It does appear to have a very solid bottom. I don't know if Wed earnings will be a catalyst or what it will take to get the stock back to $12-15, but I have little fear of losing money with an $8 buy and I can't help but believe that as the stock gets wider attention, it rises 50-100% from here.
I have been buying this stock heavily. It is upgrading to a much faster service later this year. It is installed in 2,000 planes and 6,000 business jets and is installing in new planes as fast as it can, including significant international expansion. It has one bigger competitor but new competition should be limited because of the high cost of entry, including difficult negotiations with the FAA.
Investors did not understand that the long sales and installment cycle. It is a good play on (i) increased ubiquity and use of mobile devices and (ii) increased air travel due to lower fuel prices. For now its sales come primarily from the US for low foreign growth and the strong US dollar, which are hurting many companies, don't really affect it. I think it's strong competitive position and small size mean it gets taken out in the next 12 months, probably at 2x its current price
My investment theory has always been to buy stocks that I believe are solid value plays and yet have outstanding growth potential. For instance, when I first bought AAPL in 2003, it was trading at $22 (pre 14-1 splits) and yet had $12 per share in cash. I felt there was little likelihood the stock could go down and yet ample growth potential. Obviously the growth turned out to be extraordinary in that case, and many of my picks don't do quite as well, but I rarely take a big loss with this philosophy.
In my opinion, MTLS fits the criteria of solid value with high growth potential. I think there are lot of "busted IPOs" from 2014 that will be among the best gainers this year and next.
MTLS is the sort of company I sought out when I first invested in 3D printing in 2012, but couldn't find. The reason that DDD and SSYS (my two picks then) did so well is that they were just about the only ways to place the 3D printing boom. Now we have MTLS, which went public just as the valuations for the other two were coming back down to earth. It went public at $12 and is now $8. It offers software that helps manage fleets of 3D printers - it sits in between the design software and the printers. It has a 24 year solid operating history in the software industry and a fast-growing medical software business. It reports Q4 earnings on March 4 and this may be a catalyst for the stock. One knock - like many IPOs, it is controlled 70% by a smaller number of related insiders and has a thin float, so institutions will not buy it and it is not a likely acquisition candidate.
I'm not selling a share. I'm in since 87 cents and am very confident that we see at least $6 within a year. If it surged into the mid to high $5s I might trade out of some shares, but with the expectation of buying back lower.