If you’re in the market for an up-and-comer in an emerging tech niche segment with hyper-growth potential, you really ought to consider Nano Dimension (NASDAQ:NNDM). It’s an Israeli 3D technology firm and for the time being, NNDM stock is still quite affordable.
It might not be as affordable a year from now, or even a few months from now. We’ll examine the stock’s price action, but suffice it to say that the overall trajectory is clearly to the upside.
As for the company itself, Nano Dimension should be viewed as a 3D printing start-up that’s aggressively advancing the currently available technology, while also maintaining a solid capital position.
And perhaps best of all, you don’t have to understand all of the complex science behind 3D printing technology to appreciate the value proposition of NNDM stock.
A Closer Look at NNDM Stock
In early 2020, it was a struggle just for the bulls to get the Nano Dimension share price above $1.
A stock-price spike in May seemed to solve that problem as NNDM stock quickly popped to $3.40. Unfortunately, that spike didn’t last as the share price declined to the $1.50 area in September.
Yet, that wasn’t the end of the story – not even close. There’s an old saying that goes, “Be right and sit tight.” This strategy certainly worked out well for Nano Dimension shareholders in late 2020 and early 2021.
Amazingly, by the end of 2020, the bulls managed to push NNDM stock above $9. Then, on Feb. 9, 2021, the stock reached a 52-week high of $17.89.
Granted, a share-price retracement occurred after that, with the stock landing at $11.31 on March 12.
Nevertheless, the longer-term trend remains to the upside. Hence, the “be right and sit tight” policy could still be the right strategy.
A Market Worth Pursuing
It’s been said that a picture is worth a thousand words.
If you’re considering investing in Nano Dimension, I would invite you to check out the company’s investor presentation. While you’re there, you can observe the super-cool pictures of Nano Dimension’s 3D printing technology systems.
But of course, an informed investor will need more than cool graphics. Without a doubt, you’ll want some assurance that you’re investing in a future-proofed market.
Nano Dimension’s got that covered with a handful of figures. Admittedly, some of the numbers might conflict with each other. Still, they clearly suggest a rapidly expanding industry:
- The total 3D printed electronics market will be worth $2.3 billion by 2029.
- The global 3D printed electronics market “is expected to expand at a CAGR of 44.46% from 2018 to 2026, reaching $ 3,915.0 million by the end of the forecast period.”
- Moreover, the 3D printed electronics market size is “expected to reach $592 million in 2021 and up to $2.4 billion by 2025.”
Out of those, I’ll let you pick out whichever statistic you like the best. The point here is that NNDM stock seems poised to grow along with a niche market that’s clearly in expansion mode.
I’m not even going to attempt to deconstruct Nano Dimension’s “additively manufactured electronics.” Nor will I try to explain the company’s artificial-intelligence-powered DragonFly 3D printing system.
Again, I’ll refer you back to the investor presentation for the finer points of the science behind Nano Dimension’s awesome 3D printing technology.
What I will say is that the DragonFly system effectively replaces an entire room’s worth of equipment with a much smaller and more efficient box-like machine.
And, that’s about as scientific as I’m going to get today. So now, let’s turn to the company’s financials, which appear to be in good condition.
A recent update from Nano Dimension Chief Financial Officer Yael Sandler should quell the skeptics’ concerns on that front.
“We ended 2020 with a strong balance sheet and $671 million in cash and bank deposits, thanks to the equity offerings we concluded during the year,” Sandler said. “And we have strengthened it even more to a balance of nearly $1.5 billion as of the end of February 2021.”
Moreover, Nano Dimension generated revenues of $3.4 million in 2020. That’s impressive for a small company that’s addressing a still-emerging product category.
The Bottom Line
All in all, an investment in Nano Dimension represents a ground-floor opportunity in a potentially hyper-growth industry.
It’s perfectly okay if you’re not conversant with the nuances of 3D printing technology. I’m not an expert at it, either.
The important thing is to believe in the future of 3D printing. Acknowledging Nano Dimension’s ambitious pursuit of that market, moreover, should justify a position in NNDM stock.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article.