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  • 3D Systems (DDD -9.1%) is finishing with big losses yet again. Shares are down 18% on the week, thanks in no small part to accounting concerns. Stratasys (SSYS -2.6%) is also lower. A CNET column this morning discussed remarks from industry experts about the future of 3D printing. "We're still living in a bubble a little bit," declared the CEO of 3D printing marketplace Shapeways, due to the fact the average person still isn't aware of what 3D printers can accomplish. [View news story]
    3D will have to prove in court that the accounting they filed is correct and the statements they made on their calls about organic growth and not stuffing ZCorp resellers were truthful. They will have to bring in some independent parties to affirm their accounting and their statements on their earnings calls. I hope 3D is asking their auditor to affirm their audit opinion.
    Nov 16 11:34 AM | Likes Like |Link to Comment
  • 3D Systems: Has The Printer Jammed? [View article]
    I have not been contacted by the company as a target of legal action. I have thought about this long and hard and I have decided to delete me account in advance of the company potentially bullying me with a cease and desist filing or something like that.

    All I will say is that where there is smoke there is fire. Companies normally only battle the short sellers when they have something to hide and want to prop up the stock. The shady behavior of 3D Systems that have been discussed at length on SA, if shown to be a signal of actual wrongdoing, will only slow the development of the market for 3D printing technologies. I suspect SSYS and Objet will continue to innovate as DDD flounders.
    Nov 16 11:29 AM | Likes Like |Link to Comment
  • 3D Systems (DDD -9.1%) is finishing with big losses yet again. Shares are down 18% on the week, thanks in no small part to accounting concerns. Stratasys (SSYS -2.6%) is also lower. A CNET column this morning discussed remarks from industry experts about the future of 3D printing. "We're still living in a bubble a little bit," declared the CEO of 3D printing marketplace Shapeways, due to the fact the average person still isn't aware of what 3D printers can accomplish. [View news story]
    Now 3D wants to threaten legal action against people doing the on the ground research, going through the cash flow statement and balance sheet and then sharing their views? I don't think this is going to end well for 3D systems.

    ---

    3D Systems Announces Conference Call and Webcast to Discuss Recent Articles

    GlobeNewswire
    ROCK HILL, S.C., Nov. 15, 2012 (GLOBE NEWSWIRE) -- 3D Systems Corporation (NYSE:DDD) announced today that it plans to hold a conference call and simultaneous webcast to discuss, fact-check and clarify several materially inaccurate statements and conclusions made in recently published articles related to various matters including its calculation of growth, accounting methods and acquisition activities on Monday, November 19, 2012, at 8:30 a.m. Eastern Time.

    "We are aware of certain recent articles and their materially inaccurate and misleading conclusions. We reaffirm the accuracy of our public filings and accounting methods in all respects, and are pursuing legal remedies to hold those responsible parties accountable for what appears to be malicious, irresponsible and self-serving articles. We look forward to discussing, fact-checking and clarifying these inaccuracies for the benefit of our shareholders, customers and partners, who we believe have been irrevocably harmed by these articles," said Abe Reichental, President and CEO of 3D Systems.

    Date: Monday, November 19, 2012 Time: 8:30 a.m. Eastern Time Listen via Internet: investor.3dsystems.com Participate via telephone: Within the U.S.: 1-866-543-6407 Outside the U.S.: 1-617-213-8898 Participant code: 18116839
    The recorded webcast will be available beginning approximately two hours after the live presentation at investor.3dsystems.com.

    Forward-Looking Statements

    Certain statements made in this release that are not statements of historical or current facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to be materially different from historical results or from any future results or projections expressed or implied by such forward-looking statements. In addition to statements that explicitly describe such risks and uncertainties, readers are urged to consider statements in the conditional or future tenses or that include terms such as "believes," "belief," "expects," "estimates," "intends," "anticipates" or "plans" to be uncertain and forward-looking. Forward-looking statements may include comments as to the company's beliefs and expectations as to future events and trends affecting its business and are necessarily subject to uncertainties, many of which are outside the control of the company. The factors described under the headings "Forward-Looking Statements," "Cautionary Statements and Risk Factors," and "Risk Factors" in the company's periodic filings with the Securities and Exchange Commission, as well as other factors, could cause actual results to differ materially from those reflected or predicted in forward-looking statements.

    About 3D Systems Corporation

    3D Systems is a leading provider of 3D content-to-print solutions including 3D printers, print materials and on-demand custom parts services for professionals and consumers alike. The company also provides CAD software and plugins, and affordable consumer create-and-make printers, apps and services. Its expertly integrated solutions replace and complement traditional methods and reduce the time and cost of designing new products by printing real parts directly from digital input. These solutions are used to rapidly design, create, communicate, prototype or produce real parts, empowering customers to create and make with confidence.

