Nano Dimension (NASDAQ:NNDM) may be best-known as a meme stock. Starting last September, retail investors on Reddit chatted up NNDM stock as the next big thing. They drove its value from the $1.50 level in mid-September 2020 to a peak of over $17.50 in February. That’s a gain of well over 1,000% in some six months. Following a correction everyone knew was coming, though, shares are now trading for around $6. They’re worth less than they were at the start of 2021.
For many meme stocks, that’s it. We’ve seen the super spike and the inevitable crash time and time again — show’s over, time to move on. However, the Nano Dimension story might be worth looking at more closely.
This is a company that has real long-term potential. It’s focused on industrial 3D-printing technology. That’s a sector that’s not so crowded — and it’s starting to take off. Plus, this Portfolio Grader “B” rated stock is extremely well-funded. Sure, it’s not exactly without risk and rapid fluctuation in share prices could return, at least in the short term. But NNDM is still definitely worth looking at.
NNDM Stock: 3D Printing Is a High-Growth Industry
So, what exactly is this industrial 3D-printing sector that Nano Dimension is involved in? There are actually multiple aspects to the business behind NNDM stock.
This company’s DragonFly is an LDM (lights-out digital manufacturing) system. DragonFly uses precision nano inkjet deposition technology to print electronic circuits. Nano Dimension also offers NaNoS, a 3D fabrication service.
NNDM’s printing services are used by customers in a wide range of industries, including research, defense, aerospace, medical and automotive. To that point, Dartmouth University professor Richard D’Aveni recently explained one of the big advantages for companies that adopt 3D printing solutions:
“A company can make many different products and switch over between products relatively quickly. There’s no retooling. You don’t have to make dyes that take three months or molds that cost $150,000. You simply download a different file, and it prints out a new product.”
Clearly, then, 3D printing is a high-growth market that’s will only see more adoption in the future. Fortune Business Insights pegs it at being worth $51.77 billion by 2026, at a compound annual growth rate (CAGR) of 25.8%.
Making Acquisitions and Meme-Stock Status
Of course, there’s more reason to like NNDM stock other than the fact its industry is gaining momentum. Nano Dimension is also interesting because it’s actively growing its addressable market through acquisitions.
Back in April, NNDM paid $50 million for NanoFabrica, a “world leader in technology and turn-key systems for precise 3D-micro-printing.” That same month, it also bought DeepCube, a company specializing in machine learning and deep learning. Lastly, in July, Nano Dimension announced a joint venture with Hensoldt AG.
In other words, Nano Dimension isn’t sitting still. The company is putting the pieces in place to ensure it remains on the cutting edge of industrial 3D-printing technology.
Acquisitions aside, however, the factor that turns many potential investors off of NNDM stock is its infamy as a meme stock. Sure, there are meme stocks that are essentially worthless shells. But then there are ones that are actually viable companies that get caught up on the Reddit treadmill and see their valuation temporarily skyrocket.
Nano Dimension is in this latter category. If volatility isn’t your thing, then it’s probably best to keep your distance for now. In the short term, it’s entirely possible that NNDM gets caught in the meme machine again. That being said, if you’re in it for the long-term — and you’re not an overly nervous investor — then the prospect of another rollercoaster shouldn’t be a major concern.
Bottom Line on NNDM Stock
This company has a sizeable stash of cash available. In its Q2 results, Nano Dimension called attention to the impressive $1.397 billion it holds in financial reserves. The company says that’s enough to to keep it going for five to six years “with proper qualifiable, quantifiable and measurable milestones and gateways.”
Nano Dimension hasn’t lived up to the expectations that saw NNDM stock trading for over $80 back in 2016. It has also suffered to a certain extent by being tainted with the meme-stock brush. However, the company is making big moves in a sector that’s experiencing rapid growth — and it’s projected to keep doing so for years.
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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. The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
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