RE:RE:RE:ARK 3D PRNT ETF target weight could be higher for PYRThanks for the explanation!!
That's not actually true.
The ARK PRNT ETF divides the 55 companies in the fund into five categories or sub-sectors. You can view those categories in the fund here, on page 2, left side:
https://etfs.ark-funds.com/hubfs/1_Download_Files_ETF_Website/Fact_Sheets/PRNT_Factsheet.pdf
Each of these five sub-sectors has been given a total weighting to be spread across the companies in their group. Currently they are:
3D Printing Hardware 50.0%
Computer aided design (“CAD”) & 3D Printing Simulation Services 30.0%
3D Printing Centers 13.0%
Scanning and Measurement 5.0%
3D Printing Materials 2.0%
PYR falls into the "3D Printing Materials" sub-sector, which has been assigned a current 2% weighting.
By my count, 14 of the fund's 55 companies are part of PYR's sub sector. Those 14 companies then, combined, can only be valued (meaning receive their portion of the investor daily inflow) at 2% of the total PRNT ETF. One company alone in that group has a weighting of 0.77%. PYR is the 2nd largest holding in this group, at 0.29% weighting, up from its initial index weighting of 0.12% due to a tripling of its share price (and therefore an almost tripling of the value of ARK's PYR holdings) since ARK first bought PYR at $3.74.
While there is some room for flex within that 2% group, for instance to overweight PYR to offset one of the struggling group members, the % weighting rises will, in my opinion and by my math, continue to be more related to PYR's share price outpacing its 0.12% index weighting (and unexpectedly and dramatically outpacing the relative expected share price rise of other stocks in the fund) by a factor of 3, and only at the next quarterly rebalance might we see PYR given a significantly different weighting %. Until then, it will likely continue to get its 0.12% of the daily inflow chunk, but with a resulting value of those shares that is now triple what was anticipated when ARK first bought in at $3.74 on Jan 15.
anydaynowplease wrote: When you look at the holdings in ARK 3D PRNT ETF you will notice that there are 3 Tiers of of companies based on %of the ETF. PYR is at the top of the bottom tier. If it moves into the second tier, ARK would have to double or triple is current holdings of PYR. To place it in the top tier, ARK would have to own 10x its current holding.
Lets hope we move on up!!
developbc wrote: Just some humble thoughts that think is very important to put things in perspective in regards to ARK PRNT position in Pyrogenesis:
- PYR being bought while still being on the OTC is definitely eye opening
- Cathie Woods is a visionary and this is NOT her first rodeo - her and her team must have done serious due diligence on PYR
- ARK must have choosen PYR for long term growth as PYR weighting in the PRNT FUND has increased for .12 % to .29% in the last month along
- Regardless of the inflows of $ into the fund... I am betting they have an internal target weighting higher. IF for example, ARK PRNT had a target weight of X% they will slowly accumlate to reach but as their prospectus states..they have variance room as they see fit
- CEO Peter Pascali stated recently that 2021 will finally be the year of powder production and sales
- PYR NexGen production rate is unheard of in the 3D powder industry 25kg/hr , accrediated/validated by major Aerospace Industry players, Aubert & Duval has exclusive EU agreement w PYR placing is in the big league market place.
- ARK definitely sees the bigger picture knowing GE powders is PYR's old 3D powder technology and PYR has a serious future in the 3D powder big leagues.
PyroGenesis’ NexGen™ Plasma Atomization System, which produces metal powder at over 25 kg/hour, was unveiled in 2019 after having fulfilled a specialty metal powder order for a non-aerospace client, while maintaining all the characteristics demanded by the AM Industry (ie. oxygen content, flowability, density, etc.). Here was good questions by MazerRR that Peter answered last summer: 1)The NexGen system has previously been described as having the ability to produce metal powders with a narrow particle size distribution, and also to shift the bulk PSD to match the powder size required by the Client. Does the process still retain these features, even with the increase in production rates to over 25 kg/h?
Yes
2) While the AM industry is the main focus for PyrogenesisAdditive's metal powder production, do you also expect interest from the Metal Injection Molding (MIM) market?
Yes we do; definitely.
3) In the event of larger than expected demand for PyrogenesisAdditive's Titanium powders, is there an industrialization plan in place for expansion of production capacity?
Yes we do.
4) Has the COVID crisis in any way affected OEMs' interest in your upcoming Titanium powder offerings? I would imagine the NexGen's ability to produce high-quality Ti powders at lower cost would appeal to companies who, in addition to looking to secure their powder supply chain, want to further reduce costs, especially given current economic conditions.
We have seen no decrease in interest at all. I think people are getting excited as we come on stream. Hope that helps, Peter BTW today's updated PYR holdings 229,900 as of Feb 17, 2021 up from 225,400 yesterday's previous position.
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