3D Printing Stocks GIVE backThe holiday season is in full swing and I’m asking investors in 3D Printing Stocks to GIVE to a worthy charity.


“No one has ever become poor by giving.”

 ~Anne Frank

This obviously hasn’t been a good year for most 3D printing stocks and many investors in the space are no doubt wishing for a return to those crazy days of 2013 when all you could do was make money in the space. There’s risk for financial loss in any investment – something we’ve all experienced at one time or another. But let’s face it, people investing heavily in the market…in any class of equities, are typically more financially fortunate (even after a bad year for their portfolios) than most of the population.

When 3D Systems broke former support levels on December 8th and continued its plunge, pulling down other stocks in the space (along with my account balance), I thought….”This is terrible- it can’t get any worse than this!”  When I returned to my senses later that evening I realized the simple truth that “it”, can get worse…much worse.

Now, “it” is not about losing money in a temporarily out-of-favor investment space as 3D printing stocks have been for most of 2014. “It” is about our quality of life…having the simple needs of food, clothing and shelter met…the most basic of things that I doubt anyone reading this struggles with on a daily basis. There are thousands of soldiers now home with traumatic limb and brain injuries or mental health issues. Their tour in the Middle East may be over but their lives go on- forever changed, forever wounded physically or psychologically. Children fighting cancer and adults confined indoors by illness, age, or disability…the list of people for whom life is a struggle every day goes on.

So, for those that really are in need, for whom “it” really cannot get much worse, I’m asking you to give.

There are now over 10,000 subscribers to this site according to my  WordPress admin. panel:

Subscribers to 3D printing stocks

and I’m asking each and every one of you to give to a worthy charity this holiday season. It doesn’t matter what your religious views are, or if you’re conservative, liberal, black, white, gay, straight, red state, blue state… this is the time of year to GIVE to those less fortunate.  


Here are some worthy causes you can give to right now.

E-NABLING THE FUTURE: A network of passionate volunteers using 3D printing to give the World a “Helping Hand.”

The American Red Cross

The American Cancer Society

St. Jude Children’s Research Hospital

The Wounded Warrior Project

Alzheimer’s Foundation of America

Fisher House Foundation Fisher Houses provide military families housing close to a loved one during hospitalization for an illness, disease or injury.

American Kidney Fund

Meals On Wheels Association of America  helps keep 2.5 million seniors healthy, safe and living independently in their own homes each year.

 

If none of the above appeal to you, I’m sure you have a worthy local charity or know a deserving person or family in financial need right now that you can help.

 

So I’m asking you, if you haven’t done so already,  please GIVE this holiday season.  Be charitable. Be generous. You can make a positive difference in someone’s life.

 

“From what we get, we can make a living; what we give, however, makes a life.”

~Arthur Ashe


 

Graphene 3D Lab Inc. gary siig

3D Printing Mutual FundAs the well known pure play 3D printing stocks continue to make new lows and end of year tax loss selling in many of these stocks is upon us, I thought I’d check my balance in the 3D Printing and Technology Fund (see web site) which launched earlier this year.

This is a long term  investment for me, so I don’t check my balance often. In fact, this was the first time in months for me to log into my account there.

Given the weakness in the large pure play 3DP stocks, I braced myself for a big decline in my account balance. I was pleasantly surprised to see my balance wasn’t nearly the train wreck I was prepared for and immediately processed an electronic funds transfer to double my position in the fund.

The chart below pretty much tells the story.

3D Printing and Technology Fund chart

 

I wrote about the 3D Printing and Technology Fund when it was Morningstar’s #1 performing fund back in July (see article) and concluded:

For investors looking to “leave the driving” to fund managers that have an insider’s access to the industry and to diversify their 3D printing portfolio, TDPNX may be the ultimate fit.

I guess I forgot about that statement when I was logging in to check my account balance today!

The fund not only spreads risk across the 3D printing industry, it invests in high tech stocks outside of 3D printing. GE and ALGN are two of the funds top ten holdings in the fund’s most recent fact sheet.

The fund is managed by the father and son team of Alan and John Meckler who are well known in the 3D printing industry. As many reading this may already know, Alan Meckler is also the CEO of MecklerMedia Corp. (MECK),  the producer of the Inside 3D Printing Conference and Expo events worldwide.

