2 Reasons to Avoid Voxeljet AG (ADR)

Hands down, voxeljet (NYSE: VJET  ) is the most expensive 3-D printing stock around. At current levels, this industrial 3-D printing company is trading at around 25 times 2014 expected sales -- well above its peers. However, price isn't the only issue with voxeljet.

Recently, the company burned through about $13.7 million, or 20% of its IPO proceeds, to purchase its German headquarters and expand the service center on site. In the year prior, the company spent roughly $400,000 renting the same property. This could be a huge warning sign that management doesn't know how to efficiently deploy capital, which could lead to non-accretive equity raises down the road. As an investor, a management team that doesn't know how to effectively deploy capital is probably best to be avoided.

In the following video, 3-D printing analyst Steve Heller makes a case for why voxeljet shouldn't be part of your portfolio.

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  • Report this Comment On December 26, 2013, at 12:58 PM, temenem wrote:

    Old news. At $70 yes, at $40 no.

  • Report this Comment On December 26, 2013, at 3:16 PM, Linh27 wrote:

    wow the same article 17 days later.

    http://www.fool.com/investing/general/2013/12/09/why-did-vox...

    I remember when Google came out and reading an article on Motley Fool saying how expensive Google IPO at $100 was.

  • Report this Comment On December 26, 2013, at 5:54 PM, CGMI6 wrote:

    Xone did the same thing and nobody said a word. Oh and by the way, just so you know: the land belonged to the Kent Rockwell, the CEO :)

  • Report this Comment On December 26, 2013, at 10:48 PM, yahoo123 wrote:

    Steve Heller you talk well but try something else. 3D printers are unstoppable now.

  • Report this Comment On December 27, 2013, at 10:46 AM, GMGAsset wrote:

    The author's statement about 'burning through cash' shows utter inexperience of a novice. The company didn't burn through cash by buying real estate, they transformed one part of their balance sheet to another; cash to real estate. Burning through cash, is removing cash from the balance sheet, and expensing it through the income statement. If the company does no business whatsoever, then the equity holders at least still own the real estate. Secondly, However, their plans for the balance of their ipo proceeds are to generate revenues, and it's far to early to tell at what lever they'll be successful, other than the growth of overall utilization of 3D printing going forward.

  • Report this Comment On December 28, 2013, at 8:43 AM, jester55285 wrote:

    The author is probably shorting Vjet since Vjet and Xone is targeting the same aerospace market. I'm keeping an eye on vjet and amavf.

  • Report this Comment On December 31, 2013, at 8:32 AM, temenem wrote:
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