Short-seller Citron trashes 3D printer maker voxeljet, shares slide

Wednesday, 20 Nov 2013 | 2:36 PM ET

Nov 20 (Reuters) - Short-seller Citron Research questioned voxeljet AG's quarterly results, saying the Germany-based 3D printer maker provided loans to customers to generate sales and avoid posting a loss in its first results as a public company.

Shares of Voxeljet, which went public in a rousing debut last month, plunged as much as 23 percent Wednesday afternoon.

"We're not even sure such sales qualify as revenue ... that would depend on who the parties are and the collectability of the receivables, but why ruin a good bubble," Citron said. (http://link.reuters.com/zec84v)

Voxeljet makes large 3D printers for prototyping and counts Daimler AG, Ford Motor Co and 3M Co as customers. The company's printers were used to make three Aston Martin DB5 model cars for the latest James Bond film, "Skyfall".

Voxeljet was not immediately available for comment.

Shares of the company, which listed last month at $13, have more than quadrupled since then up to Tuesday's closing. They were trading at $44.35 on Wednesday.

Voxeljet's revenue rose 77 percent to 3.5 million euros ($4.7 million) in the quarter ended Sept. 30. The company reported a profit of 0.11 euros per share.

Voxeljet has a score of just 2 out of 100 on the Thomson Reuters StarMine Relative Valuation model. The lower the score, the more expensive the stock.

"VJET is the winner in Wall Street's race to the bottom," Citron said. "It's not even a company, it's just a hobby."

The short-seller set a fair price target of $12.09 on Voxeljet's American depositary share.

Short sellers such as Citron make money when the stock price of a company drops. They sell borrowed shares in the hope of buying them back at a lower price and return them to the lender, and gain from the difference in price.

Shares of the company were down at $46 on the New York Stock Exchange in afternoon trade. ($1 = 0.7428 euros)

(Reporting by Sruthi Ramakrishnan and Chandni Doulatramani in Bangalore; Editing by Kirti Pandey)