3D Pioneer Systems: Not much to see here
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In past articles, we’ve highlighted the dangers of over-the-counter stocks, especially those that seem to attach themselves to up and coming disruptive technologies such as 3D Printing. Rainbow Coral Corp, a company which claimed to be entering 3D Bioprinting, has lost over -60% since our article which pointed out that their lofty aspirations were hardly achievable. Shortly after our article on Makism was published, the Company had their securities suspended by the SEC which still remains the case today. Another OTC “3d printing” company that began trading last week is 3D Pioneer Systems.
About 3D Pioneer Systems
3D Pioneer Systems (OTCBB: DPSM) was incorporated in the State of Nevada on April 22, 2008. On October 14, 2013, the company changed their name from Mobile Gaming International Corp. to 3D Pioneer Systems. Their stated intent is to “deliver 3D printers that are unparalleled in consumer-friendliness, speed, and print quality”. Not only that, but they are also continuing to pursue mobile gaming in hopes of integrating these two high growth areas into a single enticing value proposition.
What are shareholders buying?
As of January 2014, 3D Pioneer had $17,497 cash on hand which accounted for all of their total assets and notes payable amounting to $76,923. With a current market cap of over $30 million, it’s difficult to see just what you are buying should you acquire shares in 3D Pioneer. There have been some recent 8-K filings, but none of these show much promise. One recent 8-K filing states that 3D Pioneer entered into a “non-binding MOU”, essentially about as binding as a handshake, with a Chinese company called MagicFirm. This is the same company we highlighted in an earlier article that has a 3D printer offering called MBot which looks identical to Stratasys’s MakerBot. MagicFirm intends to deliver prototypes of “Wyatt”, 3D Pioneer’s first 3D printer and “Whip”, 3D Pioneer’s web enable printing controller. Let’s hope there’s something original being developed here should this ever come to fruition. Another recent 8-K filing announced the appointment of Joshua O’Cock as Chief Marketing Officer. Joshua’s CV states he is the “Web and Social Media Officer” at the University of Manchester having achieved his Bachelor’s degree just 4 years ago. This is hardly the C-level experience that a tenured CMO should bring to the table. Yet another 8-K filing this year announced that 3D Pioneer now has access to a $500,000 draw down for future financing. Just how much can be accomplished with such a small amount of money and such lofty aspirations?
Conclusion
As with all the OTC companies we highlight, there’s not much promise to be had in 3D Pioneer Systems (OTCBB:DPSM) for investors who are looking for exposure to disruptive technologies such as 3D printing. Speculators, maybe. Investors, no.
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Agree completely on DPSM.
However, there is a company you might keep an eye on for future developments in the consumer/prosumer space, and that’s Tinkerine Studios (TKSTF). This is a company with an established sales history with award-winning printers and a business plan with a focus on education/public schools. Management includes former MakerBot and Shapeways management members, and advisory board includes a member of Canadian parliament.
Most (90%+) OTC/penny stocks are not investment-worthy IMO. TKSTF is an exception and is one to watch.
Thank you for the heads up on Tinkerine Gary. In regards to OTC stocks, I’d be leaning more towards 99% not being worth investing in. Speculating, yes. Investing, no. In the case of Tinkerine, the US listing is actually an ADR for the Canadian listed shares so not the typical OTC shell company situation that we see so often. This could be an exception and we’ll certainly take a look at it.