Nano Dimension is an Israeli-based company that is active in the field of 3D printing of Electronics, most notably printed circuit boards (PCB). The company developed printers based on additive manufacturing (most importantly the DragonFly) that uses two kinds of "inks" - conductive and dielectric non-conductive layers. These printers sell for around $400,000 and usually also lead to recurring revenues of annually $40,000, generated through service contracts and periodic ink sales.
The industry is still at a very early stage - so far the company has only sold 60 of these printers. Also, there is still no other company that can offer a comparable printer. While having a monopoly in an industry usually is beneficial for a company, it could also indicate that no other company believes in the potential of additive manufacturing of PCBs.
From a financial point of view, there is not much to analyze yet as the company has barely any revenue. Currently, the two most important figures are cash and the cash-burn rate. As of the second quarter of 2021, Nano Dimension had roughly $1.4B of cash on its balance sheet, while also being debt-free. As the market cap of the company is only slightly above that value ($1.55B), it implies that the market values the actual business to be close to worthless. Based on the second quarter the, the company loses around $20M per quarter (of which 50% is made up of cash and 50% is made up of stock-based compensation). These losses are certainly going to increase as the company plans to more than triple the number of employees until the end of 2022 in order to be able to faster advance the technology and simultaneously also focus significantly more on sales. With a cash pile that is gradually getting smaller, so will the stock price if there is no tangible operational progress.
On the technical side of things we can see price is bouncing around in a small symmetrical triangle on the daily timeframe.
This gives a good opportunity to go short or long.
As always, you have to wait for confirmation before getting into these types of plays.
RSI flat.
MACD flat.
Keep this on your watchlist.
- Factor Four
The industry is still at a very early stage - so far the company has only sold 60 of these printers. Also, there is still no other company that can offer a comparable printer. While having a monopoly in an industry usually is beneficial for a company, it could also indicate that no other company believes in the potential of additive manufacturing of PCBs.
From a financial point of view, there is not much to analyze yet as the company has barely any revenue. Currently, the two most important figures are cash and the cash-burn rate. As of the second quarter of 2021, Nano Dimension had roughly $1.4B of cash on its balance sheet, while also being debt-free. As the market cap of the company is only slightly above that value ($1.55B), it implies that the market values the actual business to be close to worthless. Based on the second quarter the, the company loses around $20M per quarter (of which 50% is made up of cash and 50% is made up of stock-based compensation). These losses are certainly going to increase as the company plans to more than triple the number of employees until the end of 2022 in order to be able to faster advance the technology and simultaneously also focus significantly more on sales. With a cash pile that is gradually getting smaller, so will the stock price if there is no tangible operational progress.
On the technical side of things we can see price is bouncing around in a small symmetrical triangle on the daily timeframe.
This gives a good opportunity to go short or long.
As always, you have to wait for confirmation before getting into these types of plays.
RSI flat.
MACD flat.
Keep this on your watchlist.
- Factor Four