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3DX Industries (OTC: DDDX): Revolutionizing Manufacturing & Government Contracts

3DX Industries (OTCPNK: DDDX) recently experienced a significant upswing, with a notable 58% surge in its stock price last week following the company’s…

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3DX Industries (OTCPNK: DDDX) recently experienced a significant upswing, with a notable 58% surge in its stock price last week following the company’s announcement of JCP compliance. While this marks a significant milestone for the company, the broader question revolves around whether its future prospects justify the potential for further gains beyond the recent surge. To gain a deeper understanding, let’s delve into the company background, recent developments, and insights from retail investors. 

Background:

3DX is a distinguished manufacturer, renowned for its proficiency in both additive and subtractive manufacturing. Their primary goal is to pioneer inventive solutions that revolutionize and propel manufacturing processes forward. As outlined on their website, they plan to achieve this through strategic collaborations, continuous research and development, and an unwavering commitment to customer contentment. 

Here’s more on Additive and Subtractive Manufacturing for those that aren’t familiar:

  1. Additive Manufacturing (AM): Also known as 3D printing, additive manufacturing involves creating objects by adding material layer by layer. This is in contrast to traditional manufacturing, where material is often cut away or subtracted. In AM, a digital design is used to guide the precise deposition of material, which can be plastics, metals, ceramics, or even composites, to build a 3D object. AM is known for its ability to create complex, customized, and intricate designs, making it valuable in various industries, including aerospace, healthcare, automotive, and more.
  2. Subtractive Manufacturing (SM): Subtractive manufacturing, on the other hand, is the traditional process of shaping objects by removing material from a solid block. Common methods of subtractive manufacturing include milling, turning, drilling, and grinding. These techniques are particularly useful for creating parts that require high precision and consistency.

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Significant Release: 

DDDX’s recent announcement represents a significant milestone that could potentially generate substantial cash flow if they begin winning contracts. The company has achieved JCP compliance and is now qualified as an Additive Manufacturer under the United States Department of Defense – Joint Certification Program (JCP).

This is a pretty big deal for two reasons. 

  1. Government contracts often come in substantial sizes, offering the possibility of significant future cash flows upon securing such contracts. Once you successfully secure government contracts and demonstrate your capabilities and products, it also paves the way for expanded business opportunities. 
  2. The JCP qualification serves as a validation of their unwavering dedication to meeting the industry’s most stringent quality standards. When engaged in government contracts, excellence is imperative, as these contracts demand nothing but the finest solutions to align with their exacting standards.

Let’s take a look at another publicly traded manufacturer to see how government contracts affected their business:

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Case Study Example: 

One publicly traded company with a notable example of government contracts significantly impacting its trajectory is Lockheed Martin Corporation (NYSE: LMT). Lockheed Martin is not a small company by any means, but it serves as a prominent illustration of the transformative effect government contracts can have. 

Lockheed Martin’s history is replete with major government contracts that have greatly influenced its trajectory. One standout example is its role in the F-35 Lightning II program. Lockheed Martin is the prime contractor for the F-35, a cutting-edge fifth-generation multi-role fighter aircraft. The U.S. government, alongside several international partners, has invested heavily in this program.

Impact: Lockheed Martin’s involvement in the F-35 program has not only secured substantial revenue but has also played a pivotal role in shaping the company’s future. This program represents a significant portion of Lockheed Martin’s revenue and has propelled the company to the forefront of the defense and aerospace industry. It has also led to the creation of thousands of jobs and the development of advanced technologies, further solidifying Lockheed Martin’s position as a major player in the defense sector. The success of government contracts, like the F-35 program, has been instrumental in shaping Lockheed Martin’s long-term trajectory and influence within the industry.

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Thoughts from Retail Investors: 

The company sustains a vibrant online presence with retail traders particularly on Twitter, who voice their optimistic views on DDDX’s promising future prospects.

One Twitter user, @SuperRobotOTC, stands out as a dedicated follower and an active shareholder of the company. It’s worth noting that the user scheduled to conduct an interview with the CEO that happened yesterday on November 1st, 2023. The interview has a wealth of information and “Important Nuggets” to look forward to, here’s the link.  

To put things into perspective succinctly, many investors like the company for the following reasons: 

  • The company hasn’t had any dilution/Issuances in over 2 years. 
  • People are fond of the share structure and low float, which means significant announcements can move the share price easily. 
  • $800k in convertibles, convertible at $0.50-.60 over 10x from current price. 
  • JCP Compliance (Allows access to unclassified military critical technical data). 
  • Government Contracts. 
  • Highly active in the Aerospace Industry (Completed orders for StandardAero, who did $3b in revenues in 2022. Also submitted a bid for Boeing $BA in July 2023).
  • Hard working management with tons of experience and great backgrounds.

