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3D Systems (DDD) and Stratasys (SSYS) both catch downgrades from William Bair in a note titled...

3D Systems (DDD) and Stratasys (SSYS) both catch downgrades from William Bair in a note titled "Waiting for Expectations to Align With Reality." Neither firm, says Bair, appears well-positioned to be the leader of a "3rd industrial revolution ... many investors are buying shares of these two companies, at least in part, for the wrong reasons." Both are off 1.5-2% in the premarket.
Comments (24)
  • I do not like the the technical trade of DDD that took place on 5-14-13 the 14 day RSI hit my high point and I lightened up on my long position.
    16 May 2013, 08:35 AM Reply Like
  • the link goes to his twitter post, but the post doesn't include the rest of the explanation - anyone have access to the article that the rest of the SA post pulls quotes from?
    16 May 2013, 08:40 AM Reply Like
  • Ha - seems DDD and SSYS are going up too fast for some people, shorts need to be covered.
    16 May 2013, 08:46 AM Reply Like
  • Sometimes I think it's these "grading" companies that dictate the market. If DDD and SSYS isn't a 3rd industrial revolution pioneer, then who is? I think they probably said the same thing about AAPL and MSFT. I am long on DDD and will remain so.
    16 May 2013, 09:01 AM Reply Like
  • Well said. In the last couple of months the President spoke about this technology, a documentary was made on 3D printing and guns, a well known TV series had the technology as a central theme etc.
    Blair may not know it but the revolution is well on its way thanks to DDD and SSYS.
    16 May 2013, 09:54 AM Reply Like
  • PIONEER unequal LEADER!
    apple: touchscreen pioneer yesterday, running after samsung today.
    17 May 2013, 09:26 AM Reply Like
  • Maybe Bair is long XONE ???
    16 May 2013, 09:06 AM Reply Like
  • The first time I have heard The William Blair Co. say anything on the 3D market or any of the firms involved in the business. Although I am long on these positions and will remain long. This process is the future of manufacturing. I don't care if they lead the world or if someone buys them. In the long run these stocks will increase significantly.
    16 May 2013, 09:28 AM Reply Like
  • I have given this a little more thought and starting to think along the same lines as jbehre. William Blair may be sitting on a ton of shorts or they gave some bad advice to important clients about shorting the stocks
    16 May 2013, 09:48 AM Reply Like
  • If you believe a single "analyst's" comment about this industry I also have some oceanfront property in Arizona that I would like to sell you. I have been into stocks for about a year now and one thing that is so obvious is, analysts are used as a device to move the market in accordance with what is desirable for that firm. So they say they aren't industry leaders.....so they can help shorts cover or so they can increase their position. It's very simple.......Take what the analysts say and simply do the opposite. Please downgrade these stocks so I can increase my position. I love it... Long DDD XONE
    16 May 2013, 10:56 AM Reply Like
  • Has Bair been under a rock and just get out? Worse anaylysis I have ever seen.
    16 May 2013, 11:17 AM Reply Like
  • Been watching this industry closely and these two stocks for a little over a year now and this really is the first rational piece on it. The cart is definitely before the horse. I'm not a bear saying this won't be a technology revolution but we are still years away from this being something in everyone's home. It has definitely helped speed stuff up all the money being thrown at 3D printing but it is still niche and these P/E's are crazy high. SSYS is over 200!
    16 May 2013, 11:45 AM Reply Like
  • I too have been closely watching these two stocks and noticed the reference to "in everyone's home". I'll wait for residential applications, thank you! Have you ventured out to review all the medical applications that are being advanced over the past three years using this technology? Leaps and bounds. I'll continue to invest for the Long haul!!!
    16 May 2013, 11:58 AM Reply Like
  • I remember thinking that way about the Netscape IPO in 1995....and missing out on a whole lot of profit between then and 1999!
    16 May 2013, 01:08 PM Reply Like
  • why wait for them???
    residential applications have been published months, if not a year ago!! my friend's mum but herself a 3d printer half a year ago.

     

    applications in the creative arts are endless.
    lotsa consumer offerings already!

