• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Technology

Voxeljet Still in the 3-D Printing Mix

The company could be an acquisition target.
By TONI TURNER Jan 03, 2014 | 09:00 AM EST
Stocks quotes in this article: VJET, XONE, DDD, SSYS

Voxeljet (VJET) was one of the few IPOs I snatched up soon after its shares went public a couple of months ago. The company focuses on industrial 3-D printing, which is an area that has garnered a great deal of interest recently. My goal at the time was to catch some quick returns on the shorter time frames.

I was out of most of my shares when the stock began to exhibit trend exhaustion in mid-November after establishing three waves of buying on the daily time frame. It then had three smaller waves within the larger third leg as shown on the 90-minute chart below. Nevertheless, the German-based company remained on my radar due to the smooth trends it has had on the 90-minute and daily time frames, making it ideal for swing traders who hold a few days to a few weeks at a time.

As we head into next week, Voxeljet is once again at a pivotal price point on the 90 minute and daily time frames. After exhausting its uptrend in mid-November, Voxeljet's shares were hammered. Short interest soared and its stock price returned to the congestion zone that had developed days after its initial offering.

The first daily low on the selloff hit on November 21, followed by a second retest of the support on December 18. From a technical standpoint, Voxeljet's trend development has been nearly textbook perfect. After a strong bounce off the November 21 low, Voxeljet went in for a retest of lows, but at a more gradual pace.  This second selloff consisted to two waves of selling on the 90 minute time frame into December 10, followed by an even more gradual third push lower into December 18. The slowing momentum into price support allowed Voxeljet to recover more than 10 points off last month's lows before striking daily resistance once again this week.

Here is where things get interesting again. The rally over the past several weeks has had two waves of upside. These are labeled A and B on the 90 minute time frame. These moves are nearly identical in terms of price and momentum. This indicates intraday exhaustion on the upswing as we head into the weekend.

Now, since this is also the second swing to the upside off the $35 zone lows since the November meltdown, it also indicates the potential that a break lower on the 90 minute charts can easily lead to another swing to the downside on the daily time frame as well.

However, the extreme move lower in mid-November, coupled with the larger price support and nature of IPOs themselves makes it likely that a daily breakdown attempt will lack strong momentum. Instead, there is a greater chance that such a move can actually create a stronger buying opportunity, particularly if a move lower on the daily time frame displays a great deal of price overlap from one day to the next and yet still manages to take out the December low.  Should this scenario play out as shown on the daily chart, I would expect a trigger near the end of January or early February.

While the above scenario is a very common one given the current daily and intraday price development in Voxeljet, Thursday's volume has caught my attention. The volume was as high as it had been in the first week following the IPO and in early November when it broke through its first zone of daily congestion.

 In the first buy scenario that would play out in a few weeks, volume typically remains on the lighter side during second daily rally (marked as B). Thursday's increase in volume suggests that Voxeljet may not follow this path and could instead begin to move once again to the upside without the additional daily pullback. However, this would be a bigger gamble for the shorter-term bulls. It would require more aggressive risk management due the increased risk of intraday bull traps whereby the stock may break out of a congestion zone on the 30-90 minute time frames, and then still pull back on the daily charts.

Although many argue that the glory days of 3-D printing stocks are behind us, I do not believe this to be the case. I am interested solely in the upside potential in Voxeljet at this point, whether than means a more aggressive stance now, or waiting for another opportunity later in the month. The overall industry is projected to grow 20 to 30% over the next five years and Voxeljet is well-positioned to take advantage of this growth.

One concern for fundamental investors is the fact that Voxeljet is currently trading at approximately 25x its 2014 anticipated sales. This does price it above many of its competition. Unlike many of its competitors, however, its printers can handle both metal and plastic printing. Most companies focus on one or the other.

For example, ExOne (XONE) is its primary competitor for metal casting, while 3D Systems (DDD) and Stratasys (SSYS) are its publicly traded competitors on the plastics side. This makes Voxeljet a candidate for a buyout by 3D Systems or Stratasys since both companies have been making fairly aggressive acquisitions to expand their product lines. As such, longer-term investors would benefit from the consolidation even though they may not see an immediate boost in share value if the company is indeed acquired.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

At the time of publication Hansen had no open positions in any stocks mentioned.

TAGS: Investing | U.S. Equity | Technology | Stocks

More from Technology

Atlassian Is Now in the Latter Stages of Its Decline

Bruce Kamich
Jun 24, 2022 12:22 PM EDT

Let's check the charts and indicators.

Wolfspeed Could Start to Run With the Pack

Bruce Kamich
Jun 24, 2022 7:55 AM EDT

Here's how aggressive traders can play this tech stock.

Chinese Tech Company Ximalaya Pulls Planned IPO Yet Again

Alex Frew McMillan
Jun 24, 2022 6:30 AM EDT

Poor market conditions and the uncertain status of Chinese tech listings cause the podcast market leader to put off its Hong Kong IPO.

Will This Year's Energy and Commodity Trades Become Last Year's Tumbling Tech?

Helene Meisler
Jun 24, 2022 6:00 AM EDT

I can't remember the last time anyone asked me about Apple. No one cares.

Remember All the Hype Around Palantir?

Bruce Kamich
Jun 23, 2022 12:52 PM EDT

Here's how the charts look now.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 08:55 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    The 10 personality traits of successful traders an...
  • 12:08 PM EDT STEPHEN GUILFOYLE

    Stocks Under $10

    As a Portfolio Name Agrees to a Merger, Here's Our...
  • 10:44 AM EDT PAUL PRICE

    My Very Best Pick for the Next 12 Months

    American Woodmark . It rarely gets better than th...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login