For those of you that might not understand the more detailed highlight of “$800k in convertibles convertible at $0.50-.60 over 10x from current price”, allow us to explain.

$800,000 in convertibles, convertible at $0.50-$0.60 refers to a financial arrangement involving convertible securities, such as convertible bonds or preferred stock. These securities can be converted into common shares of the company at a predetermined price range of $0.50 to $0.60 per share. Here’s what this means for the company:

  • Financial Flexibility: The existence of convertible securities provides the company with a source of potential financing. Convertible securities offer the flexibility of being used as debt or potentially converted into equity based on the investor’s choice.
  • Potential Dilution: If the convertible securities are converted into common shares, it can lead to an increase in the total number of outstanding shares. This would mean dilution, but in the grand scheme of things DDDX’s scenario is a fairly small percentage of the existing shares so it wouldn’t have a large impact. 
  • Use of Proceeds: The $800,000 represents the potential capital that the company could raise through conversion. This capital can be used for various purposes, such as research and development, marketing, debt reduction, or general working capital.

Conclusion:

In the world of OTC-traded companies, a common challenge is company’s failing to live up to the enticing promises made to investors. This is especially true for those trading on OTCPNK, where reporting requirements are less stringent, making it more crucial to exercise caution when considering an investment. 

Many investors seek genuine companies that are truly driving innovation in their respective industries, have non-dilutive practices, well-structured share capital, or, better yet, a management team that consistently delivers on its commitments. 

It’s certainly reassuring to see that a substantial number of online users believe DDDX precisely fits these criteria. 

We highly encourage monitoring this company closely as we anticipate updates regarding the Boeing contract and potentially pivotal contracts with the DoD. DDDX has already showcased its capabilities by successfully fulfilling orders for a $3B revenue company in the past. We continue to hope for the best, and eagerly await more pivotal contracts, akin to $LMT’s (Lockheed Martin) success.

We will update you on DDDX when more details emerge, subscribe to Microcapdaily to follow along!

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Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.

Picture by ZMorph3D from Pixabay

The post 3DX Industries (OTC: DDDX): Revolutionizing Manufacturing & Government Contracts appeared first on Micro Cap Daily.

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February Employment Situation

By Paul Gomme and Peter Rupert The establishment data from the BLS showed a 275,000 increase in payroll employment for February, outpacing the 230,000…

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By Paul Gomme and Peter Rupert

The establishment data from the BLS showed a 275,000 increase in payroll employment for February, outpacing the 230,000 average over the previous 12 months. The payroll data for January and December were revised down by a total of 167,000. The private sector added 223,000 new jobs, the largest gain since May of last year.

Temporary help services employment continues a steep decline after a sharp post-pandemic rise.

Average hours of work increased from 34.2 to 34.3. The increase, along with the 223,000 private employment increase led to a hefty increase in total hours of 5.6% at an annualized rate, also the largest increase since May of last year.

The establishment report, once again, beat “expectations;” the WSJ survey of economists was 198,000. Other than the downward revisions, mentioned above, another bit of negative news was a smallish increase in wage growth, from $34.52 to $34.57.

The household survey shows that the labor force increased 150,000, a drop in employment of 184,000 and an increase in the number of unemployed persons of 334,000. The labor force participation rate held steady at 62.5, the employment to population ratio decreased from 60.2 to 60.1 and the unemployment rate increased from 3.66 to 3.86. Remember that the unemployment rate is the number of unemployed relative to the labor force (the number employed plus the number unemployed). Consequently, the unemployment rate can go up if the number of unemployed rises holding fixed the labor force, or if the labor force shrinks holding the number unemployed unchanged. An increase in the unemployment rate is not necessarily a bad thing: it may reflect a strong labor market drawing “marginally attached” individuals from outside the labor force. Indeed, there was a 96,000 decline in those workers.

Earlier in the week, the BLS announced JOLTS (Job Openings and Labor Turnover Survey) data for January. There isn’t much to report here as the job openings changed little at 8.9 million, the number of hires and total separations were little changed at 5.7 million and 5.3 million, respectively.

As has been the case for the last couple of years, the number of job openings remains higher than the number of unemployed persons.

Also earlier in the week the BLS announced that productivity increased 3.2% in the 4th quarter with output rising 3.5% and hours of work rising 0.3%.

The bottom line is that the labor market continues its surprisingly (to some) strong performance, once again proving stronger than many had expected. This strength makes it difficult to justify any interest rate cuts soon, particularly given the recent inflation spike.

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Mortgage rates fall as labor market normalizes

Jobless claims show an expanding economy. We will only be in a recession once jobless claims exceed 323,000 on a four-week moving average.

