There was (and still is) very little question in my mind that Arcam was going to do extremely well in the 3D market ... with or without GE.
To me the current risk has a lot less to do with whether or not EBM has traction in the market or whether 3D is going be as big as folks think. Rather, in my mind the risk we face - as retail investors - has to do with - to what extent will Arcam's Board/Management respect the interests of retail investors.
Will GE "hide" Arcam successes and profits inside GE's other financial reports such that there is no reason for the stock to appreciate in a way that reflects Arcam's/EBM true success in the market.
I am hoping that Eliot will help to keep GE honest and Arcam transparent. I also believe that there may be some reasons GE might want to keep Arcam independent and successful.
- Better able to compete to retain key employees. If you are an Arcam employee and you think EBM is going to take off, would you rather have Arcam stock options or GE options.
- Easier to be eligible for government sponsored studies/investment. It might be harder for the EU to justify funding for EBM studies if Arcam is wholly owned by GE.
- For companies that see EBM as important to their future, these companies might prefer to see Arcam as quasi-independent .. just so they can keep a better eye on the technology. Arcam's current "independent" status might make (companies and government agencies) more comfortable vs. an Arcam wholly owned by GE. Wholly owned, there would be less need and reason for transparency around the technology as it develops.
- If Arcam remains independent and if it does not get "lost" in GE, then Jeff Imelt will get full recognition for making a great acquisition. The move by GE back into focussing on making things is a huge thing for them and 3D is a big part of that. If Arcam gets lost in GE, then maybe the benefits of Arcam won't seem so obvious. Not as great looking on the resume.
A lot of conjecture here. I may think differently tomorrow. But I think these considerations might be relevant to help build the case to stick with Arcam.
AI
