Voxeljet AG (VJET)
From a price of $34 at the end of October to a high of $70 in November, back to a low of $34 in December, Voxeljet AG (VJET) has been all over the map. Unfortunately, even at the low end of its recent range, Voxeljet is going to have a tough time justifying its recent share price.
Voxeljet makes and sells 3D printers, but the company isn’t relying on sales of printers to be the key driver of revenue and growth going forward. VJET is aiming to become a service provider, printing three-dimensional goods for firms and companies that don’t have their own three-dimensional printer to do the work.
To be fair, the prompt for the run-up was an impressive 77% increase in its third quarter revenue following a couple years’ worth of not-too-shabby growth … not to mention a huge backlog of orders that was actually greater than Q3’s total sales. The price of VJET stock has been rightfully lowered in the meantime, but the stock’s still more of a speculation than an investment. And, priced at 358 times its forward-looking earnings, it’s a speculation with the deck stacked against it.
Throw in the ironic fact that 3D printers have become so affordable that a need for a three-dimensional printing service is now in question, and Voxeljet AG just poses more risk than it’s worth compared to other 3d printing stocks.