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Everyone was waiting to see if this week’s jobs report would send mortgage rates higher, which is what happened last month. Instead, the 10-year yield had a muted response after the headline number beat estimates, but we have negative job revisions from previous months. The Federal Reserve’s fear of wage growth spiraling out of control hasn’t materialized for over two years now and the unemployment rate ticked up to 3.9%. For now, we can say the labor market isn’t tight anymore, but it’s also not breaking.

The key labor data line in this expansion is the weekly jobless claims report. Jobless claims show an expanding economy that has not lost jobs yet. We will only be in a recession once jobless claims exceed 323,000 on a four-week moving average.

From the Fed: In the week ended March 2, initial claims for unemployment insurance benefits were flat, at 217,000. The four-week moving average declined slightly by 750, to 212,250


Below is an explanation of how we got here with the labor market, which all started during COVID-19.

1. I wrote the COVID-19 recovery model on April 7, 2020, and retired it on Dec. 9, 2020. By that time, the upfront recovery phase was done, and I needed to model out when we would get the jobs lost back.

2. Early in the labor market recovery, when we saw weaker job reports, I doubled and tripled down on my assertion that job openings would get to 10 million in this recovery. Job openings rose as high as to 12 million and are currently over 9 million. Even with the massive miss on a job report in May 2021, I didn’t waver.

Currently, the jobs openings, quit percentage and hires data are below pre-COVID-19 levels, which means the labor market isn’t as tight as it once was, and this is why the employment cost index has been slowing data to move along the quits percentage.  

2-US_Job_Quits_Rate-1-2

3. I wrote that we should get back all the jobs lost to COVID-19 by September of 2022. At the time this would be a speedy labor market recovery, and it happened on schedule, too

Total employment data

4. This is the key one for right now: If COVID-19 hadn’t happened, we would have between 157 million and 159 million jobs today, which would have been in line with the job growth rate in February 2020. Today, we are at 157,808,000. This is important because job growth should be cooling down now. We are more in line with where the labor market should be when averaging 140K-165K monthly. So for now, the fact that we aren’t trending between 140K-165K means we still have a bit more recovery kick left before we get down to those levels. 




From BLS: Total nonfarm payroll employment rose by 275,000 in February, and the unemployment rate increased to 3.9 percent, the U.S. Bureau of Labor Statistics reported today. Job gains occurred in health care, in government, in food services and drinking places, in social assistance, and in transportation and warehousing.

Here are the jobs that were created and lost in the previous month:

IMG_5092

In this jobs report, the unemployment rate for education levels looks like this:

  • Less than a high school diploma: 6.1%
  • High school graduate and no college: 4.2%
  • Some college or associate degree: 3.1%
  • Bachelor’s degree or higher: 2.2%
IMG_5093_320f22

Today’s report has continued the trend of the labor data beating my expectations, only because I am looking for the jobs data to slow down to a level of 140K-165K, which hasn’t happened yet. I wouldn’t categorize the labor market as being tight anymore because of the quits ratio and the hires data in the job openings report. This also shows itself in the employment cost index as well. These are key data lines for the Fed and the reason we are going to see three rate cuts this year.

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Inside The Most Ridiculous Jobs Report In History: Record 1.2 Million Immigrant Jobs Added In One Month

Inside The Most Ridiculous Jobs Report In History: Record 1.2 Million Immigrant Jobs Added In One Month

Last month we though that the January…

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Inside The Most Ridiculous Jobs Report In History: Record 1.2 Million Immigrant Jobs Added In One Month

Last month we though that the January jobs report was the "most ridiculous in recent history" but, boy, were we wrong because this morning the Biden department of goalseeked propaganda (aka BLS) published the February jobs report, and holy crap was that something else. Even Goebbels would blush. 

What happened? Let's take a closer look.

On the surface, it was (almost) another blockbuster jobs report, certainly one which nobody expected, or rather just one bank out of 76 expected. Starting at the top, the BLS reported that in February the US unexpectedly added 275K jobs, with just one research analyst (from Dai-Ichi Research) expecting a higher number.

Some context: after last month's record 4-sigma beat, today's print was "only" 3 sigma higher than estimates. Needless to say, two multiple sigma beats in a row used to only happen in the USSR... and now in the US, apparently.

Before we go any further, a quick note on what last month we said was "the most ridiculous jobs report in recent history": it appears the BLS read our comments and decided to stop beclowing itself. It did that by slashing last month's ridiculous print by over a third, and revising what was originally reported as a massive 353K beat to just 229K,  a 124K revision, which was the biggest one-month negative revision in two years!

