If you check out the chart of Voxeljet (VJET), you’ll probably get dizzy. During the past month or so, VJET stock has made huge swings.
The good news: Over the past week, VJET stock has stabilized in the low $40-range.
VJET Stock Drawing in Shorts
There should be no surprise that 3D printing stocks have been red-hot. Every day, there seems to be a new story about a whiz-bang application, such as the “printing” of human organs. But the real opportunity, at least in the near-term, is revolutionizing manufacturing — and this has been a key driver for VJET stock. Voxeljet develops printers for top industrial operators like Daimler (DDAIF), BMW (BAMXY), Ford (F) and 3M (MMM).
Despite this, Voxeljet is still fairly small when compared to other 3D printing stocks, especially operators like DDD and SSYS. In the latest quarter, revenues came to a mere $4.7 million. But that didn’t stop investors from boosting VJET stock to nose-bleed levels. Even after cooling off recently, shares of VJET stock are currently trading at a whopping 33 times revenues.
This has inevitably alerted savvy short sellers. Citron Research, for example, has been finding opportunities with 3D printing stocks. And for VJET stock in particular, a research report warns about mounting competition and the quality of sales. In the third quarter, Voxeljet sold only three printers!
Sure, there is little doubt that there is huge potential for 3D printing stocks. But there are more affordable alternatives than VJET stock, including DDD stock and SSYS stock. Both 3D printing stocks have more scale and liquidity with their shares.
But even DDD and SSYS are like VJET in that those 3D printing stocks are also a bit frothy as well. Perhaps this is why top short sellers are moving into the space aggressively. After all, one of the latest is hedge fun manager Whitney Tilson, who says there are “many unbelievably great shorts among 3D printing stocks.
More on 3D Printing Stocks
- The 5 hottest IPOs of 2013
- 3D printer Voxeljet: A perfectly timed IPO
- 5 amazing 3D printed objects
- Top 3D printing stocks to buy now
Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.