Professional investors and analysts regularly warn against the purchase of penny stocks, donaten the lack of regulation of the the over-the-counter markets. In the post-hype-bubble world that is the current say of 3D printing, investors should pay extra heed to penny stocks that trade on the OTC. After working with tech-investment site Nanalyze on a post regarding Aussie penny stock company 333D Ltd, I’ve kept up with their 3D printing news. And, in a new post, the site has recommended that investors remain away of an OTC company called 3D MakerJet (OTCMKTS: MRJT).
In general, Nanalyze warns heavily against investing in any OTC stock and MRJT is no various. With a site full of high high end renderings, 3D MakerJet claims to be “Committed to Supplying the most Plastic, Medical, Culinary and Powderless Metal 3D Printers in the Industry.” Their site lists a variety of FDM printing devices, with prices as low as $599, that are may already on the market to order, but Nanalyze says that the Nevada-based company, that was previously named “American Business Change Agents”, has only $52,000 of cash on hand and has may already spent $1.2 million. They go onto say that the company’s president, John Crippen, has a background in restaurant management and consulting and that the firm only has two other executives listed.
Additionally, Nanalyze points out that the printing devices 3D MakerJet retails are the same machines being sold by a Chinese company called Zbot, that 3D MakerJet lists as their R&D partner with whom they say they are “working on a metal 3D printing device prototype for weight production based on proprietary innovation shared between both companies.” Other products they claim to be developing are a “Large/Human Scanner” and a “Candy Printer”.
Nanalyze concludes by saying:
3D MakerJet’s website has an “Investors” page that appears like a fewbody took a whole 2 minutes to put it together. The page contains multiple occurrences of blatant typos that does not donate us much confidence in the message being delivered. 3D Makerjet seems to be nothing additional than an import company selling 3D printing devices created by a few relatively unheard of Chinese company. None of what we’ve seen so far makes us want to invest in this company or buy their printing devices. With the industry getting hammered lately, there’s no shortage of bargains to be had, not only in shares of 3D printing stocks, but in addition in the printing devices themselves. There is perfectly
no compelling reason whatsoever to buy shares in 3D Makerjet (OTCMKTS:MRJT) or to buy their printing devices. Don’t set it, only forget it. Buy a diversified portfolio of 3D printing stocks instead. So you can “set it and forget it”.
After researching Australia’s 3D Group/333D Ltd for a few time, it becomes simpler to distinguish dangerous penny stocks of legitimate businesses. Organovo, for instance, began on the pink sheets and later shifted over to the NYSE and their products have been defined in excellent more detail on their site of the beginning. But, if you appear at 3D MakerJet or a company like Changing Technologies, that Andrew Wheeler found to be potentially fraudulent, you can notice that the site contains CAD models of promising technologies with little evidence to back them up. Instead, hype words like “3D printing” are utilized to attract investors unfamiliar with the industry to jump into a stock bubble. Pumping up the price of the stock, the founders of the company can cash out, leaving it to be actually additional worthless for those investors who idea they were buying into a great thing.
How is that various of built, multi-million dollar companies? Well, it shouldn’t be, but there can be deception at all levels of an industry.