3D Printers HypeWhat can you tell us about all the hype on 3D Printers? Should we invest in a company that makes them or a company that makes the parts? (Actually I think I would like to buy one of these just for fun!).
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Well, as the Irregulars might remember I thought all the building investor interest early last year warranted an investment as we watched the excitement increase, but the stocks got far, far ahead of themselves and I thought they should be sold to take profits (100% or so in six months for both the big companies, DDD and SSYS) in January.
Since then, DDD and SSYS have come down sharply and are starting to look like they have valuations that are more reasonable — they’re still very pricey growth stocks, but DDD, in particular, has come down to a range where I’m starting to get tempted again. DDD is down partly because of the bearish sentiment on all of these stocks when they topped out at ridiculous valuations a couple months ago (including some short-seller reports that criticized the stocks as being in a bubble), and partly because the CEO, who is probably planning to retire, sold more than half of his holdings.
You still have to hold your nose on these stocks a little bit, because they rely on a substantial increase in adoption of their technologies over the next few years and that increase is hard to time or guess at even though most pundits see it as inevitable, but the stock prices have come down enough to be worth looking at them again. I’m just looking, not buying, but I am paying attention to DDD and SSYS again.
DDD has come down in many metrics and time frames… Technically the stock is attractive even for a shorter term correction back to the upper 30s or even lower 40s … surprises, at this point, should be to the upside…