Citron doesn't believe any of the companies 3D has acquired "control transformative technologies" amid a fragmented IP environment for 3D printing, and deems its Cube consumer/enthusiast 3D printer line to be second-rate.
As evidence, it notes a Cube printer has an average rating of just 2.6/5 on Amazon from 10 reviewers, while MakerBot's (SSYS -4.7%) competing Replicator 2 has a rating of 3.8/5 from 48 reviewers.
Citron also notes recently-acquired Phenix Systems (represents 3D's entry into the metal printing market) has had less than $10M in revenue each of the last four years, and makes note of pending competition from Mitsubishi, H-P, and Epson. Likewise, The Sugar Lab (acquired in September) is deemed to be "nothing more than a husband and wife team working out an apartment in East Los Angeles."
Like Credit Suisse, Citron notes 3D trades at a major premium to Stratasys, which it considers a relatively better investment, and thinks shares would only be worth $46 even if 3D generated $2B in 2021 sales with a 20% profit margin, and paid no taxes.
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