No wonder my 3D Printing and Technology Fund account balance was a pleasant surprise when I checked it today.

 

Coming soon: An update on Graphene 3D Lab (GGG.V / GPHBF)

 


Graphene 3D Lab Inc. gary siig

 

 

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Disclosure: I am long shares of the 3D Printing and Technology Fund. I was not paid by the fund, any company, or third party for this article.

Disclaimer: Opinions expressed are my own and should not be considered investment advice nor an invitation to buy or sell shares of any company mentioned on this site. Investors should perform their own due diligence and consult with a Registered Investment Advisor prior to making any investment decision. See sidebar for full disclaimer.

CamtekIn news this morning, Camtek (CAMT) announced the company was chosen as the Automated Optical Inspection (AOI) System supplier for a leading semiconductor manufacturer.

 

Camtek states that “Initial orders from Camtek’s new Eagle product line totaling $2.8 million have been received and the installation of these systems will be completed in the coming weeks.”

I believe “initial orders” implies there’s more to come.

I encouraged subscribers to buy Camtek shares under $3.00  Camtek (CAMT) selloff overdone following Q3 earnings, and this contract win further supports my belief that this company is undervalued based on fundamentals.

Camtek is also launching an innovative, patented, inkjet-based 3D printer for the precise application of solder mask to printed circuit boards. The “Gryphon” printer recently passed beta testing and is available for PCB manufacturers to demo at the company’s California center. The company believes PCB manufacturers will realize considerable savings in the manufacturing of printed circuit boards using the Gryphon, and that the solder mask deposition by the Gryphon printers is superior in quality to current technologies in use.

Only 2 analysts follow the company, and they have an average EPS estimate of .33/share for 2015, representing 120% growth in earnings with a forward PE of 10.  While it remains to be seen if Camtek can grow EPS as rapidly as analysts are projecting, the company’s forward growth will be 100% organic with no dilution to shareholders. The company has a strong balance sheet and no long term debt which should facilitate commercialization of the Gryphon printer in 2015.

 


 

Graphene 3D Lab Inc. gary siig

 

Follow me on Twitter: @3DPrintingStock

Subscribe to 3DPrintingStocks.com for free (box in left upper corner of page) to get news, articles, interviews, and actionable information on 3D printing stocks delivered to your inbox.


 

Disclosure: I am long shares and options of CAMT. I was not paid by any company or third party for this article.

Disclaimer: Opinions expressed are my own and should not be considered investment advice nor an invitation to buy or sell shares of any company mentioned on this site. Investors should perform their own due diligence and consult with a Registered Investment Advisor prior to making any investment decision. See sidebar for full disclaimer.

successful tradingI’m happy to announce that I’m partnering with Harris Shapiro, publisher of The Focused Stock Trader as we head into 2015.

I’m inviting all my subscribers to a free 4 week trial (see below) to experience and verify firsthand how profitable the service can be for them.

I’ll be publishing research articles on promising stocks- mostly in the biotech, medical/pharmaceutical space, where my former career in health care management and hospital administration gives me additional insight in these high-growth industries.

I will continue writing about 3D printing stocks here on 3DPrintingStocks.com as well…trust me, I’m not going away!  The 3D printing industry never ceases to amaze me as it continues to move toward full scale manufacturing capabilities while new materials for consumer and industrial applications are developed and commercialized.

Having said that, there is a universe of great biotech/medical/pharma and tech stocks out there that I’ve wanted to write about for some time now, and I’ll be doing that on The Focused Stock Trader going forward.

The headline “Successful Trading with a Documented 400% YTD Return” isn’t a typo either in case you were wondering. Harris Shapiro at the Focused Stock Trader has the best track record for successful trading of anyone I know and with 30+ years in the market in addition to my publishing here at 3DPrintingStocks.com, I know a lot of stock traders.  All trades are public for subscribers of The Focused Stock Trader with recommended entry prices, date of entry, current price, and selling/exit prices fully documented.

