ExOne Dilutes Shareholders: Should You Be Mad?

3-D printing company ExOne (NASDAQ: XONE  ) has announced that it will be issuing an additional 2.6 million shares of common stock. While this could raise around $179 million if sold at the current price, the move increases ExOne's share count by 20%, and the market didn't react positively to this dilution. In this video, Motley Fool industrials analyst Blake Bos tells investors why share dilution is a common risk when investing in very small growth companies, and gives investors the key metrics to watch in order to know whether the cash generated will fuel enough growth to make the stock dilution worthwhile.

With the U.S. relying on the rest of the world for such a large percentage of our goods, many investors are ready for the end of the "made in China" era. Well, it may be here. Read all about the biggest industry disrupters since the personal computer in "3 Stocks to Own for the New Industrial Revolution". Just click here to learn more.



Read/Post Comments (3) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On September 04, 2013, at 7:03 PM, 110254545yy wrote:

    $55

  • Report this Comment On September 05, 2013, at 8:54 AM, rae13164 wrote:

    motley is putting more and more of these onto video, without making them available for those of us who are at work and can't watch a video...please print the text also. other sources are doing the same, but motley is the only one that I send money to!

  • Report this Comment On September 05, 2013, at 10:27 AM, Sprucmoos wrote:

    As best I understand, the company is issuing 1.1 M shares and "selling shareholders" (i.e., insiders) are selling 1.5M shares. So, there is less than 20% dilution but substantial insider selling. To be fair, the company's lock up just ran out, so this is the insiders' first opportunity to cash in on the IPO. This is nonetheless a substantial insider trade.

Add your comment.

DocumentId: 2622275, ~/Articles/ArticleHandler.aspx, 8/1/2014 9:02:05 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 11 hours ago Sponsored by:
DOW 16,563.30 -317.06 0.00%
S&P 500 1,930.67 -39.40 0.00%
NASD 4,369.77 -93.13 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

7/31/2014 3:59 PM
XONE $32.71 Down -4.37 +0.00%
ExOne CAPS Rating: ***

Advertisement