Makism 3D Corp (OTCBB:MDDD) is as Hesitant as Ever
It’s pretty clear that Makism 3D Corp (OTCBB:MDDD) isn’t the most spectacular stock on the OTC Markets. It started trading less than a month ago and while we’ve seen one or two interesting sessions during which the ticker flew both up and down, the price movement has been unusually steady for a small cap enterprise in the 3D printing industry.
Despite this, MDDD manage to shift 680 thousand shares which resulted in a dollar volume of around $735 thousand during yesterday’s session. The ticker finished the day at $1.07 per share which is the same as the previous close, but it did manage to touch a brief intraday high of $1.30. This, along with the increased interest from investors meant that we had to check what’s going on.
It turns out that the intense trading was caused by a press release that hit the wire half an hour before the opening bell. Through it, MDDD gave their shareholders some more details about the product lineup.
As we mentioned in our previous article, their flagship printer will be called the Wideboy and yesterday we learned that it will have three versions – the standard unit, the Wideboy Pro, and the Wideboy Mega. More details about the specifications can be found in the press release itself, but the most important thing is the deadlines. According to MDDD‘s CEO, Luke Ruffell, the first Wideboys should be available in February 2014 while the Pro and Mega versions are scheduled to hit the shelves in March and April.
That doesn’t sound quite so bad. Shareholders will need to be a bit patient, but after all, we know that the 3D business is quite hot at the moment and industry analyses paint an even brighter picture for the future. So why didn’t MDDD simply skyrocket up the charts?
Well, some of the investors are probably not quite sure if the company has the financial resources to stick to their business plan. Having seen the balance sheet covering the third quarter of 2013, we can see why. Here are the figures:
- cash: $1,789
- total assets: $15,683
- total liabilities: $1,250
- no revenue since inception
- quarterly net loss: $123,098
It’s clear that even if you add the recent private placement, the figures just don’t stack up against MDDD‘s market cap which, at yesterday’s close, stands at around $63 million. Not to mention the fact that, as we noted in our previous coverage, the details of the placement itself are well worth considering.
Another thing that might have stopped the ticker from running up the chart during yesterday’s session is the threat of a paid promotion. The company and the recent changes around it makes the whole set up quite similar to a large part of the current penny stock pumps and that seems to be keeping investors on their toes. Time will tell if MDDD is indeed about to get the same treatment, but even if it isn’t, some extra caution is still your best bet.
On a completely unrelated note, with the help of a diligent investor on iHub, we managed to find the definition of “Wide boy” on an online dictionary. You can check out the meaning right here and decide for yourself whether you should consider it while making your investment decision.