Harris has the uncanny ability, (some would rightfully call it a gift), to pick stocks on the verge of a big move for substantial gains. I’ve seen him do this over and over with stocks from almost any industry, ranging from large caps to microcaps, or in select IPOs as the company is exiting their quiet period.


Fully Documented Gains

  • The short term trading recommendations portfolio at The Focused Stock Trader started with $50,000 on January 1, 2014 and is now worth $258,635 for a 417% gain YTD
  • The longer term portfolio began the year at $100,000 and now stands at $293,054 for a 193% gain YTD

Combined, the two trading portfolios began the year at $150,000 and are now worth $551,689.


 

This is the definition of “Successful Trading”

Here’s a screenshot of the current short term trading recommendations as of this past Friday, 12/5/2014. That day Harris sent out an 8 am pre-market alert on ESI and bought at 8.60. The stock closed at 10.05 for a 16.9% gain in one day. Harris does this regularly at The Focused Stock Trader.

The successful trading short term portfolio

 

“Past returns should not be used as an indicator of future performance” is the standard legal disclaimer I have to add here.  But…in my opinion…when it comes successful trading, past returns are often the best indicator for future performance. In 2013 the top 10 picks at The Focused Stock Trader had an average return of 168% above the price they were recommended at…again, all documented.

At The Focused stock Trader, you’re given stop loss suggestions when entering any new trade to quickly limit any potential loss and preserve capital for the big running winners.


Get a FREE 4 Week Subscription to The Focused Stock Trader

  • Test drive the service for free while personally verifying the trading results for a month
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  • Get private twitter feed access — while the huge gains from the two portfolios above are from the daily pre-market emails, additional gains can be made in other fast-moving stocks via twitter alerts
  • Get full access to The Focused Stock Trader site with a comprehensive market news section and in-depth reporting on great stocks from several contributors

 

The sign-up box will read free 2 week trial, but my subscribers will get 4 weeks free.  You’ll receive and email confirming this after signing up.

 

It takes one minute to sign up and join me at The Focused Stock Trader - just use this link 

or click on the button below.

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Graphene 3D Lab Inc. gary siig

 

3D SystemsShares of 3D Systems (DDD) are precariously close to their 52 weeks lows of 32.64 set on November 14, and traded as low as 32.68 today.

While I’m hopeful we may be seeing a double bottom being made today and wrote why I was a heavy buyer of the shares recently, the stock will either bounce or break support in the next 24-48 hours.

As one of the most heavily shorted stocks on the NYSE, short sellers are able to easily cover now as many longs are likely selling for tax loss purposes as the year winds down.

3d printing stocksA break below previous support easily could lead to accelerated selling, so I suggest investors in the stock mentally prepare for that possibility and have a plan in place.

What am I doing? For now, I’m watching.

I won’t fight the market in DDD, despite my longer term positive views of the company and the overall industry.

If the stock manages to bounce on any news, more insider buying, or just from oversold conditions, then I will add shares as I’d feel more confident that a double bottom is in place. Should a double bottom be confirmed, then I’d expect a nice move up to follow over the next few weeks heading into 2015.

Conversely, should support fail, then I’ll be a seller as that prior support will turn to resistance and I’ll look for re-entry below $30.

 


Graphene 3D Lab Inc. gary siig

 

3D systems

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Subscribe to 3DPrintingStocks.com for free (box in left upper corner of page) to get news, articles, interviews, and actionable information on 3D printing stocks delivered to your inbox.


 

Disclosure: I am long shares of DDD. I was not paid by any company or third party for this article.

Disclaimer: Opinions expressed are my own and should not be considered investment advice nor an invitation to buy or sell shares of any company mentioned on this site. Investors should perform their own due diligence and consult with a Registered Investment Advisor prior to making any investment decision. See sidebar for full disclaimer.

Arcam In news this morning, Arcam AB (tickers ARCM.ST on the NASDAQ OMX in Stockholm and AMAVF as the U.S. ADR) announced an order of 5 of the company’s Q10 3D printers by Lima Corporate, (web site). Based in Italy, Lima Corporate develops, manufactures and markets joint replacement and repair solutions including implants for hips, knees, and shoulders.

Arcam AB Q10
Arcam Q10 3D Printer

Arcam also reported the sale of another Q10 system by an unnamed customer in a second press release this morning.

