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3D Printing Investor
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Active investor and trader since my teens. I retired early from my career in healthcare administration and have been a full time investor for 5 years. I write about 3D Printing Stocks on my site @ 3DPrintingStocks.com, as well as small and microcap stocks (no pinks or junk!) at MicrocapResearch.com
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  • Join Me At MicrocapResearch.com

    Hello,

    While I'll continue to write about stocks in the 3D printing space, I'm launching a new, FREE site at MicrocapResearch.com to cover biotech, pharma, and robotic stocks with market caps of $100 million-$700 million dollars.

    The site is off to a great start, with our first 3 picks (NASDAQ:SRNE), (NASDAQ:RMTI)and (OTCQB:NVIV) up an average of 24% in under 3 weeks. Most recent pick is (OTCQB:VUZI).

    We don't cover pink sheet or grey market junk. We only write about the BEST microcap and small cap stocks on the verge of significant moves due to near term positive forward events.

    My partner and I have decades of experience in identifying emerging trends and promising small and microcap stocks. We invite you to subscribe for free to MicrocapResearch.com and get informative, actionable information on great stocks for 2015 and beyond.

    Check us out at MicrocapResearch.com.

    and Best Wishes for profitable investing!

    Gary Anderson

    Jan 03 11:50 AM | Link | 1 Comment
  • Sorrento Therapeutics (SRNE) Could Be THE Most Disruptive Company In Cancer R&D

    Please see article and (two great videos!) on Sorrento Therapeutics (NASDAQ:SRNE) at my new site MicrocapResearch.com

    Gary

    Dec 26 10:40 AM | Link | Comment!
  • With A Unique 3D Printer For The PCB Industry Launching, Analysts See 120% EPS Growth At Camtek

    This article will articulate why the average analyst estimate for 120% EPS growth at Camtek (NASDAQ:CAMT) in 2015 is reasonable and why I believe shares are poised to double over the next 6-8 months.

    Company Overview

    Founded in 1987 and based in Israel, Camtek Ltd. develops and manufactures optical systems for the inspection of semiconductor wafers, integrated circuit substrates, and printed circuit boards (PCB). The company has 480 full time employees and a noteworthy patent portfolio which is concentrated in the inspection and production of semiconductors and printed circuit boards. Camtek has approximately 30 million shares outstanding, a market capitalization just under $100 million, and generated $91 million in sales for the trailing twelve months.

    Camtek's "Gryphon" 3D Inkjet Printer Enters $70 Billion PCB Industry

    After several years in development and having recently passed beta-testing, Camtek's "Gryphon" 3D printer, which utilizes multiple print head inkjet technology, is now on the verge of commercialization in the PCB industry.

    The global PCB market is estimated to grow from $62 billion last year to $74 billion by 2018 (Research and Markets), and the Gryphon addresses several needs within the industry that could lead to strong sales.

    Today's PCB is comprised of hundreds of individual components, multiple layers of copper conductors, fire retardant insulators, multiple plated thru holes, and connectors. Manufacturers are squeezing more and more onto smaller and smaller boards, and a leading cause of PCB failure is from imprecise/faulty solder mask application on increasingly crowded and complex circuit boards. Solder mask is a thin polymer layer applied to printed circuit boards for protection against oxidation and to prevent formation of unwanted bridges within the circuit. The alignment of solder mask on the PCB must be as close to perfect as possible.

    Camtek engineered the Gryphon to meet the needs of the highly competitive PCB industry for improved deposition of solder mask onto circuit boards at a lower cost and higher yield. The Gryphon uses direct deposition of solder mask only where it is needed vs. the traditional "spray on, wash off" technologies currently in use. Using the Gryphon, the end result is a PCB on which an even layer of solder mask has been applied, with perfect "holes" where the electrical components are to be connected.

    More Efficient PCB Manufacturing Process

    The current Direct Imaging (NYSEARCA:DI) and Laser Direct Imaging (LDI) technologies for solder mask deposition involve:

    1. Applying the solder mask evenly the PCB
    2. Drying in an oven
    3. Removal of excess solder mask using UV light
    4. Chemical wash for removal of solder mask from the areas where electrical components will be connected

    The Gryphon replaces today's multi-step, labor intensive, DI/LDI "spray on/wash off" manufacturing process, transforming it into a one-step, digitized operation. The Gryphon saves valuable floor space, (allowing increased production by PCB manufacturers without the expense of facility expansion), cycle time, and money…while producing a higher quality circuit board with improved solder mask deposition.

    Cost savings for PCB manufacturers using Camtek's Gryphon are estimated at 40% according to Camtek's CEO in a conference call earlier this year. The combination of manufacturing a superior PCB combined with an estimated 40% savings in cost and the ability to expand production using existing floor space could drive strong sales of the Gryphon when sales start in the current and next quarter.

    (click to enlarge)

    Average Analysts Estimate is for 120% EPS Growth in 2015

    The average analyst estimate has EPS growing from a projected .15/share this year to .33/share for 2015, giving the company a forward PE of 9.

    I believe the average estimate of .33/share next year is within reach. With only 30 million shares outstanding and a strong balance sheet (see below), if Camtek manages to capture even a tiny fraction of the multi-billion dollar PCB manufacturing industry, it will have a significant impact on earnings. Because the Gryphon was developed using cash and cash flow from operations, there is no share dilution to future earnings. Moreover, in addition to system sales, Camtek will realize recurring revenue streams from consumables used by the Gryphon printers.

    Early Success/Initial Customer

    The Gryphon surpassed rigid technical specifications during an extended beta test using high volume printing by a leading PCB manufacturer, Eltek Ltd.

    Roberto Tulman Deputy CEO of Eltek stated:

    This new technology helps us fabricate PCBs with better solder mask registration and shorter lead times. Operator training has already begun and we look forward to incorporating this new capability within our production process and realizing its full potential.

    From this statement it appears that not only did the Gryphon perform well in testing, Eltek may will be an early customer.

    Camtek recently opened a sales center in the heart of Silicon Valley for PCB manufacturers to demo the Gryphon and expected deliveries and revenue recognition will begin in Q1 of 2015.

    Strong Balance Sheet for Commercialization

    Camtek's commercialization of the Gryphon printer will be facilitated by a strong balance sheet. The company has .79/share in cash, no long term debt, positive cash flow from current operations, and a healthy current ratio of 3.1.

    Balance Sheet

    Total Cash (mrq):

    24.22M

    Total Cash Per Share (mrq):

    0.79

    Total Debt (mrq):

    0.00

    Total Debt/Equity (mrq):

    N/A

    Current Ratio (mrq):

    3.12

    Book Value Per Share (mrq):

    2.15

    Price Target

    Given the recent successful beta test results of the Gryphon, the company's strong balance sheet, trailing PE of 24 (below the average of 29 for Semiconductor Equipment & Materials), and EPS expected to more than double in 2015 according to analysts, I believe CAMT shares are presently undervalued and poised to move higher.

    My 6-8 month price target for CAMT is $6.00-$6.20/share.

    While I believe the average analyst estimate for .33/share next year can be achieved based on reasons discussed above, my price target assumes a more conservative EPS of .25/share for 2015 and assigns the current trailing PE multiple of 24.

    Potential Investment Risks

    Potential risks include lower than expected adoption rates of Gryphon printers by the PCB industry, a delay in commercialization, technical issues with the printer, production delays, declining global PCB demand, competing technologies, and more. Investors are also cautioned that only two analysts follow Camtek at this time and their forecasting models are an approximation of future earnings.

    Tags: CAMT, long-ideas
    Dec 02 5:49 AM | Link | Comment!
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