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
- Goldman Issues Q&A On Tapering: Says "Not Yet" | ZeroHedge
- Visualizing The Silver Squeeze | ZeroHedge
- Dollar Bull Run | ZeroHedge
- Why Japan Is Bad For The World | ZeroHedge
- The Last of the 2008 Doomsday Scenarios Is Fading Away | Financial Sense
- STTG Market Recap May 17, 2013 | FundMyMutualFund
- Leading Employment Indicators Suggest Higher Highs Into the Fall | Financial Sense
The most relevant financial news and articles from the Internets
- Abercrombie Employees Have To Spritz Clothes With Cologne Every Hour | Business Insider
- The 8 Richest People In Baseball | Business Insider
- Watch The Trailer For The Scathing Drama Creating A Huge Buzz In China | Business Insider
- Yahoo CEO Marissa Mayer Has Scheduled A... | Business Insider
- Jon Stewart Calls The Media 'Concussed Goldfish' Over Fruitless... | Business Insider
- 10 Reasons to Stop Being a Jerk and Drink a Fruit Beer | TheStreet.com
- 12 Scientific Reasons Why You're Not Earning More | Business Insider