3D MakerJet (MRJT): Don’t Set It, Just Forget It
One of the biggest red flags for retail investors should be any company that trades as an “over-the-counter” (OTC) stock because 99% of the time you will lose your money investing in OTC stocks. As a trader, you might make money in OTC stocks, but we’re investors not speculators. We lean towards the Ron Popeil method which is to “set it, and forget it”. Before you admonish that strategy by telling us we need to regularly monitor our investments (which we do), consider that Fidelity once conducted a study that showed the best performing accounts under their management were those accounts for which the owners forgot about, or in some cases the owner had just died. Talk about action through inaction. Fascinating!
So let’s talk about 3D printing. We put together a portfolio of pure-play 3D Printing stocks which we’re invested in and the growth thesis hasn’t changed. We’re long and strong on 3D printing, and continue to monitor the companies in this space. One newcomer we came across recently is OTC company 3D MakerJet.
Previously known as “American Business Change Agents”, Nevada based corporation 3D Makerjet (OTCMKTS:MRJT) is developing a “game changing product line of 3D printers“. With their showroom and corporate offices in Orlando Florida, the Company is “committed to supplying the best plastic, Medical, Culinary and Powderless Metal 3D Printers in the Industry”. That’s right, powderless metal 3D printers. We’re not sure what that means, but with $52,000 in cash on hand, we wouldn’t be that confident in the company’s ability to develop this futuristic printer, much less their ability to provide support if we were to buy one of their printers. They’ve already burned through $1.2 million and it doesn’t look like they have much to show for it. Maybe it was spent on establishing a social media presence per the below statement made by the Company:
We use two platforms currently – Facebook and Twitter – because it gives us the opportunity to share in the excitement and joy our customers are feeling when their ideas are made real.
Really? Ok then.
3D MakerJet’s R&D partner is a Chinese company called Zbot, and they claim to be “working on a metal 3D printer prototype for mass production based on proprietary technology shared between both companies”. It’s hard to see how just how any 3D printing technology was “shared” with Zbot. MakerJet’s company president, John Crippen, has a background in restaurant management and consulting. The other two executives listed in the “About Us” section appear to have no prior experience in 3D printing. The “sharing” seems to move in one direction only; from Zbot to 3D MakerJet. A look at Zbot’s website shows the exact same 3D printers that 3D MakerJet is selling:
Now even you can “afford affordable 3D printer”. But wait, there’s more!
Zbot 3D Makerjet is also working on a human scanner and a candy printer.
3D MakerJet’s website has an “Investors” page which looks like somebody took a whole 2 minutes to put it together. The page contains multiple occurrences of blatant typos which doesn’t give us much confidence in the message being delivered. 3D Makerjet appears to be nothing more than an import company selling 3D printers developed by some relatively unheard of Chinese company. None of what we’ve seen so far makes us want to invest in this company or buy their printers. With the industry getting hammered lately, there’s no shortage of bargains to be had, not only in shares of 3D printing stocks, but also in the printers themselves. There is absolutely no compelling reason whatsoever to buy shares in 3D Makerjet (OTCMKTS:MRJT) or to buy their printers. Don’t set it, just forget it.
(UPDATE 6/24/2018 – According to Yahoo Finance, this “company” now has a market cap of $572,000 – so it’s worth about the same as a run down studio on the outskirts of Berkeley.)