For Q3 Arcam reported the highest level of organic growth I’m aware of in publicly traded 3D printing stocks, with 125% sales growth, and for the January-September period, Arcam earnings were .32/share vs. .07/share.

Arcam took in 5 system orders in Q3, (up from 4 systems in the prior year period). In the last 3 months sales at Arcam have been fast and furious with announced orders for 11 3D printers from customers in Asia, the U.S., Europe, and China.


 

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Disclosure: I am long shares of Arcam.

Disclaimer: Opinions expressed are my own and should not be considered investment advice nor an invitation to buy or sell shares of any company mentioned on this site. Investors should perform their own due diligence and consult with a Registered Investment Advisor prior to making any investment decision. See sidebar for full disclaimer.

3D SystemsIn an SEC filing this morning , (but no press release), it appears in the settlement of their patent case, 3D Systems will receive  “8.0% of net sales of Formlabs products” from Formlabs through the effective period.

 

Item 8.01.
Other Events.
On December 1, 2014 the registrant’s subsidiary 3D Systems, Inc. (“3D Systems”) and Formlabs, Inc. (“Formlabs”) agreed to the entry of an Order dismissing all claims and counterclaims with prejudice in an action 3D Systems filed against Formlabs for infringement of United States Patent Nos. 5,554,336, 5,569,431, 5,609,812, 5,609,813, 5,762,856, 5,779,967, 5,785,918, and 5,814,265 (together, the “Subject Patents”), captioned as 3D Systems, Inc. v. Formlabs, Inc., 1:13-cv-07973-RWS, in the United States District Court for the Southern District of New York.
The Order was entered into pursuant to the terms of a Settlement and License Agreement (the “Agreement”) dated November 25, 2014 between 3D Systems and Formlabs under which 3D Systems granted to Formlabs a worldwide, non-exclusive, royalty bearing, license, without the right to sublicense, to make and sell Formlabs products under the Subject Patents.  In consideration of the license and releases granted by 3D Systems, Formlabs agreed to pay 3D Systems a royalty of 8.0% of net sales of Formlabs products through the effective period.

 

 

This is materially significant and positive for 3D Systems as the future royalty payments from Formlabs will go directly to the bottom line at 3D Systems.

 

Read why I’ve been buying shares of 3D Systems with both hands recently.

 


 

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Disclosure: I am long shares of DDD. 

Disclaimer: Opinions expressed are my own and should not be considered investment advice nor an invitation to buy or sell shares of any company mentioned on this site. Investors should perform their own due diligence and consult with a Registered Investment Advisor prior to making any investment decision. See sidebar for full disclaimer.

Camtek

In news announced this morning,  Camtek (CAMT) announced the successful completion of beta-testing of their enterprise grade “Gryphon” 3D inkjet printer for application of solder mask on printed circuit boards. The testing was conducted by Eltek (ELTK), a leading manufacturer of printed circuit boards.

In the press release, Roberto Tulman, Deputy CEO and CTO of Eltek commented:

“We thank Camtek and its dedicated team for the opportunity to test and use this new technology, helping us fabricate PCBs with better soldermask registration and shorter lead times. Operator training has already begun and we look forward to incorporating this new capability within our production process and realizing its full potential.”

 

Congratulations to subscribers who bought Camtek shares under $3 along with me when I wrote this article on 11/12/2014, as the stock is trading up in active premarket action on Nasdaq this morning. Options in Camtek are also available for those who trade them.

I believe the rise is due to 4 factors:

  1. This morning’s announcement
  2. Camtek shares were extremely oversold following Q3 earnings (see article)
  3. Average analyst EPS estimate is for a dramatic increase  to .33/share in 2015 vs. .15/share estimate for this year
  4. Demonstration of the company’s new “Gryphon” inkjet technology 3D printer for solder mask application will take place next week in the heart of Silicon Valley

While the analyst average estimate for an EPS increase to .33/share for 2015 vs. .15/share 2014 may be a bit lofty, considering the lack of share dilution involved in this new product launch combined with Camtek’s strong balance sheet ($24 million cash, zero long term debt, current ratio 3.1),  I think it’s reasonable to assume commercialization of the Gryphon will add significantly to the company’s bottom line next year.

