I'd be careful of too much hype -- sure this writer is short himself but he's right about the target and makes some valid cautionary points.
On the other hand as evidenced on this board sentiment is HIGH anyway and PM bids are higher than the close but will Wed. be the last day?
Camtek Significantly Overvalued Due To Hype, Has $2.50 Price Target
Dec 3 2013, 12:33 | about: CAMT
BOOKMARK / READ LATER
Disclosure: I am short CAMT. (More...)
The share price of Camtek Ltd. (CAMT) has been fueled in recent days by what appears to be a distortion of the facts on various social network platforms. Specifically, CAMT is being misrepresented as a manufacturer of 3D printed circuit boards (PCBs).
This has resulted in CAMT being hyped as the next undervalued 3D printing stock. 3D Analytics has completed a thorough review of CAMT and determined the stock is grossly overvalued. Consequently, we're assigning a sell rating on the stock with a $2.50 price target.
3D printing, according to Wikipedia, "is a process of making a three-dimensional solid object of virtually any shape from a digital model. 3D printing is achieved using an additive process, where successive layers of material are laid down in different shapes. 3D printing is also considered distinct from traditional machining techniques, which mostly rely on the removal of material by methods such as cutting or drilling (subtractive processes)."
In 2009, Camtek acquired Printar Ltd. According to a news release announcing the acquisition, "Printar Ltd. is engaged in manufacturing, sale and marketing of direct digital material deposition systems and inks for the Printed Circuit Board ("PCB") industry, with two major fields of activity: Solder Mask, an epoxy layer selectively covering the PCB, while leaving the connecting pads uncovered ("SM") and Legend, applying the identification nomenclature on the PCB, commonly used in the PCB industry ("Legend")." Printar Ltd. is the company that developed the GreenJet product in 2007.
Solder mask, according to Wikipedia, "is a thin lacquer-like layer of polymer that is usually applied to the copper traces of a printed circuit board for protection against oxidation and to prevent solder bridges from forming between closely spaced solder pads." Here is a video that shows the conventional process for applying the solder mask to a PCB. Current solder mask systems coat the entire board (using a conformal process) with a blanket of ink. After the solder mask is applied, the extraneous material is removed. By contrast, GreenJet selectively applies the solder mask to the PCB and non-functional areas are not coated.
Dymax, according to its website, is "a world-class leading manufacturer of 100% solvent-free UV light-curing industrial adhesives and light-curing systems for the medical, electronic, optical, glass, plastic, metal, masking, and packaging OEM markets worldwide." Dymax has created light-cure conformal coatings to meet the demands for the changing PCB market. Dymax states on its site that "each year the electronics industry is faced with new product designs that call for smaller printed circuit boards to function in more aggressive and rigorous service environments. As demands change, conformal coating is becoming increasingly adopted to ensure PCB reliability in environments where moisture, condensation, dust, dirt, salts, chemicals, abrasion, thermal shock, mechanical shock, and other factors can all affect circuit performance." With changes to the PCB market trend, we feel the GreenJet value runs the risk of disappointing investors.
GreenJet was developed in 2007, and until recently, the product had been described as a "digital inkjet solder mask deposition system." But in November 2013, both during a conference call and on a Form 6-K, the company described it as a "digital 3D printing system" used for the deposition of solder mask designated for the printed circuit board industry. When contacted about this, Camtek told us that instead of applying the solder mask using conventional methods, GreenJet can "stack multiple layers of solder in three dimensions (3D)," thereby giving the PCB manufacturer the option to apply a thicker or thinner coat of solder anywhere on the panel. For better examples of true 3D printing, one need look no further than products developed by companies such as 3D Systems (DDD), Stratasys (SSYS), and Optomec. True 3D printing can create a 3D object of any shape, whereas GreenJet controls the thickness of solder by stacking multiple layers. Using "3D" for a product/description is nothing more than the latest fad to get others more excited about this product.
3DPrintingStocks.com
Gary Anderson is the author for 3DPrintingStocks.com. On Nov. 7, 2013, CAMT released Q3 earnings and held a conference call. During the conference call, Camtek CEO Roy Porat said the company plans to launch the new "3D inkjet solder mask printer [GreenJet] next year." After the release, the stock had no reaction to earnings or the GreenJet product launch. It wasn't until 15 days later that Anderson highlighted CAMT as the next undervalued 3D printing stock, causing the stock to spike up more than 330% over three days on record volume.
OVERALL SHORT INTEREST SHOWING AS EXCEPTIONALLY LOW:
Wednesday December 4, 2013 20 Min Delayed
Short Quote™
Enter Symbol:
Camtek Incorporated
$ 4.58
CAMT
-1.17
Daily Short Sale Volume
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Short Interest (Shares Short)
16,600
Days To Cover (Short Interest Ratio)
1.4
Short Percent of Float
0.15 %
Short Interest - Prior
19,900
Short % Increase / Decrease
-16.58
Daily Naked Short Selling List
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Short Squeeze Ranking™
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% From 52-Wk High ($ 6.43 )
-28.77%
% From 52-Wk Low ($ 1.31 )
249.62%
% From 200-Day MA ($ 1.90 )
141.05%
% From 50-Day MA ($ 2.16 )
112.04%
Price % Change (52-Week)
222.54%
Shares Float
11,030,000
% Owned by Insiders
5.63%
% Owned by Institutions
3.30%
Market Cap.
$ 137,000,000
Trading Volume - Today
8,570,928
Trading Volume - Average
12,000
Trading Volume - Today vs. Average
71424.40%
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