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Citron takes aim at Voxeljet, other 3D printing plays also off

  • Citron Research has issued a short bearish report on Voxeljet (VJET -16.5%) in which the 3D printer vendor is called "a total [expletive] joke." The firm notes Voxeljet sold only three printers in Q3, and that the deals were enabled by loans and other incentives.
  • Citron also points out insiders sold 1.875M shares through last month's IPO, and netted just $12.09/share (~75% below Voxeljet's current price).
  • The firm's conclusion: "VJET is the winner in Wall Street’s race to the bottom. It’s not even a company, it’s just a hobby."
  • Though Voxeljet is the biggest decliner, other 3D printing plays are staring at big losses for the second straight day: DDD -6.4%. SSYS -4.3%. XONE -7.6%. PRLB -6.2%. Valuations might be weighing on the minds of some investors: 3D Systems and Stratasys still respectively trade at 56x and 47x 2014E EPS.
  • Yesterday: 3D printing, solar stocks reverse course
Comments (35)
  • Esekla
    , contributor
    Comments (2276) | Send Message
     
    This is the beginning of some very necessary differentiation between additive manufacturing companies in the minds of investors. The sympathy moves are one of many news types which were outlined here:

     

    http://bit.ly/1hXCcZ9
    20 Nov 2013, 01:10 PM Reply Like
  • dieter esch
    , contributor
    Comments (2) | Send Message
     
    Citron comments on voxeljet are not only stupid but they are plain lies... I hope they get sued for slender and diffamation. I am sorry that our business community has come down to that level..
    21 Nov 2013, 09:10 AM Reply Like
  • altaire4
    , contributor
    Comments (107) | Send Message
     
    Some of the 3D Printing plays are frothy but this new kind of manufacturing methodology is ..... A Game Changer .... so much so that BIG major companies like GE, HP, Ford and others are leveraging its advantages. I look as this correction as a buying opportunity for proven 3D printing companies.
    20 Nov 2013, 01:23 PM Reply Like
  • djkidm
    , contributor
    Comments (364) | Send Message
     
    Citron Research? A short bearish report? The report was full of banner ads and didn't really provide any real information, just a bunch of one-dimensional claims.

     

    I have never heard of Citron Research until today. I understand that VJET may have gotten ahead of itself as far as valuation goes, but this report shows how little understanding they have of additive manufacturing....

     

    I think I understand.... VJET is comparable to a lemon? Get it? So maybe Citron Research is related to Gravity Research? These analysts are so much smarter than they let on......
    20 Nov 2013, 01:48 PM Reply Like
  • Bradley Sugarman
    , contributor
    Comments (33) | Send Message
     
    Haven't heard of Citron Research.... I bought DDD earlier in the year when Citron Research put out a similar short bearish report for 3d printing. I can't recall the details but buying on that dip paid off big time for me - even after today I'm still up over 100% for the year. I'm not really getting worried yet, this correction was well needed in the 3d printing space.

     

    I was thinking about selling to rebalance but now....
    20 Nov 2013, 02:18 PM Reply Like
  • inside man 55
    , contributor
    Comments (668) | Send Message
     
    I think their major concern was the company provided loans to their customers to purchase the 3D equipment sold in their first quarter as a public company. Even the SEC was wondering about their revenue recognition policies.

     

    While I agree their style is abrasive and they are not a known investment firm, the points raised are valid.
    20 Nov 2013, 02:20 PM Reply Like
  • howlda
    , contributor
    Comments (7) | Send Message
     
    Note to Americans: Citron's comments are solely based on US corporate models. European corporations have different operating models and what may appear questionable here can be a solid business practice there. Voxeljet is a strong company with a great future.
    21 Nov 2013, 03:48 PM Reply Like
  • jerrymd52
    , contributor
    Comments (7) | Send Message
     
    Citron...really? They use expletives, and slang? More importantly, what they say sounds like more of the broken record of things stated already about DDD and XONE in the past, few printers sold, insider sells.... Boring. But scary just the same because of all those out there that act on statements like these.
    20 Nov 2013, 02:25 PM Reply Like
  • djkidm
    , contributor
    Comments (364) | Send Message
     
    Hmmm. Not sure there was anything valid in their hit piece. If the article was written in a professional manner and with some substance then I would consider some of the points raised.

