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908 Devices - Mass Spectrometry, Not For The Masses

Apr. 04, 2021 9:39 AM ET908 Devices Inc. (MASS)9 Comments


  • 908 Devices has seen a soft first quarter as a publicly traded company.
  • This quarter was accompanied by a softer guidance for 2021 as well, despite a big army contract.
  • I like the long-term opportunity, yet am a bit cautious given the moderate operational performance.
  • Looking for more investing ideas like this one? Get them exclusively at Value In Corporate Events. Learn More »

908 Devices (NASDAQ:MASS) attracted my interest late in 2020 when the company went public. I devoted a small article to the company at the time of the IPO in an article called ''a very interesting offering'', although I tempered expectations a bit after a 150% return in its first day of trading.

Back To December

908 is a purpose-built handheld mass spectrometry device producer. The company uses its own technology to put the analytical power required in such mass spectrometry devices in smaller and more accessible devices, taking them outside the laboratory into the field where they actually are used.

Mass spectrometry devices are used for quick and actionable answers in a wide range of applications such as life science research, yet also applications related to bioprocessing, forensic and other applications. The quicker and greater employment of such devices has many benefits, essentially expanding the range of potential usage cases as well.

Since its initial MX908 product was launched in 2017, it has sold 1,200 devices to some 300 customers in a wide range of industries like pharmaceuticals as well as academic settings. The company claims a significant factor in improvements in terms of speed, size and costs versus its traditional competitors, which is at the heart of the adoption and sales of these devices.

Furthermore, the company markets the Rebel, a smaller desktop analyzer. Since its launch in 2019 just 31 units were sold, yet this is a higher end applications which is used within fixed (laboratory) settings, unlike the MX908 which is active in the field.

Valuation Discussion

The company did end up going public at $20 per share in December, as the sale of 6.25 million shares allowed it to raise $125 million in gross proceeds. With a share count of 26 million shares and a flat net cash position, I pegged

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This article was written by

The Value Investor profile picture
Finding value that gets unlocked in M&A, IPOs and other corporate events
The writer is a long term value investor and M.Sc graduate in Financial Markets with over 10 years experience. Value can be found in both long and short ideas and uses options to enhance the risk-return profile of investment ideas. Disclaimer: This article provides opinions and information, but does not contain recommendations or personal investment advice to any specific person for any particular purpose. Do your own research or obtain suitable personal advice.

Analyst’s Disclosure: I am/we are long MASS. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Long a small position.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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