Nano Dimension Stock Is Making All the Right Moves for Patient Investors

I’ve written about Nano Dimension (NASDAQ:NNDM) stock in the past and how it will test investor’s patience.

3d printer printing chips
Source: shutterstock.com/Alex_Traksel

The company is still in the start-up phase and has no meaningful financial results. In its last earnings, it disclosed revenues of $811,000 and a net loss of -$13.6 million.

“Admittedly, Nano Dimension is a different type of investment, in terms of the ability to understand its breakthroughs and progressions on a monthly and quarterly basis,” said company CEO, Yoav Stern, in that same earnings call.

It is with this view that I am evaluating the latest company developments. The field of 3-D printing is continuing to move forward with scientific advances. Nano Dimensions is leading the way.

Last April, Nano Dimensions acquired NanoFabrica a leader in precise 3-D micro-printing.

I believe this acquisition has the potential to be transformative for Nano Dimensions as it unlocks a lot of market synergies.

While Nano Dimensions DragonFly system is focused on 3-D printing electronics, Nanofabrica is focused on 3-D printing very small parts.

The NanoFabrica 3-D printing machine, Fabrica 2.0, uses semiconductor lithography and advanced optics.

Fabrica 2.0 has a number of sensors allowing for precision movements and nanometer accuracy.

The machine can also adjust its printing speed depending on the fine details required. This allows it to shorten printing time without sacrificing precision when necessary.

Fabrica 2.0 and NNDM Stock

The Fabrica 2.0 is applicable for a wide variety of industries that are looking toward miniaturization in particular medical device manufacturers.

Possible medical applications include microvalves used for controlled drug delivery, micro syringes, and micro implantable or surgical devices.

As with the DragonFly, the Fabrica 2.0 allows for rapid prototyping, short-runs and design creativity.

The company has also made developed its own proprietary materials for the Fabrica 2.0. The most interesting of which is the Performance N-900.

This material is ceramic-based, making it especially useful in the electronics and aerospace industry. Ceramics have unique properties such as durability, heat resistance and electric insulation.

By having its own materials, Nano Dimensions ensures that the 3-D printed products made are of high quality.

Major Collaboration Agreements

Apart from its recent acquisitions, Nano Dimension has been making strides on its own. The company has inked a few key strategic partnerships that could be potentially transformative.

The first of which is a joint venture agreement with Hensoldt AG. This new joint venture will be focused on the development of advanced 3-D printing technologies. It will do that by creating a network of 3-D printing designers and users that will exchange and challenge ideas.

Hensoldt has been using Nano Dimension’s DragonFly to create 3-D printing circuit boards since 2018. So this company is a good ambassador to promote the potential benefits of the DragonFly.

Nano Dimension also announced a two-year collaboration agreement with Fraunhofer IPA. As one of the largest research institutes in Germany, Fraunhofer IPA could be a vital partner for the company.

The institute’s research focus is on technologies for the manufacturing industry. Nano Dimension hopes to learn from the researchers there. The knowledge gleaned will be used to improve the DragonFly system.

Investor Takeaway

It takes an investor with a certain amount of patience to succeed in NNDM stock.

As mentioned, Nano Dimension is not looking at its results on a quarter by quarter basis. Rather they are motivated to advance the field of 3-D printing, expecting profits to follow.

It should then be no surprise that NNDM stock has been trading at a narrow range of $5.50 to $6.80 for the past three months.

The news of these collaborations hasn’t invigorated investors to push NNDM stock above its 200-day moving average of $8.30. Investors in NNDM should not expect quick results in the next few weeks.

However, NNDM stock remains a compelling investment for those with a five to 10 year time horizon.

On the date of publication, Joseph Nograles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joseph Nograles is a part-time freelance copywriter focused on the financial industry. He has worked in a wide variety of industries from tech to consulting with one of the “big four.” He has always enjoyed analyzing businesses and has been a CFA charterholder for nearly a decade now.


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