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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.

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


  • 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.

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Related Tickers

9/23/2016 4:00 PM
XONE $14.14 Down -0.25 -1.74%
ExOne CAPS Rating: ***