Breaking Finance News

Looks Like Citron Research is About to Add to the Scathing Facts About ExOne (XONE)

477499717_5d611e147c_oIf you’re a fan of an old fashioned, investigative reporting beat-down, look no further than a report published on The Street Sweeper. The 2,800 report basically calls The ExOne Company corrupt and lays out a ton of seemingly believable reasons, backed up with plenty of links to support it’s claims. The article, titled, The ExOne Company: Irrational exuberance obscures black clouds building around 3-D printing, starts by saying that in the company’s recently announced secondary offering, the 3-D printer maker is raising more money for its CEO than it is for the actual company.

The chief executive and his interests get far more money under this deal than the company itself.

It’s roughly $100 million for him versus $72 million for the company. That’s 1.55 million shares and 1.1 million shares respectively at an estimated $65 per share listed in the filing. The registration papers specify the shares will be offered by the company and by “selling stockholders.” A dig through the gibberish reveals those “selling stockholders” are actually CEO Kent Rockwell – through his two entities and trust.

It goes on to say that the stock is overvalued at $70, in part, because it’s products are overpriced and inferior to others on the market. One customer interviewed said that they don’t use the company’s printer that sits idle on their manufacturing floor because, “I can make the part faster on my own.”

From there, the article points out that the company only sold four of its printers in the second quarter and presents plenty of other not-so-kind analysis of the company.

Today, Citron Research tweeted its support for the article and said that The Street Sweeper missed a key fact. What that means, we don’t know yet but we will soon.

 

The stock is up 1 percent today.

Is that what you took from the tweet? Leave us a comment and let us know.

[stock-tools exchange="NASDAQ" symbol="XONE" image_height="230" image_width="350"]

Disclosure: At the time of this writing, the author had no position in the company mentioned.

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