Seeking Alpha
Editor's notes: Limits to XONE's sales and business model don't mesh well with a sky-high valuation. Smith says the stock should be valued 67% lower even if the company meets its targets.

Often times, the market gets caught up in a euphoric craze over the "next big thing," causing a group of companies to trade up in correlated fashion, irrespective of significant differences in their businesses. This momentum-fueled irrationality creates opportunities to make and lose a lot of money. Stocks related to 3D printing (e.g., SSYS, DDD) have picked up the mantle left by solar stocks, SSD stocks, Internet stocks, etc., and have all traded into the stratosphere despite very significant individual differences. The ExOne Company (XONE) typifies this madness and has no business being valued anywhere near the $46 at which it is currently trading. In fact, I can make a compelling argument that XONE is a...

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