     

    I agree with Bradley however. I got in VJET at 30, and hopefully it can get down there again so I can add more :)

     

    I suppose I owe Citron a thank you....
    20 Nov 2013, 02:25 PM Reply Like
  • dickens1212
    , contributor
    Comment (1) | Send Message
     
    By labeling Vjet as just a hobby, citron demonstrates their utter stupidity (unless they are trying a short squeeze...and that is sleaze. How can they label Vjet products as hobby.....automotive and aerospace are hobbies? Give me a break.
    20 Nov 2013, 02:25 PM Reply Like
  • jerrymd52
    , contributor
    Comments (7) | Send Message
     
    They're all correcting.
    20 Nov 2013, 02:25 PM Reply Like
  • fearlesswidow
    , contributor
    Comments (4) | Send Message
     
    Maybe Citroen is batting for a client who has most to lose from additive manufacturing because of product infringements which need IP protection. But this is a German company operating in a strict, vigilant, and highly structured business atmosphere. To call VJET a "joke" shows Citroen is trying to bring the price down, maybe they want to get it to their desired entry point since they missed out. VJET was specific that they had three of the largest 3D printers available in the market, as well as 53 other smaller printers. They supply 3D printing for Daimler AG, Ford and 3M.
    20 Nov 2013, 02:26 PM Reply Like
  • herringaid
    , contributor
    Comment (1) | Send Message
     
    Did you read the piece? They lied about their revenues.
    20 Nov 2013, 07:24 PM Reply Like
  • djkidm
    , contributor
    Comments (364) | Send Message
     
    I agree. Some of the Big Market investors were asleep at the wheel because VJET's IPO corresponded with so many earnings reports, other IPO's, etc.

     

    So now they realize they missed the boat and need to get in. Expect a slew of hit pieces from now until Christmas so these Portfolio Managers can show their clients they own 3-D companies...

     

    Or something like that :)
    20 Nov 2013, 02:33 PM Reply Like
  • inside man 55
    , contributor
    Comments (668) | Send Message
     
    Yup, that makes sense, expect year end profit taking and hit pieces, buy low, then ramp up the price. :-)
    20 Nov 2013, 02:37 PM Reply Like
  • seekingprofits247
    , contributor
    Comments (27) | Send Message
     
    The "colorful" title with its sensationalizing fonts, size and color and the rest of the garbage are used for one purpose--to scare VJET investors and let trailing stops "fire away". If they were serious analysts, they wouldn't even have to make the statement "We’re not even sure such sales qualify as revenue …" blah, blah, blah. Are you kidding? The style and layout of Citron Research shows what the intent of their "analysis" truly was for and I bet they and all of the other shorts are laughing all the way to the bank....a SALES count as REVENUE and the loan is a liability. And yes, 3 printers were sold NOT 0. I bet they even knew that...
    20 Nov 2013, 03:57 PM Reply Like
  • veryoldinvester
    , contributor
    Comments (7) | Send Message
     
    A rumor,good or bad miss-leads the unknowing armature.
    This is the genesis of additive manufacturing----the possibilities are endless.Buy for your grandchildren----unless you think a blacksmith can produce it.
    20 Nov 2013, 04:11 PM Reply Like
  • hneumann
    , contributor
    Comments (560) | Send Message
     
    Yes, Citron is a joke. With 3D printing there is a lot less waste material, so that is very important. Now and even more so in the future. Expect a strong rebound in 3D stock tomorrow. Besides, I don't trust a lot of 'analysts'.Some publish negative articles just after going short and make a lot of money. Those who understand that could be also.
    20 Nov 2013, 04:24 PM Reply Like
  • iSOBigD
    , contributor
    Comment (1) | Send Message
     
    Isn't "Citron research" just a guy's blog? According to the page, it's just Andrew Left's blog. He wrote a badly written blog post and people panicked. Best of all, he's someone who apparently makes money when a stock goes down - and it worked perfectly when reputable places like Reuters quoted his blog.

