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Why Velo3D (SPFR Stock) is a Multibagger Stock in the MAKING! - YouTube
Channel: Xratios Investor - Stock Videos
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Welcome back to the channel.
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Let's talk about Jaws Spitfire Acquisition
under the ticker symbol SPFR that has a definitive
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merger agreement with Velo3D.
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So I'm gonna be super transparent with you
guys, I'm hyper bullish on Velo3D not just
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because it is backed by Elon Musk or Cathie
Woods, but rather because the technology underlying
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behind this company that we are looking at
present the potential to be your next 10x
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investment opportunity.
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As usual in today's video, I'm gonna break
down this video into 3 simple segments.
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What is this company all about, or rather
why Elon and Cathie is backing this stock,
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what's the bull and bear thesis on this and
if I鈥檓 buying this stock or not.
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Like the name of the company suggests, Velo3D
is a 3D metal printing solution company that
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allows manufacturers to address the most difficult
manufacturing challenges for aerospace, energy
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and specialty industrial applications that
no other vendor can offer.
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In other words, the company is tackling the
unmet challenges of lead times, cost effectiveness,
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and above all, complex parts to make 3D metal
printing an essential tool for engineers and
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manufacturers around the world.
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Let's take SpaceX for example, when it comes
to designing the raptor engines, what happens
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in the old 3D printing process is that the
insides of a printer had to be added with
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complex supports in order to produce the desired
outcome.
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Now, the problem with that is it really limits
the products design because they lose a lot
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of room to work within the support space,
and as a result, engineers need to waste a
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lot of time to iterate between the additive
manufacturing design tradeoffs and post-processing.
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And this is where Velo3D's proprietary SupportFree
3D-printing technology comes in.
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With the Velo3D's SupportFree printing technology,
people no longer have to worry about the complex
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internal geometry.
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The once deemed impossible jobs in 3D printing
are now made possible.
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Engineers can now have the design freedom
for creating highly complex geometries to
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take additive manufacturing mainstream, pretty
much allowing companies to make any products
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they desire.
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In simple terms, Velo3D's technology is what
enables SpaceX engineers to take their raptor
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engines to the next level.
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Now that we've learnt why Elon Musk and Cathie
Wood like Velo3D.
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Let's jump right straight into the bull and
bear thesis.
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3 reasons to be bearish on this.
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SPAC stocks are being crushed.
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Okay, in all honesty, this has completely
nothing to do with the company financial or
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the underlying technology itself, but the
undeniable fact is that SPAC stock didn't
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just slow down, but it is being absolutely
crushed at the moment.
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People are losing interest in SPACs.
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I mean, at this moment right now, there's
still over 300 SPACs in the market looking
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for targets.
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And the problem?
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These desperate blank check companies are
bringing lower and lower quality companies
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to the public.
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The nature of SPACs are far too speculative
with little to no revenue and financial aspect
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to back it up.
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2.
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Velo3D is far too reliant on 1 customer.
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Did you know that approximately up to 70%
of its revenue was derived from the sales
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through SpaceX for the fiscal years of 2019
and 2020, respectively.
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Moving forward in 2021, Velo3D still anticipates
that a significant portion will still continue
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to be derived from the sales through SpaceX.
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Essentially what this means is that it can
either make or break for Velo3D right, Like
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the saying goes, don鈥檛 put all your eggs
in one basket.
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3.
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Velo3D will likely dilute its shareholders
in the foreseeable future.
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Since Velo3D is still an early stage company,
it is expected that they will need additional
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capital.
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This is indeed a risk that investors must
be aware of as shareholders and they need
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to take a closer look at how dilution happens
and how it can affect the value of their shares.
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3 reasons why I'm hyper bullish.
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Velo3D technology is 5 years ahead of any
competition.
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Yes, this comment is not coming from me, but
the people from SpaceX themselves.
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In fact, it was so good that at one point
in time Elon Musk was trying to buy Velo3D
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but they didn鈥檛 want to sell.
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Guys, think about it right, for people to
say your technology is 5 years ahead of people
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proves just 1 thing, that is they have distinguished
their company from their competitors.
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Being the first to offer manufacturers to
make literally any products in 3D metal printing
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is extremely valuable and certainly sets Velo3D
apart from other additive manufacturing companies
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in the world.
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2.
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3D metal printing is the future.
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Now, the 4th Industrial Revolution is shaping
up to be one of the most significant opportunities
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of our lifetime.
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We are already seeing jobs, policies, industries
and entire economies shifting as our digital
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and physical worlds merge.
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According to the World Economic Forum, the
value of digital transformations in the 4th
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Industrial Revolution is estimated at $100
trillion in the next 10 years alone, across
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all sectors, industries and geographies.
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From the way I see it, Velo3D technology is
as good as it gets when it comes to the transformations
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in the 4th industrial revolution and it appears
that Velo3D will play a huge role in it.
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3.
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Strong revenue visibility ahead in 2021 and
2022.
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They expect revenue to grow by 41% in 2021,
then 237% to $89 million by 2022.
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They already have revenues coming from recurring
revenue, booked and preorders from existing
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customers.
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And the crazy thing is, this revenue visibility
is based on their existing product.
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Meaning that these numbers do not rely on
technologies beyond what Velo3D has right
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now.
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Overall, I think SPACs stocks are still on
the losing side at the moment, and I expect
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this trend to continue for a while more.
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But in all honesty in my personal opinion,
I think investing opportunities like Velo3D
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comes once in a lifetime.
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For Velo3D, I see more and more companies
adopting their additive manufacturing technology
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platform.
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And for that reason, I鈥檝e decided to slowly
build my position in this stock.
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Perhaps, I also have a soft spot for companies
with breakthrough technologies.
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So yeah,
Well, that's all I have for this video.
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If you are interested in the financial details
regarding this SPAC, please check it out in
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the description box below.
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As always, Please hit the thumbs up button
so that this video can reach to a brand new
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audience.
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It really means a lot to me.
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Also, remember to subscribe for new future
video if you want to learn and watch more
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on my elaborated stock research.
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Till next time!
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