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
- Weekly Look | iBankCoin.com
- Wealthy Chinese… and Chinese Wealth, Flee Overseas | Financial Sense
- Chart Of The Day: US Labor Force Declines By 25,000 In Past Year Despite 2.4 Million Rise In Employable Americans | ZeroHedge
- Livestream From Ukraine, Where Tens Of Thousands Return To Protest At Kiev's Main Square | ZeroHedge
- Macro Myopia and Preview of the Week's Highlights | ZeroHedge
- Bitcoin Crashes, Loses Half Of Its Value In Two Days | ZeroHedge
- Ghost Of 1929 Re-Appears - Pay Attention To The Signals | ZeroHedge
The most relevant financial news and articles from the Internets
- Paris Created A Wonderful Etiquette Guide For Using Its Subway System | Business Insider
- This Map Shows The Big Split In The California Economy | Business Insider
- 'Mad Money' Lightning Round: Facebook Has More Upside | TheStreet.com
- Another Porn Actor Has Tested Positive For HIV | Business Insider
- Will Ferrell And The 'Anchorman 2' Crew Hijacked 'SNL' To Sing... | Business Insider
- Apple's TV Innovation Will Be Unexpected | TheStreet.com
- It's A Light Week For The Economy — Here's Your Complete Preview (DIA, SPY... | Business Insider