Voxeljet Shares Respond After Sour Citron Research Report
In a report published Wednesday, Citron Report tore apart Voxeljet AG (NYSE: VJET) noting "small print nonsense" of the company's first quarterly report.
Although Voxeljet reported an EPS profit of 0.11c EUR per ADS, Citron Report was quick to note that the $4.76 million in revenue was driven by the sale of only three units of their 3D printing machines. Citron was also curious on the company's artificially high price to sales ratio (ttm basis) of 89.8.
The fine print of the quarterly report noted that zero printers were sold at fair market value and the "company's only system sales were transacted with loans went completely unmentioned on the company's triumphant conference call."
Citron delved into the background behind these loans and Voxeljet's true profit and discovered that the SEC contacted the company asking if the provided loans are offered to other or prospective customers. Voxeljet replied that they do not usually offer loans and do not have a formal loan program.
Citon research interpreted this as, "So … we don't ordinarily make loans to allow customers to buy our printers, except when its 100% of our systems revenue in our first reported quarter as a public company."
The report concluded by warning investors not to be "abuse" your dollars in this stock. Citron wrote, "VJET is the winner in Wall Street's race to the bottom. It's not even a company, it's just a hobby. Citron challenges any of the investment banking firms to underwrite a bigger joke than this in the space. If it was a responsible commentator, even Motley Fool would have to call this what it is: stupid."
Shares of Voxeljet closed at $58.01 on Tuesday and are currently experiencing a lemon-in-the-eye response, down 17.07 percent.
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