3-D development solutions platform Velo3D(NYSE:VLD) stock is surging after going public via special purpose acquisition company (SPAC) reverse merger. The metal additive manufacturing (AM) solution comprises provisioning of a total end-to-end full-stack hardware and software solution from design to printing production.
The Company touts its efficiency with microturbines, turbopumps, and heat exchanges. Dozens of parts can be consolidated into a single unit from design to construction. Velo3D technology is disrupting decades old processes for manufacturing turbines and various high-value metal parts. The technology is years ahead of other AM technologies.
In a nutshell, the technology can deliver complex high-valued metal parts with design advantages, lower costs, and faster lead times. The created components are used in space rockets, jet engines, fuel delivery systems, and other high-value mission-critical metal parts. Risk tolerant investors seeking exposure in the next-gen end-to-end 3D AM printing technology can watch for opportunistic pullbacks in shares of Velo3D.
Velo3D Technology
The Velo3D Sapphire Metal AM Printer is disrupting the traditional processes. Gas turbines generate electricity by converting liquid fuel or air into mechanical energy. Velo3D enables manufacturing optimization by disrupting the traditional process. This includes the combination of casting, 5 axis machining, brazing, or welding dozens of sub-components to construct a gas turbine.
Velo3D can consolidate dozens of parts (61 parts) into a single unit resulting in more optimal turbines that are more efficient, light weight (50%) with a higher power density (10X) and durability (40X). In essence, creating a new wave of power generation innovation. Velo3D technology is also applied in turbopumps and heat exchangers, which are found anywhere you find oil, fuel, or electronics in a high-performance vehicle.
The proprietary Velo3D SupportFree metal powder-bed fusion (PBF) provides the ability to print horizontal surfaces without supports and with a high-quality surface finish, eliminating the need to post process internal support structures resulting in much higher quality internal channels and flow paths for fluids and gas. Designers can print 6000 to 1 aspect ratio with thin walls down to 150 micron in thickness to optimize heat transfer.
Financials
The Company is still in early stages exhibiting net losses of (-$13.5 million) in Q2 2021, up from (-$5.7 million) in the year ago same quarter. The Company generated $8.3 million in revenues for the six months ending June 31, 2021, down from $9.96 million in the year ago same period.
Revenues are generated from the sale and lease of its end-to-end hardware (3D printers) and software solutions as well as support services. Net losses for the 1st half of 2021 was (-$26 million) or (-$1.32) EPS versus (-$10.5 million) or (-$0.57) EPS in the same period year ago.
VLD Opportunistic Price Levels
Using the rifle charts on the weekly and daily time frames provide a precision view of the landscape for VLD stock. The weekly rifle chart is attempting a breakout as the weekly 5-period moving average (MA) is rising near the $9.40 Fibonacci (fib) level to crossover the weekly 15-period MA near the $9.67 fib. The weekly stochastic has a mini pup as shares overshot the weekly upper Bollinger® Bands (BBs) at $12.29. The daily rifle chart formed an uptrend on the breakout above the market structure low (MSL) trigger at $7.75.
The rising daily 5-period MA is at $11.55 followed by its 15-period MA support at $10.00. The daily upper BBs sit at the $13.48 fib. The daily market structure high (MSH) can form with a lower high candlestick with the low of that candle acting as the trigger. Channel tightening can be expected to the 15-period MA and potential the daily lower BBs at $5.47 in the worst case scenario.
Risk-tolerant investors can look for opportunistic pullback price levels are at the $10.54 fib, $9.96 fib, $9.40 fib, $8.88 fib, $8.63 fib, $7.98 fib, $7.71 fib, and the $7.55 fib level. Upside trajectories range from the $14.43 fib up to the $18.00 fib level.