Arcam AB fka AMAVF

[charlie T colton]

(b)Hold (wait for sensible price) and (c)Buy (bound 2appreciate)

Appologize for the abbreviation - sometimes I prefer to show the whole message in the title.

What should we private investors do? I'm with you on holding and think that buying is also a good move right now. I'm not suggesting that any newcomers should jump in and bet their houses but see little downside risk for anyone that already has had a sizable position. As I see it, the downside risk is the loss of some bragging rights if the share price doesn't increase. Big deal, I'm way ahead right now and will be whatever the final outcome turns out to be.

GE must have known that their bid would probably fail to reach 90% support. Why did they bid then?
If they have 10% then no-one else's bid will win and so GE can deal with Arcam like all other customers (and not be shut out). If they reach higher percentages as Charlie's post earlier then that gives them more clout and privileges.
So GE's bid is to protect their major move into 3D. It has already achieved that.

I agree with everything you've said and can offer one more explanation why GE might be satisfied with their 14.8% position for now. The Arcam and SLM Solutions purchase is getting some expected resistance from the conservative GE shareholders that don't see additive manufacturing as that big a deal. Many are viewing these attempted purchases using conventional financial metrics.

GE's Intended Acquisition Of 3-D Printing Companies: Financial Negatives May Outweigh Strategic Benefits - Sep. 16, 2016

It is sound on strategic grounds, but the purchase price is heavy relative to the assets acquired. Arcam and SLM both trade at 9x revenue and offer a 40% premium to pre-announcement share prices.

Moreover, there are concerns regarding the company squeezing its free cash flow due to the additional need to pair manufacturing advances in Aviation with a robust commercial operation in addition to the capital spending needs in other parts of the business.


"the purchase price is heavy relative to the assets acquired" ? What they don't see is that the intellectual property alone has more value to GE's future than the physical assets and current infrastructure.

"there are concerns regarding the company squeezing its free cash flow" ? General Electric has $100 Billion in the bank and they're concerned about this deal that's "sound on strategic grounds" ?

Jeff Immelt and Dave Joyce understand what the technology has to offer. They have the money and time to wait for their shareholders to come to the realization that "hey, this stuff works AND we're really making money with it." They're already way ahead of their competitors and they have the luxury of having the money and the time to move at a pace that will make their investors happy.



All the talk about industry 4.0 is interesting but my focus is on ARCM and AMAVF. It's here. It's now. It's what's in my portfolio. I'll work on my vision once we see this through. Truly, no offense intended.