Of course, that does not mean that this month's jobs print won't be revised lower: it will be, and not just that month but every other month until the November election because that's the only tool left in the Biden admin's box: pretend the economic and jobs are strong, then revise them sharply lower the next month, something we pointed out first last summer and which has not failed to disappoint once.

To be fair, not every aspect of the jobs report was stellar (after all, the BLS had to give it some vague credibility). Take the unemployment rate, after flatlining between 3.4% and 3.8% for two years - and thus denying expectations from Sahm's Rule that a recession may have already started - in February the unemployment rate unexpectedly jumped to 3.9%, the highest since February 2022 (with Black unemployment spiking by 0.3% to 5.6%, an indicator which the Biden admin will quickly slam as widespread economic racism or something).

And then there were average hourly earnings, which after surging 0.6% MoM in January (since revised to 0.5%) and spooking markets that wage growth is so hot, the Fed will have no choice but to delay cuts, in February the number tumbled to just 0.1%, the lowest in two years...

... for one simple reason: last month's average wage surge had nothing to do with actual wages, and everything to do with the BLS estimate of hours worked (which is the denominator in the average wage calculation) which last month tumbled to just 34.1 (we were led to believe) the lowest since the covid pandemic...

... but has since been revised higher while the February print rose even more, to 34.3, hence why the latest average wage data was once again a product not of wages going up, but of how long Americans worked in any weekly period, in this case higher from 34.1 to 34.3, an increase which has a major impact on the average calculation.

While the above data points were examples of some latent weakness in the latest report, perhaps meant to give it a sheen of veracity, it was everything else in the report that was a problem starting with the BLS's latest choice of seasonal adjustments (after last month's wholesale revision), which have gone from merely laughable to full clownshow, as the following comparison between the monthly change in BLS and ADP payrolls shows. The trend is clear: the Biden admin numbers are now clearly rising even as the impartial ADP (which directly logs employment numbers at the company level and is far more accurate), shows an accelerating slowdown.

But it's more than just the Biden admin hanging its "success" on seasonal adjustments: when one digs deeper inside the jobs report, all sorts of ugly things emerge... such as the growing unprecedented divergence between the Establishment (payrolls) survey and much more accurate Household (actual employment) survey. To wit, while in January the BLS claims 275K payrolls were added, the Household survey found that the number of actually employed workers dropped for the third straight month (and 4 in the past 5), this time by 184K (from 161.152K to 160.968K).

This means that while the Payrolls series hits new all time highs every month since December 2020 (when according to the BLS the US had its last month of payrolls losses), the level of Employment has not budged in the past year. Worse, as shown in the chart below, such a gaping divergence has opened between the two series in the past 4 years, that the number of Employed workers would need to soar by 9 million (!) to catch up to what Payrolls claims is the employment situation.

There's more: shifting from a quantitative to a qualitative assessment, reveals just how ugly the composition of "new jobs" has been. Consider this: the BLS reports that in February 2024, the US had 132.9 million full-time jobs and 27.9 million part-time jobs. Well, that's great... until you look back one year and find that in February 2023 the US had 133.2 million full-time jobs, or more than it does one year later! And yes, all the job growth since then has been in part-time jobs, which have increased by 921K since February 2023 (from 27.020 million to 27.941 million).

Here is a summary of the labor composition in the past year: all the new jobs have been part-time jobs!

But wait there's even more, because now that the primary season is over and we enter the heart of election season and political talking points will be thrown around left and right, especially in the context of the immigration crisis created intentionally by the Biden administration which is hoping to import millions of new Democratic voters (maybe the US can hold the presidential election in Honduras or Guatemala, after all it is their citizens that will be illegally casting the key votes in November), what we find is that in February, the number of native-born workers tumbled again, sliding by a massive 560K to just 129.807 million. Add to this the December data, and we get a near-record 2.4 million plunge in native-born workers in just the past 3 months (only the covid crash was worse)!

The offset? A record 1.2 million foreign-born (read immigrants, both legal and illegal but mostly illegal) workers added in February!

Said otherwise, not only has all job creation in the past 6 years has been exclusively for foreign-born workers...

Source: St Louis Fed FRED Native Born and Foreign Born

... but there has been zero job-creation for native born workers since June 2018!

This is a huge issue - especially at a time of an illegal alien flood at the southwest border...

... and is about to become a huge political scandal, because once the inevitable recession finally hits, there will be millions of furious unemployed Americans demanding a more accurate explanation for what happened - i.e., the illegal immigration floodgates that were opened by the Biden admin.

Which is also why Biden's handlers will do everything in their power to insure there is no official recession before November... and why after the election is over, all economic hell will finally break loose. Until then, however, expect the jobs numbers to get even more ridiculous.

Tyler Durden Fri, 03/08/2024 - 13:30

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