Camtek Gryphon

The Gryphon’s pending launch was addressed by Camtek CFO, Moshe Eisenberg, in the company’s Q3 conference call:

“We are progressing with the commercialization process of Gryphon, our 3D functional inkjet technology product for PCB solder applications. We recently opened a demonstration center in California, South of Los Angeles where potential customer can evaluate the product, supporting our efforts to capitalize on the industry interest we are seeing in this product.
Our two better sites are almost complete, one of the sites is running production loads. In the second site the machine is running qualification loads for end customers. The more we ran the machine in the production environment as well as meeting with potential customers, the more confident we become in our belief that inkjet technology for solder mask will be the dominant technology in the PCB industry for years to come. We remain on track and expect initial commercial Gryphon installations at customers to begin in the fourth quarter with revenue expected in 2015. We intend to leverage our existing installed based and marketing channels worldwide to sell this product.”
 
 

Graphene 3D Lab Inc. gary siig

3D systems

Follow me on Twitter: @3DPrintingStock

Subscribe to 3DPrintingStocks.com for free (box in left upper corner of page) to get news, articles, interviews, and actionable information on 3D printing stocks delivered to your inbox.


 

Disclosure: I am long shares of CAMT. I was not paid by any company or third party for this article.

Disclaimer: Opinions expressed are my own and should not be considered investment advice nor an invitation to buy or sell shares of any company mentioned on this site. Investors should perform their own due diligence and consult with a Registered Investment Advisor prior to making any investment decision. See sidebar for full disclaimer.

3D SystemsIn news this morning, 3D Systems (DDD) announced they are acquiring Cimatron (CIMT), a  leading provider of integrated 3D CAD/CAM software products and solutions for manufacturing.

Cimatron (web site) generated .48/share in earnings for the trailing twelve month period and analysts estimate were for an increase to .54/share in 2015.

The deal includes $20 million in cash held by Cimatron and is expected to add to profit and cash flow immediately after the close in the first quarter of 2015.

Avi Reichental, President and CEO of 3DS commented.

“We believe that the perfect strategic fit between our businesses, combined with expanded capabilities in product development, channel coverage and marketing, could present sizeable synergies that together offer significant long-term customer benefits and shareholder value.”

 3D Systems (DDD) to Acquire Cimatron (CIMT)

Good Deal for 3D Systems

Based on initial information, this appears to be a very favorably priced acquisition by 3D Systems at $8.97/share given Cimatron’s strong cash flow and earnings history.  Cimatron traded as high as $10.75 earlier this year.

 

This acquisition increases my confidence in why I bought  shares of 3D Systems heavily two weeks ago.


Graphene 3D Lab Inc. gary siig

 

3D systems

Follow me on Twitter: @3DPrintingStock

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Disclosure: I am long shares of DDD. I was not paid by any company or third party for this article.

Disclaimer: Opinions expressed are my own and should not be considered investment advice nor an invitation to buy or sell shares of any company mentioned on this site. Investors should perform their own due diligence and consult with a Registered Investment Advisor prior to making any investment decision. See sidebar for full disclaimer.

3D Systems In my article “3D systems Q2 Earnings- How I’m Playing it and Why” written prior to the company’s Q2 release, I wrote that I was basically waiting for Q3 to go “all in” shares of 3D Systems (DDD), and the reasons why.

Since then, the company’s announcement of constraints in direct metal 3D printer production capacity led to lowered Q3 earnings and a 25% decline in share price in the last 3 weeks.

Because the Q3 miss was primarily due to issues of production capacity (now corrected according to management) and not demand, I’m now “all in” with a full position.

3D Systems

I believe the bottom for 3D Systems is either in or very near based on reasons I’ll explain below.

I bought DDD shares heavily last week and now have the largest position in 3D Systems since I first discovered and invested in the company in late 2010.  While I always endeavor to be ahead of the market and love “bottom fishing”, I won’t fight the market either. I’ve set a 7% stop-loss order for capital preservation in case I’m wrong and weakness continues.