    More information on the company is available at http://www.3DSystems.com.

    To experience our entire range of 3D content-to-print products and services please visit http://www.printin3D.com, http://bit.ly/Qhbkq6, http://bit.ly/SQ5Yhd, http://www.zcorp.com, http://bit.ly/QhbnlO, http://bit.ly/SQ5Yhg, http://www.alibre.com, http://bit.ly/Qhbkq8, http://bit.ly/SQ5Xd0, http://www.botmill.com, http://www.rapidform.com, http://www.cubify.com, http://bit.ly/Qhbkqb, http://bit.ly/SQ5Xd1, http://bit.ly/QhbkGq, http://bit.ly/QzvyZf, http://www.sycode.com, http://bit.ly/QhbkGr, blog.3dsystems.com, or via email at moreinfo@3Dsystems.com.

    The 3D Systems Corporation logo is available at http://bit.ly/SQ5Yxz

    CONTACT: Investor Contact: Stacey Witten 803-326-4010 Email: Stacey.Witten@3dsystem... Media Contact: Cathy Lewis 781-852-5007 Email: Cathy.Lewis@3dsystems.com
    Source: 3D Systems Corporation
    Nov 15 07:57 PM | Likes Like |Link to Comment
  • 3D Systems: Has The Printer Jammed? [View article]
    All his claims are based on his examination of the public filings. What legal action could DDD take against him?
    Nov 15 11:44 AM | Likes Like |Link to Comment
  • 3D Systems: Has The Printer Jammed? [View article]
    Or Piper is angling for some banking business... If DDD keeps on acquiring they will probably do another equity raise to fund the purchases. Will be Especially true if they try to buy a big competitor like EOS. Piper was on the IPO of Proto Labs. When Piper upgraded from underweight they finally got to ask some of the first questions on the call. Quite frankly, I don't think any of the sell side analysts follow the company that carefully and it is not their fault. 3DP is still a small niche, so most of these analysts cover other companies that are very different than DDD. Piper covers tech comm hardware and networking stocks and 3D systems? How do those two fit together? I am sure the analysts are getting lots of interest inbound on DDD and SSYS as longs and shorts. So maybe a few of them will start to really put in the time to not just repeat what management tells them but do their own fundamental work on the 3D printing industry. I think they would discover that DDD is pretty poorly perceived by its customers, its resellers, and other industry participants.
    Nov 15 01:14 AM | Likes Like |Link to Comment
  • 3D Systems: Has The Printer Jammed? [View article]
    Even the Motley fool just syndicated a blog post on DDD that was tepid. http://bit.ly/UFpqxa

    They have pumped the 3D printing space to individual investors for all of 2012.
    Nov 13 07:17 PM | Likes Like |Link to Comment
  • 3D Systems: Has The Printer Jammed? [View article]
    To Nipson:

    If his fund is balanced (I think that means a mix of bonds and equity in his marketing docs) why has he had around 10% of his fund in DDD for a long period of time? I commend the returns he has put up as DDD has gone from the single digits to $45 over the last few years with a lot of volatility over that period. That kind of total return is nothing to criticize. Some of that return is well earned from DDD becoming a bigger company based on revenues & earnings (organic growth with the market that was cyclical and maybe secular, from rolling up service bureaus to improve margins in that segment, and to a greater extent from acquisitions). Some of the return has come from multiples increasing in the 3D printing niche as attention to the 3D printing industry has increased in the press (Economist, etc.) and investor community (CNBC, Bloomberg, etc.). A large portion of this increase in awareness has been driven by Abe being on a constant press tour. That may be a strategically smart move to speed awareness of the industry and it may be smart for him to get the stock higher to do more acquisitions with his expensive stock.

    However, if the performance of the stock that Villere enjoyed was created by management crossing over the line on accounting, making false statements on earnings calls, making false/misleading comments to investors in 1 on 1 calls, and feeding inside information to top holders of the stock then we have a problem. I can't prove the 4th part of the last sentence but the amount of dishonesty management has shown on their calls with investors directly and after earnings releases does not allow me to rule out option 4 as a possibility. This is a team that has shown no hesitation when it comes to lying to investors and obfuscating the underlying flaws in their current business operations.

    You are right that I would have earned many times my money if I had followed Villere into owning this stock. I just could never sleep well at night investing behind a management team with such a history of shady behavior. If I wanted to bet on 3D printing being a big trend over the next 10 years I would own SSYS. That management team at least has integrity, helped invent the leading technology in the professional and production segments, and is not overly promotional.

