3D-Printing Company Camtek (CAMT) Spikes Again on Buyout Rumors

Joel Anderson |

The wild ride that shares of 3D-printing company Camtek (CAMT) have been on for the last week doesn’t appear to have abated after the calendar turned over to December. Camtek rocketed up nearly 40 percent in trading Monday on very heavy volume, meaning it has more than tripled in value since the start of trading on Friday Nov. 22. While the combination of bullish market sentiments and a new product offering are contributing factors, it appears now as though rumors of a buyout may be playing a major role in the rising share prices.

Camtek Doesn't Take a Break from Volatile Week

Clearly, nobody trading Camtek decided to take the week off just because it was Thanksgiving. Shares jumped almost 40 percent on Nov. 22, with all of the action starting late in the trading day. The climb continued on Monday, Nov. 25 as shares climbed another 72 percent.

Gains appear to be driven by excitement over a new product offering, the GreenJet, which would be the first commercial 3D-printer in the printed circuit board PCB market. The timing of the spike was peculiar, though, as the GreenJet was initially announced on Nov. 7 during Camtek’s Q3 conference call, prompting speculation that it was a bullish blog post appearing in Seeking Alpha that was driving the volume and price increases.

The stock spiked another 35 percent on Tuesday only to watch those gains erode to just under 2.5 percent by market close after Camtek released a statement intended to clarify the nature of what the GreenJet would offer:

“[Camtek] is now in the advanced stages of the development of the GreenJet, a digital 3D printing system used for the deposition of solder mask designated for the printed circuit board industry (the “GreenJet System”). The first installation of the GreenJet System for evaluation in a customer’s manufacturing environment is expected to take place in the beginning of 2014 and, subject to the results, the Company expects the first commercial sales of the GreenJet System to take place during 2014.”

The correction appeared to carry over to Wednesday as the company lost just under 14 percent the day before Thanksgiving.

Buyout Rumors Driving Gains?

However, the picture received more clarity this weekend after Camtek’s Israeli parent company, PriorTech, Ltd., released the following statement on Sunday:

"At the request of the Israel Securities Authority, the company states that it is unaware of any information that is not known to the public that could have caused the jump in the share price of the company or of its subsidiary Camtek in the past two days, and the company wishes to clarify that there are no grounds for the rumor about an offer to purchase by the company for the purchase of the subsidiary's shares."

The statement would seem to indicate that Camtek was caught up in the swirling buyout rumors currently surrounding much of the 3D-printing industry after Hewlett-Packard (HPQ) announced its plans to enter the segment.

3D-Printing Continues as Active Segment

Camtek joins a list of 3D printing companies to see major increases in volume and share price in 2013 that includes Organovo (ONVO) , 3D Systems (DDD) , and ExOne (XONE) . These companies, combined with the IPO of German company Voxeljet (VJET) in late October, and its continued gains since that point, has helped make 3D printing one of the more volatile industries so far this year.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
ONVO Organovo Holdings Inc. 3.00 0.11 3.81 613,185
CMT Core Molding Technologies Inc 16.65 0.06 0.36 58,280
XONE The ExOne Company 9.85 0.54 5.76 93,007
VJET voxeljet AG American Depositary Shares each repres 3.30 -0.10 -2.94 45,705
HPQ HP Inc. 15.18 0.12 0.82 3,165,639
DDD 3D Systems Corporation 13.58 0.30 2.29 822,246
RIVE Riverview Financial Corp (New) 11.36 0.00 0.00 0

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