3D Systems shares oversold, overshorted, and overhated

Shares in DDD are down some 63% YTD with acceleration (33% decline) of that loss made in just the last 2 months. The Williams %R has bounced between -90 to -100 in the last two weeks, indicating deeply oversold conditions. Of course the Williams %R indicator isn’t perfect and a stock can continue a strong downtrend while remaining oversold for many, many months…which is why my stop-loss is in place.

36.6 million DDD shares are sold short-  a whopping 38% of the float.  My belief is the Q3 miss has been priced in and this level of short shares is a contrarian indicator.

The level of unrealistic expectations and media hype that drove 3D printing stocks to their highs last year has now been equaled by negativity to the downside.

3D Systems is the favorite target of shorts, with negative articles by short sellers published almost daily on SeekingAlpha.

In an article on TheStreet.com last week, “Why the 3D Printing Hype Is Still Not Matching the Reality”, the author opined:

Stories about how biotech firms are using 3D printers to create replacement body parts are frequent fodder for Web news sites and give the unaware the idea that the 3D printer for sale at Staples or Amazon will have somewhat similar capabilities.

This is every bit as ridiculous as the headlines from a year ago that claimed “You can now 3D print anything you want!”, only it’s at the other end of the spectrum. Would anyone buying a 3D printer at Staples think for even a moment that their new 3D printer will have “somewhat similar capabilities” as bioprinting human organs?  

Negativity and fear surrounding pure play 3D printing stocks and 3D Systems in particular is now at the highest point I’ve ever seen it. This is quite a change from the frenzied, parabolic rides that were fueled by media hype last year.

Warren Buffett famously said he made his money by being fearful when others are greedy and being greedy when others are fearful.  Given the fear of longs (and some outright loathing by short sellers) surrounding 3D printing in general and shares of 3D Systems more specifically, I believe now is the time to get greedy.


Q3 shortfall a capacity, not demand issue

An earnings miss due to declining demand is one thing.  A miss primarily due to capacity constraints is another, and that’s what the 3D Systems Q3 basically boiled down to. When production can’t meet demand and you have the cash and ability to quickly rectify the situation, it’s more than likely a boon for the coming quarter(s). 

As of September 30, 2014 order backlog was $46.0 million. This compares to backlogs of $28.6 million at December 31, 2013 and $14.4 million for Q3 2013.  Much of the Q3 backlog should be realized in Q4, as the company has since added a second direct metal 3D printers’ manufacturing line to meet demand.

Regarding the capacity issue, CEO Avi Reichental explained:

“Now that we are ramping up production in a second direct metals facility, we expect to be able to meet this rising demand during the fourth quarter and beyond.”

The Q3 shortfall was also related to a decision to delay launch of some products at the consumer grade. This has been rectified as well. Damon Gregoire, SVP and CVO commented:

“Our decision to delay our latest consumer products decreased our consumer growth rate by 43% compared to last year’s third quarter. Now that we have begun shipping our latest consumer products we expect this category to contribute favorably and return to more healthy organic growth rates over the next periods.”


Hewlett-Packard’s entry into 3D printing is now scheduled the second half of 2016 (or later?)

HP’s CEO, Meg Whitman, remarked in October 2013 that “3D printers are like watching ice melt.” Following that attention-grabbing statement the official announcement of HP’s entry into 3D printing was twice delayed… along with the launch of their enterprise level Multi Jet Fusion 3D printer. HP’s printer launch has been pushed back…way back… and is (at least for now) scheduled for the second half of 2016. Even then, HP’s 3D printer will only print in plastic.

How long will it take before HP might enter the high-growth metals 3D printing space to potentially wrestle some market share from 3D Systems and other players?  Given the fact that ice melts at faster speeds than HP has been able to launch their (plastics only) printer, not anytime soon. While HP’s 3D printer speeds are projected to be some 10X faster than what was available a year ago, printing speeds and print quality continue to improve industry-wide. In “technology time”, from now until the second half of 2016 is an eternity and 10X faster speeds may not be very remarkable by then. So I think it’s far too soon to predict the impact HP may have on 3D Systems or other players, other than to remind investors that HP’s launch is a long way off and every company in the industry is increasing printing speed and print quality with each new iteration of their machines.

