What Not to Expect From Arcam AB ORD in 2014

Being the best performing 3-D printing stock of 2013, Arcam (NASDAQOTH: AMAVF  ) certainly has some big shoes to fill. With the stock having rocketed well over 400% year to date, investors have high hopes that its proprietary electron beam melting, or EBM, 3-D printing technology will prove to be a long-term winner.

EBM certainly holds promise because it can create faster and cheaper parts than selective laser sintering, or SLS, a competing and equally specialized 3-D printing technology. However, EBM produced parts come at the expense of intricate details, an area where SLS excels. In other words, EBM is realistically years away from competing with SLS on a more level playing field.

Taking this into account, and the fact that Arcam's stock has performed so well in 2013, it's probably best for Arcam investors to temper their expectations in 2014. In the following video, 3-D printing analyst Steve Heller sheds more light on this subject and discusses why investors shouldn't be banking on another monster year.

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  • Report this Comment On January 24, 2014, at 7:09 AM, dharthoorn wrote:

    You are assuming that all businesses/industries' primary concern is the ability for the technology to replicate intricate details. While that may hold true for a number of industries (i.e. custom prosthetics) I think it is inaccurate to suggest that this is the primary concern of all industries out there. The automotive and aerospace industry, for one, would likely mainly be interested in fast and cost effective designs for the majority of their parts. In that respect, EBM can compete very effectively, if not outright defeat the competetition.

    Additionally, as far as I understand the technologies based on what I find on the web & wiki EBM and SLS may not even be competing on the same fields. A simple google search on "sls vs ebm" will yield enough studies and nitty gritty details on both technologies to illustrate that while they do overlap, they more than likely will co-exist in the foreseeable future,.

    There are still a lot important questions to be answered over the coming decade. Marketing-wise it will be interesting to see which companies will successfully reel in the big industries and which will be dominating the home audience? Between the 3 dominating companies of this moment -Arcam, 3D Systems and Stratasys- Arcam is the only one sporting well patented EBM technology. My prediction is that EBM will dominate the major manufacturing market in the coming 5 years while SLS will dominate the high-tech industrial and pharma/prostectics market and home user 3D printing. And no, other than my instincts and the above I have nothing else to support those claims.

    Even after the 21/01/14 4:1 split, I'm putting a 800-1200 SEK pricetag on Arcam come end 2014.

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