Wednesday, December 11, 2013

Makism 3D (MDDD) Is Making . . . No Income

Andy Chambers (whose website I cannot locate) sent me a pump mailer about Makism 3D Corp. (MDDD) and its 3D printers.  Wanna see the fancy mailer before I throw it out?  Okay, here it is below.

Wow, look at all the pretty colors.  It's too bad this promoted company's performance isn't as pretty as all of those pictures.  Read their 10-Q dated November 14, 2013.  They started out offering performance management tech to cellular operators until they merged with Umicron of the UK.  Hey, "Umicron" sounds like the name of a Transformer robot.  This company sure transformed, but they have yet to transform their 3D printers into products that sell.  Their zero cash and negative working capital moved them to accept a SEPA, a.k.a. an equity credit line.  I don't like companies that get involved with those instruments because without very tight covenants in place a large investor can cram a share price down to zero and force an acquisition.

The management team has little obvious experience in small-run manufacturing.  Their Wideboy product isn't even available yet.  The company itself notes that the OTC Markets Group has placed a trading advisory on its ticker symbol.  They further note that they are still negotiating for components and plan to relocate.  So, to recap, they have no product, no components, and no revenue.

This stock has an average daily trading volume in the millions.  The information above is publicly available and yet the stock is heavily traded.  The human race is really funny that way.  The 3D printing revolution has barely begun to hit the mass market.  It's too bad Makism 3D is so far behind.

Full disclosure:  No position in MDDD, ever.