3D SystemsTake a Prodways D35 3D printer (pictured at left) for example. This printer is capable of manufacturing (not just prototyping) jewelry pendants of 2.5 cm in under 11 seconds per unit according to a press release last week from parent company Groupe Gorge.  My guess is that’s at least 10X faster than “watching ice melt”…and the D35 printer isn’t limited to plastic.

Closer to home, 3D Systems is developing a system for manufacturing Google’s Project Ara smartphone components that will no doubt set both production volume and production speed records.

3D printers typically use a moving printhead on a stationary bed. The 3D Systems high-speed continuous fab-grade printer system puts the print bed in motion on a track system under a set of stationary printheads. The result is a 3D printing assembly line with multiple products printing at once, each  unique, in full color and multi materials.

Production speeds of 50X current technology are expected be achieved by 3D Systems in 2015 with this system.

 Perhaps more importantly, this system can be utilized in multiple applications.

CEO Avi Reichental explains:

“We believe that this high-speed continuous 3D printing platform and polymers would have wide applications into a variety of both industrial and consumer goods type manufacturing applications.”

and

“We expect to be able to apply the benefits of these developments into many, many other industrial and consumer goods applications.”


 Increasing medical/healthcare industry focus

3D systems is making strong inroads into the medical industry via acquisitions and new product offerings.

  • This year’s acquisition of Medical Modeling brings proprietary virtual surgical planning and medical device 3D printing expertise
  • The acquisition of Belgium’s LayerWise also expands capabilities in medical and dental direct metal 3D printed devices and implants
  • The Simbionix acquisition is also noteworthy as a leading provider of 3-D virtual reality robotics-based surgical simulation and training products

 

3D Systems healthcare 3D printers

The increasing strength of 3D Systems in the medical/healthcare industry is a major reason to like the stock here. 

In August, Gartner released their 2014 outlook for 3D printing and medical/healthcare applications are predicted to be among the first to achieve broad-based, global adoption “within 2-5 years.”

IDTechEx researchers also conclude that “The medical/dental sector has strong growth potential. Currently forecast at $186M for 2014, it will grow to $868M by 2025 led by dental applications and increasing use for the manufacture of orthopaedic implants.”


I read what the analysts say carefully. Then I do the opposite.

In November-December of 2013 most analysts from the big firms had “outperform”, “buy”, or “strong buy” ratings on 3D Systems when the stock was at $70+/share. Many of those same firms are now saying you should sell in the $30/share range. Out of 23 firms, 61% now have a “hold”, “underperform”, or “sell” recommendation on the stock according to Thomson/First Call.

I did not load up on 3D Systems at $70+ last year. Instead, I introduced Groupe Gorge to subscribers on 11/29/13 and after more due diligence called it “The Best 3D Printing Stock to Buy Now” on 12/9/13. The chart below tells the rest of the story.

3D Systems stock chart

So I’m not listening (again) to the majority of analysts.  I bought 3D Systems with both hands last week, even as the stock continued to make new 52 week lows.


 

Insider buying last week

Company insider Walter Lowenbaum isn’t listening to analysts either. He bought over $880,000 worth of shares in the open market last week (Form 4).

Now there are many reasons why insiders might sell shares of their stock- and sometimes it has nothing to do with their personal view of the company’s future. That said, there is only one reason for insiders to buy shares in the open market…because they believe the stock is undervalued. There’s also “token gesture” insider buying vs. meaningful position buying, with this level of investment obviously being the latter.


 

Due to the above, I’m confident that shares of DDD are now undervalued and poised to move higher. Being confident and being right are two different things however. Unforeseen factors such as a broad market correction or the potential effect of tax-loss selling as the year winds down are impossible to predict, underscoring the importance of stop-loss orders.


Graphene 3D Lab Inc. gary siig

 

3D systems

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Disclosure: I am long shares of DDD. I was not paid by any company or third party for this article.

Disclaimer: Opinions expressed are my own and should not be considered investment advice nor an invitation to buy or sell shares of any company mentioned on this site. Investors should perform their own due diligence and consult with a Registered Investment Advisor prior to making any investment decision. See sidebar for full disclaimer.