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  • 3D Printing: An Analysis With No Numbers 1 comment
    Mar 10, 2014 4:33 PM | about stocks: DDD, SSYS

    In the last two months, 3D Systems has been a victim of the media, analysts and various authors. Unfortunately, nowadays the media has the power to be spread extremely fast and so making everyone aware of the "negativity", "unprofitable", "super-hyper-overvaluation" and any other non-positive adjective that you can think of to categorize 3D Systems' stock. As a result, many investors have panicked and lost its credibility for the stock and consequently but not surprisingly, the stock has lost a considerable percentage in the market (it went from $96.42 on January 3rd down to $67.31 as of March 9th).

    I am sure that most of the people who are reading this article have watched the wonderful movie the Wolf of Wall Street. In the movie, one can appreciate how unreal the market really is, and that in most of the cases it does not follow the true value of the stock but rather the manipulations done by large investment firms who own a big percentage of shares in the company. By publishing analysis of the company and selling a considerable percentage of their owned shares, they can "play" with the price of the stock to benefit from its customers and get more profit. Unfortunately, these are the rules of the market and one can not change them, but what one can do change, is the way you react to the media when it constantly attacks a stock as it has been done with 3D Systems.

    I am not saying with this that one should ignore the reality in the case of a non-profitable stock, but this case is different. All the investors who have put their money in 3D Printing companies have done it because they know the unthinkable potential this industry has. It is clear that 3D Printing has a tremendous bright future ahead of it - it brings a new technology with endless possibilities for most of the sectors out there. It is true the fact that the technology is still growing but there is no reason to say that this industry will not revolutionize the production lines and manufacturing. The two largest and main companies in the 3D Printing sector, Stratasys and 3D Systems recently released their 2013/Q4 earnings and both of them have surpassed the expectations, increased earnings shown that another successful and prospectus year is ahead.

    To all the investors out there who are playing it SHORT on the 3D printing industry, I am glad you are making good money out of all the manipulation from the media towards the market, but bear in mind that as much as you can make, you can lose. And to all the investors out there who are playing it LONG, I shout out not to desperate and stay on the train - remember that you don't lose until your sell and if you stay on this train, your portfolios will bright on green very soon. Long investment in this industry is the safest and sure bet, it just takes time and patience but sooner or later the industry will explode and it will experience a substantial growth for the coming years. This is not a risky industry, it is clear how much opportunity it has and all the benefits it can bring to our world.

    May the industry come back to where it belongs.

    Good luck to all!

    Stocks: DDD, SSYS
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  • temenem
    , contributor
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    Nice :-)
    10 Mar 2014, 06:45 PM Reply Like
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