Another Purchase – [ASX:RBO] – Robo 3D

By | December 31, 2016

Robo 3D Share Purchase – What Is a Fair Price?

Price when writing article: ASX:RBO = 0.135. Current Price: RBO 0,09 -0,00 -1,11%.

I remember when I was a young child my parents always taught me that double dipping was not an ok thing to do. Now that I am older, double dipping in food terms is still not ok, but maybe ok when you’re talking shares. I recently bought 7515 shares of [ASX:RBO] and the price was fluctuating, then a lower price was on offer, so I thought to myself, “double or nothing”. So I did, I increased my holdings to 15,030 shares of [ASX:RBO], at an average purchase price of 0.135 each plus brokerage fees.

This is actually my third share purchase, I have talked about my first share purchase here.

 

About Robo 3D – [ASX:RBO]

Robo 3D [ASX:RBO] is a young 3D desktop company based in America. A lot of people ask why they are listing here in Australia and not in America. Well… it’s a lot cheaper and they wanted to be listed. So the short term answer is Australia! The market cap for this 3D company is ridiculously low and offers huge potential.

After successfully raising 6 million AUD for their IPO ($0.10 AUD each), Robo 3D are focusing on expanding their market share in the Desktop 3D printer market. They aim to have their devices sold in stores such as Target, Walmart etc. The company also aims to try and enter the education sector, 3D printers are becoming more popular, not only on the hobby side of  things but also in education. 3D printers are slowly becoming an everyday, normal printer. Remember when a laser or jet printers were only found at the local print store, now everyone has at least one in their home for printing.

 

Robo 3D Sales Figures to Date

Not only are they actually selling product, unlike many other IPO’s, they are increasing the sales dramatically, roughly 80% year on year.

As you can see, they are increasing sales, year by year. That is not the only reason why I have bought this company but also the “Fair Value” rating I have calculated.

Fair Value Calculation for Robo 3D [ASX:RBO]

A simple calculation I use to determine “Fair Value” of an IPO is as follows:

(Yearly Gross Revenue*10) + Cash On Hand
Shares on Offer

Using this formula we can come up with an estimated “Fair Value” for this stock. You also have to keep in mind that this is a high growth stock so it should be trading for a premium. Please note, company trades in USD but figures are shown in AUD.

(6*10) + 6
238.4

= 0.2768

Fair Value for this stock is in the vicinity of 27c yet this is only trading at low teens. That is why I have bought a few, I am waiting for long term growth and then I will sell a few. As stated before it also has a year on year average of 80% growth, only time will tell if they can keep that growth rate, but if they can for some reason, it will pay off big time.

Until then, I wait.

4 thoughts on “Another Purchase – [ASX:RBO] – Robo 3D

  1. Mustard Seed Money

    Wow this is really interesting analysis and I will definitely be taking a look at them. I think 3D printers are definitely the wave of the future and if they develop the right technology RBO has a chance to get out buy one of the big two which would really pop the stock price. Thanks for sharing!!!

    Reply
    1. Buy - Hold - Long Post author

      Thanks, I appreciate it. I think this stock is well undervalued for such a growth stock with proven sales. I don’t see this going anywhere but up. Well, that’s my opinion I guess. Cheers

      Reply
  2. Dividend Life

    Hi BHL,
    I hope it works out as an investment. It’s too speculative for me – I stay away from small companies and IPO’s in particular. 3D printing certainly should be a growth industry though.
    Best wishes,
    -DL

    Reply
    1. Buy - Hold - Long Post author

      Hi DL. I understand what you mean but I’m willing to take the risk. They have a proven sales record and are expanding plus releasing more models soon. I’m looking to buy and hold for 30 years or so, minor fluctuations in price do not concern me too much. All the best.

      Reply

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