Bet on a Well-Capitalized Manufacturing Disruptor with Nano Dimension
InvestorPlace - Stock Market News, Stock Advice & Trading Tips NNDM stock offers exposure to a truly one-of-a-kind entity in the 3D printing niche...
It’s surprising that Israel-based 3D printing firm Nano Dimension (NASDAQ:NNDM) doesn’t get more respect in the trading community. Perhaps some folks simply prefer to avoid NNDM stock because it has been pigeonholed as a “meme stock.”
Granted, it’s definitely possible that Reddit users targeted Nano Dimension for a short squeeze earlier this year. It’s also true that the share price has declined substantially during the past six months.
However, I would invite true value hunters to consider NNDM stock objectively, without attaching any labels. That’s because, with a thorough analysis, you might find that there’s a rare gem of a bargain here. It’s not everyday we discover companies that have the potential to upend a niche market as we know it.
NNDM Stock at a Glance
It would be difficult to prove that Reddit traders were directly responsible for NNDM stock’s precipitous ascent in January. Yet, it’s probably not a coincidence that this was the pinnacle of meme-stock mania. During this time, the Nano Dimension share price blasted from $8 and change to a 52-week high of $17.89.
Unfortunately, the buyers were met with fierce resistance at that point. Starting in early February, NNDM fell to $6 and stayed in that area for a long while.
As of the close on Sept. 8, this stock was still trading at $6 and change. So, the investors are definitely being tested. And the only way to pass that test? Patience.
This doesn’t mean sitting around and hoping that the Reddit crowd starts a short-squeeze operation. As the old saying goes, hope isn’t a strategy.
Rather, the best reason to hold onto a stock is because you believe in the company. So, let’s delve into the fundamentals of Nano Dimension and see if there’s a future for this bold 3D printing innovator.
A Robotic Brain and Plenty of Cash
One criterion to look for in any company is its capital position. Does the business have enough cash and other capital reserves to continue its operations for a long time?
Not long ago, Nano Dimension provided the answer to this question in its second-quarter 2021 financial results. NNDM also emphasized the transformative nature of its technology in that press release.
For example, the team at Nano Dimension is clearly proud of DeepCube, the artificial intelligence engine (or “Robotic Brain”) which powers the company’s “self-learning, self-correcting high yield 3D additive manufacturing machines.”
On top of the Robotic Brain, though, Nano Dimension reported having a whopping $1.397 billion in financial reserves. With that, the company is able to “plan for at least 5-6 years with proper qualifiable, quantifiable and measurable milestones and gateways.”
Basically, there is both innovative tech and funding behind NNDM stock.
A Different Type of Investment
Some people find it hard to appreciate the transformative potential of Nano Dimension’s 3D printing technology. Some are even dead set against this name, no matter what you tell them.
So, there’s no denying that NNDM stock can’t appeal to everyone. Even CEO Yoav Stern acknowledged that this name is “a different type of investment.” However, sometimes the most unusual businesses can outperform the rest.
Stern offered data to support his company’s audacious business model, observing that Nano Dimension’s “revenue and gross margin (net of amortization of intangibles) for the first half of 2021 were up by 68% and 40% compared to similar periods in 2020.”
Breaking that down to dollar figures, Nano Dimension reported revenues of $811,000 for Q2 2021, easily outperforming the $288,000 from the year-ago quarter. Moreover, for the first half of 2021, this company generated $1.62 million in revenues. That handily surpassed the $990,000 it reported for the first half of 2020.
The Takeaway on NNDM Stock
Not everybody will appreciate the Robotic Brain, or Nano Dimension’s powerful vision for 3D printing. However, the fiscal data shows that this company is in a solid capital position. What’s more, its generating strong revenues as well.
We don’t need to convince every single investor to believe in Nano Dimension. Rather as long as you’re holding NNDM — and have confidence in the company — that’s good enough.
Consider buying NNDM stock.
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On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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