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XONE rises as GE buys AM companies ?3


XONE is up this morning on news that GE is buying two additive manufacturing companies: Arcam and SLM Solutions.  Though both companies work in metals, as ExOne does, my viewpoint is that the rise is completely unwarranted.  Arcam does electron beam melting (EBM), and SLM's namesake technology is selective laser melting.  By contrast, ExOne's binder jetting is a chemical process.  ExOne management maintains that it has a cost advantage over competing technologies, but that's something we can already see changing with industry attention like this as well as competition from startups.  GE has demoed ExOne machines at a facility near Pittsburgh, but I've not seen any sign of further interest.  If anything were impending, I doubt the recent management changes would have occurred.