     

    Good job, I'll go blog about Google sucking and see if that drops 30% and people take me seriously.
    21 Nov 2013, 11:43 AM Reply Like
  • Andreas Hopf
    , contributor
    Comments (7849) | Send Message
     
    Citron is a lemon in a grapefruit's guise.

     

    However, 3DP stocks are in bubble territory.
    21 Nov 2013, 12:56 PM Reply Like
  • seekingprofits247
    , contributor
    Comments (27) | Send Message
     
    Even Reuters picked up Citron's incompetence or was it Citron's part...here's a quote they cite from the alleged research report..."We're not even sure such sales qualify as revenue ... that would depend on who the parties are and the collectability of the receivables, but why ruin a good bubble," Citron said.

     

    "We're not even sure", but believe what we say...got love those trailing stops...well at least Citron does...

     

    Maybe making that statement keeps them out of legal trouble. But I wonder if categorically stating that the company sold 0 printers does......
    20 Nov 2013, 04:57 PM Reply Like
  • StepUp
    , contributor
    Comments (420) | Send Message
     
    I am glad I went with DDD. A real company with actual revenue.
    20 Nov 2013, 05:40 PM Reply Like
  • Andreas Hopf
    , contributor
    Comments (7849) | Send Message
     
    I don't own VJET at the moment, as it is yet another 3DP fantasy stock. Working in this field, I rather attend the Euromold, the industry's key fair.

     

    But, one thing is certain: Citron always was and still is a lemon, possibly a grapefruit.
    20 Nov 2013, 05:55 PM Reply Like
  • djkidm
    , contributor
    Comments (364) | Send Message
     
    Just curious... Why a fantasy stock?
    20 Nov 2013, 07:54 PM Reply Like
  • Andreas Hopf
    , contributor
    Comments (7849) | Send Message
     
    All 3DP stocks are grossly overvalued. 3DP was known as rapid prototyping originally and has been commonly used in industry and engineering since the mid 90s, increasing every year since. The sales of some CNC machines grows even faster, yet Mori Sieki is uncool; it does not smack of 50s "say once fick shun". Most article writers in magazines or blogs could not even tell their Delrin from Corian.

     

    Two years ago, uneducated journalists and bloggers discovered this area for its hype and article writing potential. Remember the lesson from 2000 or, failing that, look hard at Gartner's Emerging Technologies Hype Cycle chart, read a Wohlers Report or visit the Euromold trade fair before investing.
    21 Nov 2013, 02:15 AM Reply Like
  • sunny4578
    , contributor
    Comments (2) | Send Message
     
    I'm still a Big believer in the industry. This is a temp correction and that's it. A great buying opportunity for us! I'm buying more for sure!
    20 Nov 2013, 07:24 PM Reply Like
  • Timty1293
    , contributor
    Comment (1) | Send Message
     
    Last time a new innovative technology came out that everybody was skeptical about, many non believers and uneducated people also labeled the item a hobby. If you're wondering what I'm referring to, it's the personal computer. Whereas I may not believe that 3D printers will be in our homes in 20 years, I do feel that you will see them popping up in every part of manufacturing. As an engineer at a school that thrives on new technology, it's obvious that 3D printing is no longer a joke but a manufacturing marvel we will all become acquainted with some how. Cheap. Fast. Intelligent.
    20 Nov 2013, 08:36 PM Reply Like
  • pcaflisch
    , contributor
    Comments (149) | Send Message
     
    timty.... I agree about the personal computer... Funny about home printer use is just trinkets and stuff. Can't imagine why I'd want to have one...but then I think about the early personal computer and now I can't do without mine. .... thank God for the "early adapters". They provide the early sales income to sustain companies until new improvement for "the masses" comes along.
    20 Nov 2013, 09:38 PM Reply Like
  • chadm
    , contributor
    Comments (35) | Send Message
     
