Nano Dimension (NNDM)* $7.84
Nano was put on the investment map by Cathie Wood founder of Ark ETF family when she added it to her funds. The “story” is great – futurist 3-D printing company years ahead of the competition in flexible circuit board printing.
The reality is, they have very little in sales with a 2 billion plus market cap. Offsetting this somewhat is a cash balance of $1.5 billion.
This is a change in pace for LOTM, in that we are buying into a momentum story stock on a correction. Personally, I love these kinds of stories however they do carry a different kind of risk in that they are development stage companies and not proven production “real” companies. LOTM defines “real” as a company having revenue and cash flow. We do own mining companies in the “not-real” classification and they are described as Exploration & Development (E&D) companies. So, this is the grouping we place Nano. A $1.5 billion cash balance helps a lot in making us feel better about the “story” around Nano. You can find a lot of background on Nano’s products at their web site linked here.
You probably know our technical process by now.
- Check price Vs various moving averages for support and resistance levels. 50-day and 150-day MA being the major averages. Look for the “dance” between Price and its M.A. partners.
- Check MACD for short term buy or sell signals.
- Check CMF for longer term accumulation or distribution trends.
- We see three recent lows below eight that suggest support is in that area.
- Price is still above its 150-day MA.
We would rate the shares, neutral as to MACD, basing in reference to its CMF and still positive in trading above its 150-day M.A.
No question I am early in buying these shares. The $1.5 billion is not going to sit in cash. One of these days NNDM will make some acquisitions in 3-D printing. In respect to the $1.5 billion NNDM is like a Special Purpose Acquisition Corporation (SPAC) with its own industry leading technology.
Risk Management:
We are a dollar-cost-averaging buyer of NNDM at this price. We would place an upper buy-in limit of $9.25 on the shares. We have no stop loss in mind since we are using a longer-term, dollar-cost-averaging, risk management approach to NNDM stock.
Timing is suitable for short-term traders with a stop loss and longer-term money, using dollar-cost-averaging for position building and looking for a double in price.
Big Short Position:
There is a big-short position in this stock. That always means mischief is afoot. The short position is 30.8% of the float. Shares outstanding is about 45 million shares. Total shares outstanding is 257 million shares.
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* An account related to LOTM holds a position in this security.
Neither LOTM nor Tom Linzmeier is a Registered Investment Advisor.
Please refer to our web site for full disclosure at www.LivingOffTheMarket.com ZTA Capital Group, Inc.
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