An article titled "The ExOne Company: Irrational exuberance obscures black clouds building around 3-D printing" was published yesterday on the Street Sweeper. Sonya Colberg, Senior Investigative Reporter states a recent the ExOne Company's (NASDAQ: XONE) surprise stock offering irritated investors.
The chief executive and his interests get far more money under this deal than the company itself.
It's roughly $100 million for him versus $72 million for the company. That's 1.55 million shares and 1.1 million shares respectively at the $65 per share listed in the filing. The registration papers specify the shares will be offered by the company and by "selling stockholders." A dig through the gibberish reveals those "selling stockholders" are actually CEO Kent Rockwell - through his two entities and trust.
Investors have been buying ExOne since it went public at $18. After six months, the stock price has risen to $71. But the Street Sweeper thinks this price is overvalued. ExOne machines are very expensive at up to $1.4 million, but the company's pokey biggest printer, Max, takes 24 hours to print just one job.
The report cited information from their sources that while visiting ExOne's factory they found out it would take 10 employees six weeks to make just one of these million-dollar machines. "Such a handcrafting feat undoubtedly would be impossible if XONE ever wanted to mass produce the machines. writes Colberg.
The article points out the fact that ExOne sold only four printing machines in the second quarter has raised concerns among some analysts. "It looks like ExOne is facing the monumental task of selling roughly 18 to 20 machines the next six months in order to hit the minimum 2013 revenue forecast of $48 million."
The article was published yesterday morning and Citron Research immediately tweeted its opinion:
What is this one key component? We don't know yet. But in February 2013 Citron Research released a report, spearheaded by Andrew Left, a California based investor and notable blogger, claiming the technology of 3D printing is being over hyped.
Citron stated although the "…President postures an appeal to voters, demonstrating hope in America by promoting novel ideas before their time. Just because something could change the world in the future does not translate to individual stock movements in the present."
Posted in 3D Printing Company
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Open Source RepRap Supporter wrote at 8/30/2013 8:28:09 PM:
When will everyone learn that one large machine to do everything is NEVER better than lots of smaller machines that can actually do everything.. hence RepRap and Open Source will benefit everyone AND without CEO´s stealing from stockholders in a corrupt corporate world.. have we learned anything from the banking collapse at all?
Marco Valenzuela 3D Artist / Jewelry Designer wrote at 8/29/2013 5:43:16 PM:
I am sure ExOne has more up their sleeve than what might be expected.
JD901 wrote at 8/29/2013 3:52:19 PM:
"To be discussed at a later date" Meh. Sounds like a cheap way to build anticipation.
John Prescott wrote at 8/29/2013 12:11:10 PM:
Sad, that one creepy glutton, in a place of importance, can give the whole industry a bad name!!! Investgate this guy through the SEC & hang his tail up as a warning, so real innovators can show just the true vakue of 3D printing. Don't let one rotten apple ruin his company & the reputation of thousands of caring people. He is a two-timing stock manipulator, tjat's all! Jail him, if he is cheating on the stock price, as well. But you know that won't happen.