Innodata Inc (MTLS)

[TheCleos]

Hi Steve. I was concerned you might be getting lonely or you might start thinking you were crazy. How can there be stock like MTLS and nobody is following it? Is MTLS real?

I digress.

I have owned this stock for about a year now. I think it is a fantastic play on industrial 3D printing. I will give you my thoughts. Be interested to hear what you think (or anybody else out there)

1) MTLS has has been a significant player in this space for a long time. They are in fact a major player with broad reach. This gives them lots of advantages over upstarts. I think they were an early partner with HP.

2) MTLS is technology agnostic. They can pick whatever platform they want (Arcam, SLM, etc.) and develop software solutions for those platforms.

3) The software revenue is going to be reoccurring. We all know that software can be hugely profitable. I make a comparison to the computer and computer software industries. Which sector made the most money? It is about the software! I think that could happen in the 3D printer space.

4) They are a manufacturer, so they get to test first hand the software they are developing.

5) I can't of only one other company that is in the space that MTLS is in ... software to enable the industrialization of 3D. There is a French company that does something similiar. Starts with a "D" but i forget the name.

5) Acquisition looks great to me. Seems like tons of synergy. Financing the purchase at an interest rate of 1%. How did they do that?

I know that any investment is risky. But for the life of me I can't think of any that jump out...other than maybe the market might view it as over priced in the short term.

Good luck to both of us with the earnings call.