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Breaking Through With 3D Pioneer Printing, Inc (DPSM)

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New paradigm-shifting industries like 3D printing always give birth to huge stock market winners, with 3D Systems (DDD) and Stratasys (SSYS) as the current sector torchbearers. While the competition among big-cap market leaders usually grabs the spotlight, related businesses invariably emerge with innovative ways to leverage a breakout technology’s growing acceptance and success. Today I want to bring your attention to one of those companies in the 3D printing space — 3D Pioneer Printing, Inc.— trading under the symbol DPSM.

By way of background, 3D printing refers to the process of making a solid three-dimensional object from a digital model, also called “additive manufacturing.” With 3D printing, an object is created using successive layers of material, laid down in different shapes to form the final product. Beyond the flashy headlines about guns and human skin being 3D-printed, it has already become an especially “disruptive technology” for a wide variety industries. In fact, it can completely restructure the way products are made, leading to efficiencies—along with bigger profits— for those companies adopting this revolutionary new approach.

According to Wohlers Associates, a consultancy firm, the market for 3D printers and services was worth $2.2 billion worldwide in 2012, up 29% from 2011. Ultimately, however, the size of the 3D printing marketing is expected to dwarf those numbers relatively quickly, because the technology has such a wide-range of applications. Some of these include engineering, healthcare and a rapidly expanding, diverse array of manufacturing tasks. Even the bellwether financial publication Forbes has said that 3D printing will ultimately have a “radical impact” on every industry.

Following the meteoric rise of 3D printing companies that have targeted the manufacturing needs of big businesses, several young companies began battling to bring 3D printing into the home. One of those is 3D Pioneer Printing, Inc., which has developed a simple “plug and play” software application for consumers to be able reap the benefits of this breakthrough technology either at their own businesses, or in their homes.

With the goal of bringing 3D printing to the mainstream consumer, the company has developed a flagship product called Appaloza. The Appaloza application, developed by company Chief Technology Officer Mark Flores Martin, is a cloud-based platform that allows users to manage a 3D printer from anywhere there is internet access. Just like iTunes allows you to buy songs, movies and games, Appaloza allows you to print the 3D products of your choice, remotely.

If you’re thinking how great that would be, but asking how you might actually be able to “manufacture” the object, 3D Pioneer Printing has the answer. They’ve developed a printing machine called the Wyatt, specifically designed to seamlessly interface with the Appaloza application — for which the patent alone could put this company on the 3D printing map for good.

It’s hard to grasp the game-changing economic impact a 3D printing system like this could have. In essence, individuals and smaller businesses would be able to “manufacture” what they want, ending their reliance on overseas exporters. Especially in light of the fact that 3D printers can already forge tennis racquets, shoes, belts, golf tees, pens, screwdrivers, hammers, knives, and yes, even functional guns. Not only would it bring 3D printing into the mainstream; it has the potential to drastically alter just about everything we know about the manufacture, sale and distribution of some of the most commonly used products in the global marketplace

To fully understand the potential of DPSM, just look at how revolutionary—and profitable—the 3D printing industry has been so far. The best example is 3D Systems Corp (DDD), an international provider of 3D printing design-to-manufacturing solutions. At the end of 2011 DDD shares were available for under $10 each. Two years, sales and earnings soaring, DDD was trading in excess of $96 per share. During the same time period, shares of direct competitor Stratasys (SSYS) had ripped more than 16 times higher to over $130 each.

AHII chart

With DPSM’s shares beginning to trade in earnest less than four months ago, it’s difficult to draw any hard and fast technical conclusions about the stock’s trajectory. That said, shares began to receive some trading interest in the $0.35 – $0.45 channel during the first three months of 2014, with $0.53 representing short-term resistance.

Over the past 10 days, with the announcement of the signing of a Memo of Understanding to produce 3D printers with a Chinese firm, and the beta launch of Appaloza, buying interest has picked up. Notably, DPSM’s shares jumped 10% to $0.65 Friday, while the bigger exchanges were getting leveled in a market-wide sell-off.

Given the market potential alone of 3D Pioneer Printing’s Appaloza application, this issue bears watching in the months ahead — and DPSM shares could prove to be a great ground-floor investment at current levels.

Good luck with this and all of your trades.

Warren Gates, Senior Analyst, Oakshire Financial

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