    You are right that my short has taken a beating. I will be the first to state that my timing was off this time. The last two times DDD got hurt in April and July 2011 my timing was much better. I still firmly believe that once the dust settles on DDD this will be a $20 stock again. If it actually draws an SEC investigation then $10 or below sounds more likely to me. The momentum and day trader types in DDD will run for the hills at the first sign of fundamental weakness in DDD. If an SEC investigation does not come then I suspect management decide to reset the bar in the next few quarters and come partially clean with investors. This will bring about a April and July 2011 type leg down in the stock. At that point I will suspect Abe and Damon to issue themselves new options at lower prices and get right back on the television to press the stock up again.

    If you want to bet on 3D printing being a big business bet on SSYS/Objet. They are a high integrity, realistic about where the technology stands today, and have better products that are taking share from DDD/ZCorp. I am guessing the long SSYS, short DDD trade has taken off recently among professional managers that have funds small enough to make this a meaningful position. With that trade you hedge out market growth in 3D printing and just get to bet against the rotten business specific aspects of DDD.
    Nov 13 01:38 PM | Likes Like |Link to Comment
  • 3D Systems: Has The Printer Jammed? [View article]
    For those individuals out there having trouble borrowing DDD to short, here is a little chart of the cost and availability I have seen the last few weeks:

    1st Week of November - 16%, <25K shares available (~$1MM)
    4th Week of October - 18%, <50K shares available (~2MM)
    3rd week October - 15%, <50K shares available (~$2MM)
    2nd week October - 16%, <125K shares available (~$5MM)
    1st week October - 19%, >150K shares available (~$6MM)
    4th week September - 17%, >150K shares available (~6MM)

    There is not enough borrow available out there for bigger multi-hundred million dollar hedge funds to short this to a large enough position size to make this worth it. I suspect the borrow is so hard because the insiders and quasi-insiders in the top 10 holders do not lend their stock for borrow. That is a smart move by them.
    Nov 13 01:16 PM | 2 Likes Like |Link to Comment
  • 3D Systems: Has The Printer Jammed? [View article]
    From Grey Wolf's Report "What do Loewenbaum, Villere, Duff, Moore, and Kever have in common? They were all DDD board members for multiple years prior to the 2003 SEC investigation into DDD revenue recognition practice"

    Villere - quasi-insider given previous board seat in the past - Has been on Bloomberg talking up the stock while he has been selling
    Sold 826K shares in 3Q12
    Sold 898K shares in 2Q12
    Sold 126K shares in 1Q12

    Walter Lowenbaum - Chairman
    Sold 40K shares - Disclosed on 11/5/12

    Abe's holdings are tougher to understand. Will post more later on the option he exercised this year, his options plan, and his selling over the last 2 years. Need to go confirm what I have in my notes and go through the disclosure.
    Nov 13 11:41 AM | Likes Like |Link to Comment
  • 3D Systems: Has The Printer Jammed? [View article]
    You have to dig a little to get to the insider selling. The chairman has been selling and some of the quasi-insiders in the top 10 holders have been selling in the last 9 months. Will post some more on this below as I dig it up.
    Nov 13 11:05 AM | Likes Like |Link to Comment
  • 3D Systems: At The Peak Of Inflated Expectations [View article]
    Looking forward to your thoughts on it. I am sure you will have some great takeaways to share.
    Oct 31 10:41 AM | Likes Like |Link to Comment
  • 3D Systems: At The Peak Of Inflated Expectations [View article]
    I was asked to take the report down since Gray Wolf told me I do not have permission to share it. So the link above will no longer work.
    Oct 31 10:39 AM | Likes Like |Link to Comment
  • 3D Systems: At The Peak Of Inflated Expectations [View article]
    The file from Gray Wolf disappeared off of Scribd. Here is a link where you can download it.

    http://bit.ly/SaYCV5
    Oct 30 06:27 PM | Likes Like |Link to Comment
  • 3D Systems: At The Peak Of Inflated Expectations [View article]
    Also, I just tried to access the piece and it looks like the authors took it off of Scribd. Let me see if I can find the electronic copy I downloaded and printed.
    Oct 27 09:46 AM | Likes Like |Link to Comment
  • 3D Systems: At The Peak Of Inflated Expectations [View article]
    This is a great response to the piece and comments so far. Without question the most counterargument. I will have to spend some time prepping a response to this to maybe be as thoughtful as Douglas. Looking forward to discussing DDD more with you.
    Oct 27 09:44 AM | Likes Like |Link to Comment
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