     

    but i guess since am in IT myself i might be less disturbed my financial technewbs - those are the ppl who sell apple cuz "they are not as 'innovative' _anymore_" - please - get real! those are the ppl who will find microsofts patent on navigating a website with a keyboard "innovative". those are the ppl who think connecting a USB HID to a smartphone is innovation when in fact it's more like painting an existing blue door red!

     

    if you ask apple fanboys, they can't even tell you why they believe their fon used to be innovative. they'll cite "first smartphone" and stuff like that....

     

    it's like ppl selling microsoft cuz win8 sucks for many ppl - it doesn't really get more dull!

     

    as if microsoft _had_ to sell win8. microsoft won't care for another 1-2 years whether you downgrade to win7 or not.
    17 May 2013, 09:35 AM Reply Like
  • Residential applications from 18 months ago are now "ancient history" if you follow the markets. I'll wait for both an affordable model that can print out more than useless novelty widgets and products that can be reproduced at the same or less cost than can be purchased locally.
    In the game of life, there are needs and wants. Do I need a 3D printer?
    9 Jun 2013, 12:20 PM Reply Like
  • Total disconnect between the PE ratio and growth prospects - 105% growth is a stretch for any stock. Sooner or later they come back down to earth - think Apple, Cisco, et al.
    16 May 2013, 12:25 PM Reply Like
  • Ahhh yeah think apple.....think about getting in on the ground floor......think about millions of dollars......what is your point exactly????
    Please explain why you think growth slow down for these stock is imminent
    16 May 2013, 10:05 PM Reply Like
  • Staples announced they will be the first to sell 3D-Systems machines; when that takes place 3D printers will appear in many homes; and, IMHO they may appear before the end of the year; I am also very impressed by the presence of ONVO in the 3D-printing of live tissues for drug approval testing and growing better grafts.
    I am staying long on DDD, and ONVO.
    16 May 2013, 12:38 PM Reply Like
  • Likewise am long ONVO - but view as really risky speculation. The huge overhang of cheap stock from the original shell, PIPE transactions, warrants exercise etc. is scary - could be seeing classic pump & dump (as alluded to in yesterday's "Organovo: Get Rich Or Die Tryin'" article on SA). But the upside potential is enormous as well.

     

    Every so often technologies come along that change the world, and there's a phase in the markets where valuations go crazy, with fortunes made in the process. You don't win the lottery unless you at least buy a few tickets...
    16 May 2013, 01:59 PM Reply Like
  • There are so many applications for this technology, present and future, it will be hard not to make some profit from investing in it. ONVO is in good place for medical applications and DDD for manufacturing. Last time something big like this was introduced was intuitive surgical (ISRG) robotic surgery machine. Check a ten year chart. I am long and patient.
    16 May 2013, 10:29 PM Reply Like
  • 3-D printing: it's a good story, and so is "It's A Wonderful Life" and with both there's something for everyone! Which is probably why so many people are buying (DDD) {and (SYS) too}, without really knowing what the real story is.

     

    The technology is good, and promising, but more is needed to really believe that this could be a world changer. The insiders seem to get as much out of trading their stock as they do out of running the company, so that makes me cautious.

     

    I've been in and come out with a good profit a while ago, and maybe I'll own it again some time, but the price needs to come back some first, as far as I'm concerned.
    17 May 2013, 11:47 AM Reply Like
  • Your points are reasonable - those are the risks in this sort of thing. But, if it really does become a world changer, by the time the technology is more fully developed and many of the questions answered, many fortunes already will have been made. And while handsome returns will still be there for the making, they will tend to expand in more arithmetic than exponential orders of magnitude....
    Valuation is a really difficult thing in these situations - hard to know what makes sense....but, anyhow, glad to hear you've made money already.
    17 May 2013, 03:06 PM Reply Like
  • If analysts predictions on various stocks were as accurate as even 50%, in a year or so they wouldn't be analysts....they would be independently wealthy billionaires living off the fat of the land...

     

    I, too, am staying long on ONVO and DDD....
    18 May 2013, 03:49 PM Reply Like
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