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It’s Time For $NNDM To Shine

I originally posted a DD ON $NNDM back on April 30th. If you had bought Nano Dimension on that day, you'd be up 23% right now. If you would have caught the bottom in Mid-may, you'd be up over 58%.

Here's the same DD, with updated information.

Think you missed it? No. I think this stock has room to run further. Here's why:

Nano Dimension $NNDM

Company Description (From their website)

Nano Dimension Ltd. engages in the provision of intelligent machines for the fabrication of additively manufactured electronics. Its products and services include DragonFly Pro System, conductive and insulating inks for printed electronics, and optimized multi-material design of complex electronics.

Where They Can Sell

In several investor phone calls the past few months by CEO Yoav Stern, he has stated SEVERAL times that the companies deals with companies in the Defense sector. What they produce with these machines (3d printed ELECTRONIC devices) can be used in many various sectors, like defense, medical, aerospace, etc.

In March, a RF circuit board printed by them was sent to the International Space Station.

In May, the company sold one of their machines to the University of Quebec.

Customers

Nano Dimension recently posted their June 2021 Investors Presentation.

Link: https://www.nano-di.com/hubfs/2021-06-09-NNDM%20Corporate%20Presentation-final.pdf

Samsung, Nvidia, Elon Musk's Neuralink to name a few of their customers.

Nano Dimension $NNDM Customers

Cathie Wood

She is obsessed with Nano Dimension. Nano Dimension is in FOUR Ark ETFS. (* as of 6/27/21) Over 16 million shares she owns.

ARKQ (7,644,621 Shares)

ARKW (7,630,616 Shares)

IZRL (733,585 Shares)

PRNT (198,291 Shares)

Revenue

It's a speculative stock as of now, so the numbers are not very pleasing.

In 2020, their total revenue was just $3.4 million, with $48.49 million in losses.

In pre-covid times, 2019, their revenue was $7 million. Flash forward two years, with a bunch of cash on hand (explained below) and hopefully as COVID subsides, I'm expecting to see higher revenues and hopefully in a few years positive earnings.

Most recently, they released Q1 2021 Earnings. They reported revenue of $811,000 in the first quarter and a net loss of $9,314,000.

"Wow they are losing a lot of money!"

–> The Company ended the quarter with a cash and deposits balance of $1,471,014,000 (including short and long-term unrestricted bank deposits) <–

*As stated on their most recent earnings call, no guidance was given*

Cash on hand

Every time the stock spiked, they did an offering. Their most recent offering, on February 16th was for $12.80. And it raised $500 MILLION. As of two weeks ago, they had just about $1.5 BILLION cash on hand. After two acquisitions already (explained below), they have just under $1.4 BILLION

(Yes, that means a bunch of people bought shares at high prices and you can buy it now cheaper then they did)

Yes, stock offerings are not good but Yoav Stern (CEO) made it very clear on the investors phone call they hosted last week that they have enough cash on hand to do what they envision, and no more share offerings will happen.

To put this into perspective, they have $1.4 billion in cash. their market cap as of today is just under 2 billion. Roughly, their current cash values them alone at around $6 a share. This doesn't include patents they own, the newly acquired companies, their technology, and just the valuation itself.

Acquisitions

The company plans to use its money on acquiring companies (No, $NNDM is NOT a SPAC)

So far, they've acquired two companies this year (and these are very tiny acquisitions, bigger ones are expected)

DeepCube (AI Company – their technology will be used in the currently DragonFly Machine) ($70 Million TOTAL – 40 Million Cash / 30 Million Shares)

NanoFabrica (3D Printing – *the company had a investment lead by Microsoft) (~$59 Million TOTAL – ~$27 Million Cash / 32 Million Shares) *The final numbers are not confirmed*

So they've only burned through roughly $70 million. They still have around $1.4 Billion.

Their plan is to acquire companies listed as Type A, Type B, and Type C.

Type A – Existing companies in PCB business. Companies with revenue between 40-150 million!

Type B – Technologies they think their machines need

Type C – Companies that have machines that cater to the same customers that Nano Dimension does. Literally buying their competition and expanding their customer base.

Unusual Option Activity

Specifically, for short term options, there is high open interest on 3 strike call prices.

July 16th Options (*As of 6/27/21) *This stock has had HEAVY volume on $10 July 16th calls almost the entire week of June 21st-25th trading week.

$7.50 – 11,820 Open Interest

$10.00 – 39,978 Open Interest

$12.50 – 18,114 Open Interest

Should also be mentioned the activity on the Puts.

$7.50 PUT – 6,732 Open Interest

Stock Activity

This stock, as well as other growth stocks, seem to be gaining steam again, and momentum looks to be back. Do with that as you please.

Upcoming Catalysts

  • News related to new customers/partnerships/sales, including with their 2 new recently acquired companies, NanoFabrica & DeepCube
  • According to the CEO, they have a NEW DragonFly they are expecting to release in the near-future
  • Any further acquisitions (Already had 2 this year – The CEO on their May earnings call said starting in June they can tour facilities – they couldn't before because of COVID)

Video With More Information

Quick 15 minute video with the CEO, Yoav Stern.

https://www.youtube.com/watch?v=FdE6DoqmeqY

The Negatives

  • The company has a rather high short interest (many websites are giving different numbers, but according to FinViz it is around 38%)
  • The company isn't producing high revenues, and its burning cash

TL;DR – This company has a bunch of cash (1.4 billion), has some futuristic technology, and can literally buy out their competition or buy companies that'll help them (which they are doing)

Position:

820 Shares

Not a financial advisor

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