Next season marks the 20th anniversary of the Premier League. Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video … exposing one of the most shocking events in our country’s history… and the one move every American needs to make today. On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article. Despite the surface-level appeal, you shouldn’t have to settle for Desktop Metal. The point is that Desktop Metal isn’t the right 3D printing company to wager your money on. Yet another lesson is that there can be an expanding industry with some businesses that are financially contracting. Always check the fine print, and don’t just look at a company’s top-line results before making an investment. 30, 2021, Desktop Metal’s net earnings loss ballooned to $169.167 million. 30, 2020, the company posted a $65.027 million net earnings loss. Let’s check Desktop Metal’s bottom-line results. Moreover, this isn’t the company’s only financial red flag. That’s alarming, and it will make it more difficult for Desktop Metal to make investments in machinery or in research and development. Fast-forward to the end of 2021, and the company only had $131.676 million in cash and cash equivalents. Unfortunately, Desktop Metal doesn’t pass muster in this area.Īt the end of 2020, Desktop Metal had $483.525 million in cash and cash equivalents. Don’t let Desktop Metal’s top-line results lure you into assuming that the company is actually in good shape.įor one thing, informed investors must dig deeper and examine the company’s capital holdings. The company might brag about its ability to make sales, but that’s only part of the fiscal picture. Therefore, the company ought to be on solid financial ground, right? Plus, Desktop Metal generated $25.438 million in third-quarter 2021 revenue. After all, the additive manufacturing market is expected to reach $146 billion by 2030. On the surface, it seems like Desktop Metal should be a fundamentally sound company. When the technicals fail, investors have to rely on the fundamentals. Waiting around for Reddit users to resuscitate the stock isn’t a viable investment strategy.Īll that’s left is the value of the company. The technical damage that’s been done to DM stock is extensive, and possible irreparable. This isn’t to suggest that all penny stocks are bad, but the market is sending a clear message to sensible traders: don’t attempt a rescue mission with Desktop Metal. Today it’s a penny stock, which can informally be defined as a stock that trades for less than $5 per share. July was particularly bad, as the stock broke down below the $10 level, which is crucial for SPAC stocks to maintain. They may have targeted Desktop Metal for a short squeeze, but apparently they didn’t stick around to keep the stock afloat.Ĭonsequently, DM stock tanked in February and then entered into a prolonged bear market. This was the hype phase for Desktop Metal, but it wasn’t destined to last forever.Įarly 2021 was a time when Reddit traders and retail investors enthusiastically bought low-priced stocks. Going back to where it all started, Desktop Metal was introduced to the trading public in late 2020 after completing its merger with special purpose acquisition company (SPAC) Trine Acquisition.ĭM stock ran from $10 in 2020’s fourth quarter, to nearly $35 in early February 2021.
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