Seeking Alpha

3D printing stocks skyrocket as tech short-squeeze continues

  • 3D Systems (DDD +14.2%), Stratasys (SSYS +7.3%), Voxeljet (VJET +27.6%), ExOne (XONE +17.9%), Proto Labs (PRLB +11.7%), Camtek (CAMT +9.1%), and Organovo (ONVO +6.5%) are all taking off as heavily-shorted tech names rally for the second day in a row.
  • 34% of 3D Systems' float was shorted as of June 13. The figure is 15% for Stratasys, 16% for Voxeljet, 32% for ExOne, 12% for Proto Labs, 5% for Camtek, and 26% for Organovo.
  • Also: 3D Systems has canceled a Pac Crest conference presentation. However, Pac Crest says this was simply because 3D didn't have enough execs to attend.
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Comments (14)
  • skyboy102
    , contributor
    Comments (89) | Send Message
     
    Love it when shorts et squeezed. Too bad they don't just invest real capital in real companies for the real economy and save the gambling for the casinos where it belongs.
    1 Jul, 12:25 PM Reply Like
  • SoCalNative
    , contributor
    Comments (488) | Send Message
     
    Shorts have their place and are necessary. C'mon.
    1 Jul, 01:46 PM Reply Like
  • DrGarnicus
    , contributor
    Comments (92) | Send Message
     
    They do have their place, and I would say it sounds like skyboy102 is referencing people that solely seek to short, as opposed to shorting when it proves beneficial.
    1 Jul, 02:02 PM Reply Like
  • cdgingrich
    , contributor
    Comments (67) | Send Message
     
    Nothing wrong with being short. It's lying about stocks that makes me love to see shorties get killed.
    1 Jul, 02:08 PM Reply Like
  • AnLe41
    , contributor
    Comments (63) | Send Message
     
    It's just the way the markets work. Those shorting (should) know the risks they are taking, and those trying to benefit from short squeezes in stocks that are heavily shorted also know what they are doing. I just realized a 35% gain today, after buying DDD when it dipped under $50 a few weeks ago. My thesis was that short gamblers would jump on board DDD again far too early, and then be short squeezed on any uptick in the market.

     

    DDD may squeeze higher in the next couple of days, considering that it would take more than 10 days of average trading volume for all shorts to cover their positions, but today's price spike was too tempting to resist and capture the gain. Short squeezes are the best!
    1 Jul, 01:03 PM Reply Like
  • No Lo Entiendo
    , contributor
    Comment (1) | Send Message
     
    Yep I'm with you. I took a long position at $46, expecting it to slide back up over time. But the squeeze was on, and technicals got too hot. I set a tight stop earlier today that had me sell at $68. I'll take the gain and look for a new entry point once interest rotates again.
    1 Jul, 06:44 PM Reply Like
  • aow
    , contributor
    Comments (134) | Send Message
     
    Thing is DDD has been trading on high volume today and yesterday. Not saying the squeeze is up but days to cover aren't much use when they're trading several times over avg volume.
    1 Jul, 07:33 PM Reply Like
  • Robert Duval
    , contributor
    Comments (4071) | Send Message
     
    Seems to me you all are total hypocrites. You are not "investing" in any sense and providing capital for a companies growth. You are not creating or developing anything.

     

    You are making a bet solely based on other people getting hurt via a short squeeze.

     

    So stop playing the morally superior game.

     

    No positions now or prior in DDD or the others. Just saying.
    1 Jul, 10:13 PM Reply Like
  • Bill Maurer
    , contributor
    Comments (4967) | Send Message
     
    the company did just have a secondary, so it is possible that some people got in on that and did provide capital for the company.
    1 Jul, 10:16 PM Reply Like
  • AnLe41
    , contributor
    Comments (63) | Send Message
     
    All investors that buy existing shares in the stock market are speculating for a capital gain, which can be for shorter or longer term. It doesn't matter if you buy existing shares of a company and sit on them for 10 years - you don't provide any additional capital to develop the company.

     

    The only way you would contribute capital to a company's growth, is if you participate in a capital increase, i.e. a new share issue (or a debt instrument for that matter). I therefore don't see any moral difference between my long term holdings (e.g. in AAPL, BIDU, MKL etc) vs. shorter term speculative plays. Neither is it less moral to short a stock, just a different game where you bet on the imminent devaluation of a stock, and you should then also be aware of the underlying risks, as a shorter can more easily run his account on a margin (less assets in the account than it would cost to fill the short position), and can thus be forced to close the position by a margin call.

     

    No moral, just the rules of the game.

     

    I was hit earlier this winter by a long position in HLF, where the shorts did win at that time. Good for them.
    2 Jul, 08:05 AM Reply Like
  • Bill Maurer
    , contributor
    Comments (4967) | Send Message
     
    Been detailing this potential short squeeze for weeks, and investors have surely been rewarded. $SCTY was also the other name I detailed, and it's up about 40% as well.
    1 Jul, 01:19 PM Reply Like
  • AnLe41
    , contributor
    Comments (63) | Send Message
     
    I owe you a big thanks, Bill. I read your articles on the potential short squeeze as input to my decision to buy DDD when the stock bottomed out just below $50. Worked out faster than I had imagined.
    2 Jul, 07:56 AM Reply Like
  • josgroels
    , contributor
    Comment (1) | Send Message
     
    My dear the stock market has nothing to do with the real economy.
    We are all opportunists and rationalise our speculations.
    I damn 'll lay a 10% trailing stoploss under DDD as might be bubbling again.
    1 Jul, 01:38 PM Reply Like
  • nortic
    , contributor
    Comments (22) | Send Message
     
    My approach to this sector is to play it from the long side in a leading machine tool manufacturer that has a blue chip aero and auto client base and that is introducing additive capabilities to their existing high-end tools. I think these new hybrid manufacturing tools may be the wave of the future.

     

    I think the shorts will have a bone to pick with the traditional 3D print industry for quite a while, as long as valuations remain stretched.
    1 Jul, 02:29 PM Reply Like
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