3D Micro-Cap Printing Stocks: Losses Galore

3-D Micro-Cap Printing Stocks: Losses Galore by David Merkel, CFA of Aleph Blog

Okay, let’s run the promoted stocks scoreboard:

Ticker Date of Article Price @ Article Price @ 12/9/13 Decline Annualized Splits
GTXO 5/27/2008 2.45 0.014 -99.4% -60.9%
BONZ 10/22/2009 0.35 0.001 -99.6% -74.2%
BONU 10/22/2009 0.89 0.001 -99.9% -79.4%
UTOG 3/30/2011 1.55 0.001 -99.9% -93.0%
OBJE 4/29/2011 116.00 0.350 -99.7% -89.1% 1:40
LSTG 10/5/2011 1.12 0.015 -98.7% -86.2%
AERN 10/5/2011 0.0770 0.0001 -99.9% -95.3%
IRYS 3/15/2012 0.261 0.000 -100.0% -100.0% Dead
RCGP 3/22/2012 1.47 0.300 -79.6% -60.4%
STVF 3/28/2012 3.24 0.490 -84.9% -67.1%
CRCL 5/1/2012 2.22 0.028 -98.8% -93.5%
ORYN 5/30/2012 0.93 0.038 -95.9% -87.6%
BRFH 5/30/2012 1.16 0.420 -63.8% -48.6%
LUXR 6/12/2012 1.59 0.015 -99.1% -95.6%
IMSC 7/9/2012 1.5 0.800 -46.7% -35.8%
DIDG 7/18/2012 0.65 0.049 -92.5% -84.4%
GRPH 11/30/2012 0.8715 0.053 -93.9% -93.5%
IMNG 12/4/2012 0.76 0.063 -91.7% -91.4%
ECAU 1/24/2013 1.42 0.330 -76.8% -81.2%
DPHS 6/3/2013 0.59 0.007 -98.8% -100.0%
POLR 6/10/2013 5.75 0.090 -98.4% -100.0%
NORX 6/11/2013 0.91 0.160 -82.4% -97.0%
ARTH 7/11/2013 1.24 0.182 -85.3% -99.0%
NAMG 7/25/2013 0.85 0.785 -7.6% -19.1%
12/9/2013 Median -97.2% -88.4%

Market regularities are heartening.  It’s astounding how regular the losses are from promoted stocks.

3D Micro-Cap Printing Stocks: Losses Galore

On to tonight’s loser-in-waiting, Makism 3D Corp [MDDD].  This is another company with no revenues, has never earned a dime, etc.  It used to be a company that supposedly was trying to improve cellular telephony, but never earned a dime doing so.  So they bought a UK company that was supposedly working on 3D printing, and surrendered the company to them.

It would be incredibly surprising that a company of three people would be able to overthrow the 3D leaders — DDD and SSYS.  They have invested a lot of time, money, and effort to improve 3D printing, and a startup can beat them with less than a million bucks, and less than a year, with a young undifferentiated staff?  I don’t think so.  Or, as an old-style pinball machine might say, “TILT!”

I don’t buy it, and you should not either.  As with all promoted stock scams, the hard part is identifying who benefits.  My guess is affiliates of the guy who wrote the glowing report.  The company has disclaimed any responsibility.

In any case, avoid promoted stocks.  Do your own research, and buy stocks that you find attractive.  Don’t buy anything that another is trying to pitch you.

Two zeroes merge, and should we expect a positive result?  I think not.



About the Author

David Merkel
David J. Merkel, CFA, FSA — 2010-present, I am working on setting up my own equity asset management shop, tentatively called Aleph Investments. It is possible that I might do a joint venture with someone else if we can do more together than separately. From 2008-2010, I was the Chief Economist and Director of Research of Finacorp Securities. I did a many things for Finacorp, mainly research and analysis on a wide variety of fixed income and equity securities, and trading strategies. Until 2007, I was a senior investment analyst at Hovde Capital, responsible for analysis and valuation of investment opportunities for the FIP funds, particularly of companies in the insurance industry. I also managed the internal profit sharing and charitable endowment monies of the firm. From 2003-2007, I was a leading commentator at the investment website RealMoney.com. Back in 2003, after several years of correspondence, James Cramer invited me to write for the site, and I wrote for RealMoney on equity and bond portfolio management, macroeconomics, derivatives, quantitative strategies, insurance issues, corporate governance, etc. My specialty is looking at the interlinkages in the markets in order to understand individual markets better. I no longer contribute to RealMoney; I scaled it back because my work duties have gotten larger, and I began this blog to develop a distinct voice with a wider distribution. After three-plus year of operation, I believe I have achieved that. Prior to joining Hovde in 2003, I managed corporate bonds for Dwight Asset Management. In 1998, I joined the Mount Washington Investment Group as the Mortgage Bond and Asset Liability manager after working with Provident Mutual, AIG and Pacific Standard Life. My background as a life actuary has given me a different perspective on investing. How do you earn money without taking undue risk? How do you convey ideas about investing while showing a proper level of uncertainty on the likelihood of success? How do the various markets fit together, telling us us a broader story than any single piece? These are the themes that I will deal with in this blog. I hold bachelor’s and master’s degrees from Johns Hopkins University. In my spare time, I take care of our eight children with my wonderful wife Ruth.