Key insights
- The author highlights Nano Dimensions, a 3D printing company, trading below its net cash value. The author questions why an arbitrage opportunity through acquisition and liquidation hasn't materialized. While seemingly undervalued, the market may be factoring in concerns about future cash burn, management decisions, or other intangible risks, making this a potentially risky investment.
I came across Nano Dimensions today. They are an unprofitable 3d printing manufacturer.
The interesting part is that the company is .7x undervalued based on their cash reserves.
Net cash (cash - debt) is $425 million
Market cap is $374 million
So the company, all its revenue and IP is somehow worth negative
$50 million? Why wouldn't some firm try to buy up a controlling interest and just liquidate them to shareholders for an immediate arbitrage? Trading at $1.80 end cash value in reserve is $2.21 a share.
Has anyone seen this before and how did it play out? Is this actionable in any way, or just file it under "interesting yet useless" info?
Thank you in advance!