ExOne And Arcam: A Fundamental Tale Of 2 3-D Printing Companies

| About: Arcam AB (AMAVF)
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ExOne (NASDAQ:XONE) and Arcam (OTCPK:AMAVF) are two 3-D Printing companies with a business focus in the high-growth metals segment of the industry.

ExOne enjoyed a successful IPO on the NASDAQ GM in February of this year, and Arcam AB up-listed to the NASDAQ OMX (ARCM.ST) last year and trades as an ADR, (American Depository Receipt) in the United States.

My prior Seeking Alpha profile of Arcam can be reviewed here. Both companies have stocks that are on a winning streak as the 6 month chart below confirms.

(Click to enlarge)

However, in the last month there's been an increase in average daily volume of little-known Arcam AB with a corresponding share price appreciation that is out-pacing ExOne.

(Click to enlarge)

I believe there is early rotation going into Arcam AB as investors are becoming aware of the company's fundamentals, positive TTM EPS of .85/share, comparatively tiny market capitalization, and tight share structure which are outlined below.




Shares Outstanding



Market Capitalization






(trailing twelve months)






Net Income



Profit Margin


+ 11.7%

Net Income/diluted share


+ .85/share

Total Debt (mrq)



Book Value/share (mrq)



Operating Cash Flow



(source: Yahoo Finance)

Arcam AB CEO Gives Positive Outlook

In a Q&A conducted with the CEO of Arcam AB, Magnus René on Seeking Alpha last week, the forward look for the remainder of 2013 was strong. The company already has more orders for their 3-D printing machines to be delivered in the second half of 2013 (lead time averages 3 months) than they delivered in the first half.

Mr. René also stated: "With the good growth in first 6 months of 2013 and the strong order book we have a solid foundation for continued strong growth in 2013 and beyond."

Invest Like Wayne Gretzky

Successful investors can take a page from legendary hockey player Wayne Gretzky, well known not only for his superior playing ability, but this quote when asked how he is so successful in playing hockey. To that question Gretzky replied, "I skate to where the puck is going to be, not where it has been".

Increasing volume into Arcam AB on both the US market and on the NASDAQ OMX suggest there are some skaters heading to where the puck is going to be right now.

Moreover, I believe that this increase in volume and share price is occurring based on fundamentals.

As Arcam AB is discovered by more investors as having the lowest PE ratio combined with the highest rate of organic growth (sales increased 80% in the first half of 2013), with no dilutive acquisitions and a strong remainder of 2013 outlined by management, I expect this upward trend in volume and share price to continue. This expectation holds as long as there are no major market setbacks.

Disclosure: I am long OTCPK:AMAVF, XONE. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.