Seeking Alpha

H-P looking to enter 3D printing market; industry names lower

  • Meg Whitman: "We are excited about 3D printing ... We want to lead this businesses. HP labs is looking at it.." Whitman adds H-P (HPQ -0.8%), a giant in the traditional printing space, plans to enter the 3D printing market in mid-2014. 3D Systems (DDD -2%) and Stratasys (SSYS -2.4%) are trading lower.
  • Whitman suggests H-P wants to offer hardware that enables lower printing times - she observes printing a bottle can currently take 8-10 hours - and is competitively priced. 3D printing service providers are viewed as potential clients. "How do we commercialize to print faster, at lower price points, to enable service providers?"
  • 3D Systems and Stratasys have been both targeting 3D printing service bureaus and expanding their own services offerings. In 3D Systems' case, this expansion has been fueled by a healthy dose of M&A.
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Comments (13)
  • Mark Moran
    , contributor
    Comments (17) | Send Message
     
    There is only ONE way for H-P to "lead this business" - it has to buy DDD or SSYS, or both, at a significant premium to their current market value. If HP doesn't do this, someone else will; GE is a dark horse candidate.
    23 Oct 2013, 12:45 PM Reply Like
  • tomasitaylor
    , contributor
    Comments (38) | Send Message
     
    HPQ may have M&A phobia at this point.
    24 Oct 2013, 08:56 AM Reply Like
  • Izzy1
    , contributor
    Comments (193) | Send Message
     
    I smell a buyout. Keep your shares and buy more if you can. SSYS, DDD, etc are the leaders and have just become far more valuable.
    I want to state I own SSYS, DASTY & DDD. Next week they report earnings. If we get by without a major problem I believe these stocks will start to move up again
    23 Oct 2013, 01:11 PM Reply Like
  • sabalos
    , contributor
    Comments (112) | Send Message
     
    GE is the most likely.It has the cash and the financing capability.Furthermore... came reasonably early to 3d and its application to a variety of aviation and turbine businesses which has catapulted GE to the forefront inthese areas achieving significant cost reductions.This experience coupled with their leadership role in the new industrial revolution which they have dubbed THE MANUFACTURING INTERNET speaks volumes to their adoption of additive manufacturing on a grand dominant scale.If I were advising Mr.Emelt,I would say MOVE QUICKLY do not dilly dally.At 86 yrs of age my knowledge and foresight are focused on the future as GE seems to be.Let's grt cracking.
    23 Oct 2013, 01:19 PM Reply Like
  • lennyp
    , contributor
    Comments (10) | Send Message
     
    If HP wants in, what better way than acquiring one of the leaders and leveraging their IP and supply base? Sure, the prices are somewhat high right now, but things could get interesting for DDD and SSYS if their price is judged to be favorable.
    23 Oct 2013, 01:22 PM Reply Like
  • thatsthetruthofit
    , contributor
    Comments (89) | Send Message
     
    If Meg Whitman is talking about this; it's already in the works. HP will bring 3D printing to the market with a scale and reach that will make previous efforts seem small by comparison. Higher performance and lower costs will follow. This is the beginning of the mass adoption of 3D printing.
    23 Oct 2013, 01:37 PM Reply Like
  • eager1
    , contributor
    Comments (125) | Send Message
     
    I agree. HPQ does not need DDD. I have never understood why HPQ did not jump into 3D printing early on. I used to really cuss them out about it. Now I understand - they always were watching carefully what the startups did (like going into Staples) and they learned from their mistakes. The object is to be not too early or too late to the party. HPQ says they will move into the market in mid 2014, they will be a industry leader and they believe the real upturn in the industry is about 3 years off.

     

    That all sounds like intelligent thinking to me. When a seasoned CEO like Whitman talks about it in public you better believe they are way, way down the road in their roll out. Don't underestimate them. I own DDD and bought some calls today in HPQ.
    23 Oct 2013, 01:49 PM Reply Like
  • 12306121
    , contributor
    Comments (11) | Send Message
     
    I find it hard to believe that HP is a threat to any three dimensional print manufacturer. I have more problems out of my HP Inkjet than any printer I have ever owned! I firmly believe that Icahn's selling of half of his Netflix holding triggered a computer generated selloff of all of the major tech momentum stocks and the pressure on the three D stocks in the past two days will be off in a day or two and we will see these stocks testing new highs lickity split.
    23 Oct 2013, 05:57 PM Reply Like
  • jmaves
    , contributor
    Comments (9) | Send Message
     
    What could go wrong here? HP wants all kinds of stuff, and deliver on almost nothing. They have gone through more management changes than the New York Yankees.

     

    If HP ran the only water store in the middle of the Sahara on the only road through they would be broke in six months.
    23 Oct 2013, 05:58 PM Reply Like
  • Peled111
    , contributor
    Comments (43) | Send Message
     
    I don't think HP will acquire DDD or SSYS because the price will be very high .
    DDD and SSYS, have a huge competitive advantage on HP.
    i don't think HP will harm the growth of those 2 company's
    May be HP will try to acquire Arcam because of theirs unique technology ., but Arcam is so successful that i don' think this company is for sale.
    24 Oct 2013, 05:23 AM Reply Like
  • futuretrade
    , contributor
    Comments (768) | Send Message
     
    Call me crazy but I think that ONVO (Organovo Holdings Inc.) would make DDD printing a ROYAL FLUSH! (Medical 3-Dimentional printing, they compliment each other)
    25 Oct 2013, 12:13 AM Reply Like
  • eager1
    , contributor
    Comments (125) | Send Message
     
    It is hard to tell. Anything can happen but it would be unusual for HP to announce they are entering a field and then buy somebody. I think it is more like this:

     

    I think it is a repeat of the early computer days. Startups would get going with a product and the big guys like IBM or MSFT would watch them and learn from their mistakes. Then the big companies would announce they were going to enter the field in 6 months. That would make buyers with lots of money wait to see what the big guys will have to sell.
    As far as investment is concerned, IMHO you want to invest in a company in the early stages, like at the IPO stage, and then ride them up. In this case HP is telling you they will enter the field in 6 months so you buy early here too when the price is low.
    25 Oct 2013, 10:18 AM Reply Like
  • Izzy1
    , contributor
    Comments (193) | Send Message
     
    I wish HP was the company they were 30 or 40 years ago. The only way HP enters this market successfully is to buy the technology and, most of all, the people who truly understand it.
    To start from scratch and have to work around numerous patents with engineers not familiar with 3D printing would take a monumental effort and cost. This industry is moving fast and everyday brings new technology and more and more patents. I believe no matter what happens ownership in DDD, SSYS and even XONE is money in the bank in the long term. I own SSYS and DDD.

     

    Meg did a fantastic job at E-Bay, but since then has had a few personal setbacks.
    27 Oct 2013, 10:12 AM Reply Like
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