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Active investor and trader since my teens, mostly in high tech stocks who successfully navigated the treacherous Chinese small cap market. I now focus my investment research and dollars on 3D printing companies exclusively and manage what is considered to be the Internet's largest and most... More
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  • Bold Prediction: Stratasys (SSYS) Will Buy Arcam AB (AMAVF) 14 comments
    Sep 11, 2013 11:25 AM | about stocks: SSYS, AMAVF

    As many who follow Stratasys (NASDAQ:SSYS) know, the company has now secured Makerbot with cash and shares, putting them firmly into the personal 3d printing consumer market.

    But the big growth in 3d printing is projected to be in high grade metals 3d printing..and not for just rapid prototyping, but for larger scale production.

    They (Stratasys) are now engaging in a follow-on offering to sell 4.0 million shares of common stock to raise $409 million in new capital.

    I believe they will use the majority of these new funds for an acquisition, and it's no secret Stratasys has been looking to add to their current plastics-dominated 3d printing offerings by expanding into a metals focus.

    Scott Crump: "Because there is so much opportunity we also will selectively grow though M&A. We have an organic project to get Stratasys into additive metal. It's rational to say that through M&A we want to expand with different technology on a dual path."

    http://www.bloomberg.com/news/2013-06-25/stratasys-plans-purchases-for-3-d-printing-using-metals.html

    I am predicting here and now, on 9/11/2013, that I believe Stratasys is seriously looking at acquiring Swedish 3d metals printing company and their patented Electron Beam Melting (EBM)technology, Arcam AB (OTCPK:AMAVF).

    EBM technology is probably as attractive to Stratasys right now as it is PricewaterhouseCoopers: http://3dprintingstocks.com/3d-printing-and-ebm-electron-beam-melting/

    I own shares in both companies and am perfectly happy if I am proven to be correct, or if Stratasys has another acquisition target in mind, or none at all at the present time.

    I haven't seen any industry analyst make this prediction yet, so I thought I'd jump out and make it myself.

    Gary Anderson

    http://3dprintingstocks.com/

    Disclosure: I am long SSYS, OTCPK:AMAVF.

    Themes: 3d printing, M A Stocks: SSYS, AMAVF
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Comments (14)
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  • gtabmx
    , contributor
    Comments (86) | Send Message
     
    Slightly on and off topic, I'd like to buy some AMAVF on OTC but my broker claims its not possible through them as it is non-DTCC eligible. Any ideas?
    11 Sep 2013, 12:39 PM Reply Like
  • 3D Printing Investor
    , contributor
    Comments (450) | Send Message
     
    Author’s reply » I don't know why your broker doesn't allow it. I use Fidelity for my Arcam shares without any problems.
    11 Sep 2013, 01:03 PM Reply Like
  • greatA47
    , contributor
    Comment (1) | Send Message
     
    I have easily purchased them through my ameritrade app
    FYI.
    1 Oct 2013, 08:52 AM Reply Like
  • gtabmx
    , contributor
    Comments (86) | Send Message
     
    Questrade... they claim that the stock must be settled manually and for cost reasons they do not do it....
    11 Sep 2013, 01:16 PM Reply Like
  • 3D Printing Investor
    , contributor
    Comments (450) | Send Message
     
    Author’s reply » Yes, they have to settle manually @ Fidelity also- and they charge an extra $50 to do it for each trade. So I've always tried to buy shares in as large a lot as I can afford. It's been worth every penny also.

     

    I'd tell Questrade"I want the shares and you either find a way to settle it manually or I'm taking my business to someone who will".

     

    But I can be a hard-%@# sometimes, lol.
    11 Sep 2013, 01:44 PM Reply Like
  • dou89
    , contributor
    Comments (74) | Send Message
     
    I use scottrade. Buy myself. $7. AMAVF. No problem.
    11 Sep 2013, 06:44 PM Reply Like
  • 3D Printing Investor
    , contributor
    Comments (450) | Send Message
     
    Author’s reply » Wow- I need to call Fidelity and raise hell if they're charging me $50 to for a foreign transaction fee and Scottrade isn't. Thanks. I should at least get some free trades out of this, LOL.
    12 Sep 2013, 07:52 AM Reply Like
  • TryingToMakeSenseOfItAll
    , contributor
    Comments (45) | Send Message
     
    conspiracy or coincidence? They are trading within 5 cents of each other as I look at my screen!!
    11 Sep 2013, 09:47 PM Reply Like
  • baunbaek
    , contributor
    Comments (2) | Send Message
     
    Very interesting. Stratasys and arcam were partners for a long time, so stratasys must know arcam very well. How do you expect the transaction to be financed (cash -proceeds from stock sale, new shares, new debt).? What price can we expect (higher than the present value of exone - I hope). Could there be other potential bidders?
    11 Sep 2013, 09:47 PM Reply Like
  • 3D Printing Investor
    , contributor
    Comments (450) | Send Message
     
    Author’s reply » baunbaek- well, if it does happen my guess is it would require cash and shares. This wouldn't be a cheap acquisition for SSYS. Have no idea if it does happen what the price would be at, or if it would be a true acquisition or more of a merger of sorts.
    Other bidders? Sure- I think a company like GE Aviation, Boeing, etc. could always step in and buy up Arcam. For giants like those the price would be the equivalent of a rounding error.

     

    And lastly of course- this is just speculation on my part. I think the fit would be great for Stratasys. I own both so am happy either way, but I know Stratasys wants to expand into metals so Arcam seems like a logical move to me.
    12 Sep 2013, 07:50 AM Reply Like
  • George Anast, M.D.
    , contributor
    Comments (303) | Send Message
     
    Stratasys can offer little in the way of technical help or technology, but they do have a world wide sales network. Arcam is catching on nicely by itself. I would not rule out a sale or merger, but doubt that Arcam feels the need right this moment. One or two years from now they may well feel differently. Be fun to watch. And don't forget 3D they may want to buy Arcam after the next storm door company they acquire.
    15 Sep 2013, 09:27 AM Reply Like
  • CarlRichard
    , contributor
    Comments (32) | Send Message
     
    I bought shares of ARCAM through TD Ameritrade but had to go through the trade desk and found out later I can't put a stop loss on the trade, or even 'triggers', because it is a pink sheet issue. Thinking that if I am going to dabble in these stocks, may need a different broker for that. From what dou89 says, sounds like Scottrade is the easiest way to go.
    24 Sep 2013, 07:59 AM Reply Like
  • User 14089622
    , contributor
    Comment (1) | Send Message
     
    Etrade charge $10 for AMAVF trade only.
    26 Sep 2013, 09:23 PM Reply Like
  • Lela517
    , contributor
    Comments (2) | Send Message
     
    I have bought AMAVF through Schwab no diffrently than my buy on other stocks.
    28 Oct 2013, 04:05 AM Reply Like
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