It has been yet another day of gains for the shareholders of 3D metal printing company Aurora Labs Ltd (ASX: A3D). Its shares are up 4% to $2.88 today, bringing its 30-day return to a whopping 142%.
Aurora Labs' shares have been on a tear this month as the company worked through the steps required by the U.S. Food and Drug Administration's Department of Radiological Health to begin shipping its printers into the United States.
Not that the printers are ready to be shipped. The smaller versions of these exciting and secretive pieces of technology are not expected to hit the market until mid-2017.
So why all the fuss? The idea with 3D metal printers is that mining companies, for example, could print spare parts onsite rather than have to send away for them.
The global metal manufacturing market is estimated by management to be worth US$3.8 trillion a year. Even a tiny slice of this giant industry would be incredibly lucrative for Aurora Labs.
Whilst the company is not alone in the industry, one key advantage is that its 3D metal printer is far more affordable than those of its competitors. Aurora Labs' small format printers retail between US$39,999 and US$42,999 (excluding GST and shipping), whereas the majority of its competitors market their machines at US$100,000 and above.
I believe that 3D metal printing has a very bright future and that Aurora Labs could well be on a path to something special. But I'm not ready to invest.
Whilst I feel confident the company is positioned well in a potentially lucrative market, I'd like to wait and see how the technology is received once it hits the market next year.
So for now I would suggest investors keep their powder dry and perhaps consider an investment in another exciting tech company instead. Altium Limited (ASX: ALU) has seen its share price drop a touch in the last month, presenting investors with a great buying opportunity in my opinion.
