Is This Voxeljet AG's Dead Cat Bounce?

Updated
Is This Voxeljet AG's Dead Cat Bounce?

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of voxeljet AG jumped as much as 12% today after falling up to 45% for the week. Is this a sustainable bump or just a dead cat bounce?

So what: There was a lack of market moving news out today but the sharp decline in voxeljet's shares are enough to bring in some buyers. Remember that it was only a week ago that shares popped after a pretty decent earnings report.


Let's put all of these pops an plunges into some perspective. Voxeljet's management expects about 11 million euros, or about $14.9 million in revenue for all of 2013. In the fourth quarter, it expects to ship four -- yes FOUR -- 3-D printers and only has seven total in its backlog.

This is what investors are getting for buying a company that currently has a market cap of $548 million.

Now what: Today looks like nothing more than a dead cat bounce to me, or a short-term jump in a stock that's headed south over the long term. Voxeljet has a lot to prove before it will be worth its current market cap and has a lot of competition along the way. I think investors got ahead of themselves buying into the 3-D printing craze and would be wise to wait for leaders to emerge before betting on a high risk stock like voxeljet.

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The article Is This Voxeljet AG's Dead Cat Bounce? originally appeared on Fool.com.

Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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