Stock Market Today: Why voxeljet and IMAX are on the Move

What you need to know about today's stock market.

Apr 8, 2014 at 9:00AM

The Dow Jones Industrial Average (DJINDICES:^DJI) has gained a modest six points in pre-market trading, suggesting a flat start to the stock market today. Stocks are down slightly at the kick-off of the first-quarter earnings season: the Dow is 2% lower so far in 2014, while the Nasdaq has had a rougher start, dropping by 2.3%.


Look for those numbers to start swinging as Alcoa (NYSE:AA) unofficially begins earnings season this afternoon. Analysts expect the former Dow component to post a 5% sales decline, to $5.55 billion, for the first quarter. Profit should come in at $0.05 a share, about half what the aluminum giant posted last year. Investors will focus on Alcoa's outlook for the full year, which could see a boost from increased aluminum demand in the auto industry as Ford and other car makers ramp up their use of the metal in new models. Look for Alcoa's report to come out shortly after 4 p.m. EDT.

Meanwhile, news is breaking this morning on several stocks that could see heavy trading in today's session, including voxeljet (NYSE:VJET) and IMAX (NYSE:IMAX).

Voxeljet shares were down 3.4% in pre-market trading after the 3-D printing company announced a large secondary stock offering. Voxeljet aims to raise $70 million through the issuing of additional shares, which works out to roughly 20% of the company's current market capitalization. For reference, voxeljet only carried $46 million in cash on its books as of the end of last year. The company said the extra $70 million will be used to fund research and development and to expand its service centers around the world. Still, shareholders are suffering a huge dilution of their ownership stake in exchange for a stronger balance sheet.

IMAX said today that it has sold 20% of its China business to a locally managed investment fund. But the sale wasn't done for the $80 million in cash that IMAX will gain from the deal. Instead, having Chinese ownership should allow IMAX to eventually list that business in an initial public offering, which will help fund its aggressive expansion plans in the country. Big-budget films are performing very well in China lately, and while IMAX has doubled its screen count in the country to 173 theaters since 2011, today's move only makes it more likely that that screen count will jump over the coming years. IMAX's stock was up 1.8% in pre-market trading.

More on 3-D Printing
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Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool recommends Ford and Imax. The Motley Fool owns shares of Ford and Imax. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

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That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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