3D Systems: Buy or Balk?
After reaching over $44 a share last week 3D Systems Corporation (DDD) has fell 12% to close today at $38.27. No real news has been published about 3D since July when the company reported a stellar conference call and hit a new 52-week high.
Since July 3D Systems shares have cooled down 14.6%. 3D printing in general is definitely the future and 3D Systems is going to continue to enjoy the fanfare and profits of a growth industry. We learned during the July Q2 call that revenue increased 52% to $83.6 million when compared to Q2 2011 on 20% organic growth. The company reported growth from all its revenue categories, led by a 112% increase in its printer units sold. 3D Systems please the Street with its 2012 guidance expecting its revenue to be in the range of $330 million to $360 million.
There's no doubt profit taking could be pushing down 3D Systems. DDD has increased 165% already in 2012 and that's including the recent pullback.
Looking at the DDD chart, every time price has touched the bottom of its rising channel, a rally has ensued. Price just touched the bottom of its rising channel today. Another reason to buy DDD in the short term is that its competitor Stratasys (SSYS) printed a nice looking hammer candle today - shares of SSYS hit a low of $59.32, but turned on a dime and rallied all the way back up to $64.73 to close out the day. DDD usually trades in tandem with SSYS, so we think DDD will follow suit.
MASTERY Bottom line:
After a 14% drop since hitting a new 52-week low in July, 3D Systems is a stock to watch.
3D Systems (DDD) Charts
Best of the Blogs
Scanning and identifying the best blog entries every hour
- Draghi Now Has All the Ammunition He Needs for QE - Implementation Still a Problem | Financial Sense
- Sorry Folks, The North Koreans Hacked The "Global Recovery" | ZeroHedge
- The Biggest Economic Story Going Into 2015 Is Not Oil | ZeroHedge
- Why The US Is About To Be Flooded With Record Oil Production Due To Plunging Oil Prices | ZeroHedge
- PUTIN, NORTH KOREA, OIL...HAPPY HOLIDAYS | ZeroHedge
- Further Proof That Abenomics Is A Total Disaster: Japan Car Lobby Admits "Sense Of Panic" | ZeroHedge
- I'm Not Buying It - Not The Wall Street Rip, Nor The Keynesian Rap | ZeroHedge
The most relevant financial news and articles from the Internets
- Streetinsider.com's Hot Lunchtime... | StreetInsider.com
- Lego Is for Girls | BusinessWeek
- How To Get The Perfect Shave At Home | Business Insider
- ... | StreetInsider.com
- Uber Should Not Raise Prices During Emergencies | Business Insider
- SORRY ZUCK: Teens Have Once Again Declared That Facebook Isn't Cool (FB) | Business Insider
- Carl Icahn Offers To Keep The Trump Taj Mahal Open (IEP) | Business Insider