Earlier today The Bear Cave published on Nano Dimension (NASDAQ: NNDM) for paid subscribers. For $44/month paid subscribers get two reports like this every month. Below is an excerpt of the paid report. Subscribe now to get the full report and future reports for paid subscribers.
Nano Dimension (NASDAQ: NNDM — $2.14 billion), an Israeli 3D printing company, has risen over 1,000% on optimism that its DragonFly printer can be used to make electronic circuit boards. Nano Dimension’s current CEO has been previously accused, but never convicted, of an “extortion attempt” and the company’s former Chairman was arrested on charges of money laundering, aggravated fraud, and securities violations. Nano Dimension’s history includes consistent unprofitability, serious dilution, an OTC to NASDAQ uplisting, a 50 for 1 reverse split, and 253 press releases.
Nano Dimension lacks the economic substance of many other multi-billion companies. Its revenue in 2020 totaled $3.4 million, less than half its $7.1 million in revenue during 2019. In its 10-K for the year ended 2020, Nano Dimension disclosed having 87 full-time employees, down from the 91 people it employed in 2018. Over the last five years, the company has spent approximately $42 million in R&D and earned $17 million in total revenue. Nonetheless, the company touts deals with “defense contractors” and sells investors on the potential of its 3D printers.
Shares outstanding have gone from about 1 million in 2017 to over 80 million in December 2020. In addition to issuing 253 press releases, the company often receives glowing coverage from The Motley Fool, TheStreet, the WallStreetBets subreddit, and five recent articles from InvestorPlace.com.
One prominent investor backing Nano Dimension is Cathie Wood, whose firm owns a roughly $100 million stake in the company. When asked about Nano Dimension recently Ms. Wood said, “We are very impressed by the new management.” That new management is being led by Yoav Stern, who took over as CEO in January 2020.
Yoav Stern previously served as the interim CEO of Magal Security Systems (NASDAQ: MAGS) from February 2009 to July 2009. Magal Security Systems later wrote that “during his term in office the employees operated in a hostile environment and were terrified by his managerial style. Suppliers were insulted and the relationships of the Company with its business partners were harmed as a result of his arrogant and erratic behavior.” In addition, Haaretz, an Israeli newspaper reported allegations that Mr. Stern made an “extortion attempt” to influence the voting of Magal’s largest shareholder during a proxy fight.
Mr. Stern’s previous work at Magal is not disclosed on his LinkedIn or in Nano Dimension’s annual report. Before Magal, Mr. Stern was Chairman of Kellstrom Industries, which went bankrupt, and was co-Chairman of Bogen Communications International (OTC: BOGN), which has seen its stock decline 90% over the last ten years.
Nano Dimension’s Chief Operating Officer, Zvi Peled, previously served on the board of BluePhoenix Solutions, which fell ~80% during its tenure as a public company.
Yaron Eitan, a Nano Dimension audit committee board member, was previously CEO of the Vector Intersect Security Acquisition SPAC that merged with a company that went to zero.
Roni Kleinfeld, another Nano Dimension audit committee board member, was previously on the board of Safe-T Group (NASDAQ: SFET), which fell 99%, and Elbit Imaging (OTC: EMITF), which also fell 99%.
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