    My trailing stop was triggered and I pulled in a 92% return in less then a month. Now I need to decide if I trust vjet enough to jump back in at these new lower prices. The volatility at the moment has me feeling a bit nervous about re entering the market... Let alone investing in vjet. I'm going to sit on the sidelines until things settle down. I see more profit taking over the next couple weeks... With the potential of a significant correction taking place. Time for me to let things cool off. The market is way too skittish.
    20 Nov 2013, 10:29 PM Reply Like
  • copalisade
    , contributor
    Comments (2) | Send Message
     
    djkidm, you say you never heard of citron? read value digger aipha posting feb 24 titled "china microcap basket trade update - part 4. google the name andrew left and read on. do you think he has changed? he is citron and every other news reort today should have included his name. do you think he was working alone today and yesterday? another question, andrew left posts articles on alpha. with his past and more than likely his present why is he allowed to do so? he certainly has slandered vjet and soiled the water for long term investors with his selfserving, misleading comments. was he alone? i doubt it. he doesn 't have that much muscle to cause the harm that took place today and yesterday.
    21 Nov 2013, 12:07 AM Reply Like
  • Tinobanbino
    , contributor
    Comment (1) | Send Message
     
    Obviously, it doesn't take a rocket-scientist to see this move. A group of wealthy investors put in their huge short positions, then they pay off this Citron dude, to put out a bad report on VJET, letting him know that the dirtier the report, the bigger the bonus for him. Now, they're laughing all the way to the bank. Same type of report was done on 3D printing companies like 6-8 months ago..
    21 Nov 2013, 09:09 AM Reply Like
  • User 17750732
    , contributor
    Comments (8) | Send Message
     
    You guys all write for the same company? You'd never know it.

     

    $DDD & $ONVO holdings over a year. Two siblings with SSYS as well........We didn't see this blood-bath coming. Your publications NOT tactfully handled, positive one day - negative the next.

     

    Maybe you should just STOP for a day or TWO while we all catch our breath & stop being flooded with "Whose on First"...

     

    "Though Voxeljet is the biggest decliner, other 3D printing plays are staring at big losses for the second straight day: DDD -6.4%. SSYS -4.3%. XONE -7.6%. PRLB -6.2%. Valuations might be weighing on the minds of some investors: 3D Systems and Stratasys still respectively trade at 56x and 47x 2014E EPS."
    21 Nov 2013, 11:43 AM Reply Like
  • rocker101
    , contributor
    Comments (7) | Send Message
     
    http://bit.ly/1fmS0mc‎ Check them out yourself.

     

    "voxeljet operates, what it believes is one of Europe's largest service centres for on-demand production of metal-casting moulds and models"

     

    Selling their printers is just one part of their business.
    21 Nov 2013, 11:45 AM Reply Like
  • howlda
    , contributor
    Comments (7) | Send Message
     
    Citron knows nothing about European business practices (it is a different game there, my friends), and Citron's article reflects this ignorance. Voxeljet is a great company with a strong future, and investors need to educate themselves so as not to be sidetracked by Citron's ignorance.
    21 Nov 2013, 03:48 PM Reply Like
  • THEDEVMAN1
    , contributor
    Comments (6) | Send Message
     
    Well $VJET is still an IPO,and subject to going though the gangland beat down to see if it can make it. I look at what MW did to NQ, and NQ is recovering (although I am not getting any). For me, these trumped up reports make the prices drop so the retail investor like myself can afford to get some. So I did, and It was cheaper than my FB buy in. It may even go down more next week, but in the long run I think it will be profitable. If 3D printing is not a game changer for manufacturing, then they'd better come up with something better like a... Replicator! Now I'd buy that for a dollar.
    24 Nov 2013, 05:02 AM Reply Like
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