Arcam AB fka AMAVF

[mauser96]

http://www.ft.com/intl/cms/s/925e49e0-7ce6-11e4-b944-00144feabdc0,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F3%2F925e49e0-7ce6-11e4-b944-00144feabdc0.html%3Fsiteedition%3Dintl&siteedition=intl&_i_referer=http%3A%2F%2Fboards.fool.com%2Fdid-business-insider-kill-3dp-investing-31571716.aspx#axzz3OFPWu7fM



3D printers still not printing money

The "low barriers to entry" of plastic 3DP certainly does not apply to EBM, or even laser metal printing . But Arcam takes a hit anyway.

Either I am missing something here or we are seeing a great example of market inneficiency. Because Arcam is printing money.

Perhaps what we are seeing here is how much the sector can effect the individual stocks in that sector. It has long been known that individual stock picking is less important than sector picking, which in turn is less important than determining the general market direction.

Institutions often sector pick because they are too big to invest in smaller companies without driving their price up. But these industry cycles fluctuate, 3DP will eventually become fashionable again.
Arcam is my highest conviction stock. Still it is painful to see AMAVF going nowhere but down in a roaring bull market. The P/E is now getting close to reasonable if not cheap.
It will be interesting to see if the lows near present levels hold. I am invested up to my prudent limit now. If prices fall substantially and the good fundamental news hold them I can buy more.
At this point EBM is making mission critical parts, and while price of these parts may be important, quality and durability is probably more so.