"DDD is one of so many unbelievably great shorts out there right now.," says Whitney Tilson in his latest note. His comments have led 3D Systems (DDD -0.8%) to turn negative, after initially trading higher in response to FBR's coverage launch.
Tilson criticizes 3D's multiples - shares trade at 17x trailing sales, 64x EBITDA, and 63x 2014E EPS - and calls the company a better short than it was when Citron Research declared it one, given a 26% rally and (in Tilson's view) deteriorating fundamentals. 3D recently raised its 2013 revenue guidance, but lowered its EPS guidance due to aggressive spending plans.
The talkative hedge fund manager admits he has "sure taken my lumps on the short side recently," but nonetheless calls the current market "the best environment to find great shorts since March 2000 (even better than Oct. 2007).”