AMAVF) looked interesting to me in the 20's but it traded even more thinly than HURC. Now it now over 100. Anyway now the market is getting fragmented with new entries. All the processes are excruciatingly slow but if the metal printers can produce parts with adequate properties they could be a factor in supplying low volume replacement parts.