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Is 3D manufacturing in the too hard basket?

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Question asked 18/12/2021

Is 3D manufacturing in the too hard basket?

Hi James/Harry, I hold some AML3D shares and, as a consequence, been looking at 3D manufacturing companies and noticed they all seem to be struggling across the board for some reason. With (approx.) 12 month losses as follows: AML3D -77%;Titomic -65%;Amaero -61%;3D Metalforge -68%;Desktop Metal (US) -81%, one exception is Aurora, which is +25% but also sharply down more recently. Have you got any insight or opinion as to why 3D manufacturing seems to be indiscriminately out of favour? Many thanks, Nick

Answer

Hi Nick,

This reminds me a little of the BNPL space, i.e. it was a hot sector which led to greater competition before the companies were profitable. 3D manufacturing is simply a new industry that’s struggling to convince investors which if any of the current crop of businesses can turn their fun technology into viable / profitable businesses in the years ahead. This is one party you may have joined at the wrong time, I would rather buy one of these names at higher levels after its had delivered some positive commercial news.

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LAST UPDATED 18/12/2021 07:19

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