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Momentum And Supply….3D Printing

Just a quick note on 3D printing but I am going to build a longer case study on this trend as it evolves in real time.

Yesterday, 14 Wall Street ‘Analysts’ had a buy on the stock, 4 a hold and two a sell. Congrats of course to the TWO.

In my fund and model portfolio, we had been selling 3D printing stocks on the way up last year and the last sell came at $78 (it’s easy to follow the model portfolio and join).

When we started buying 3d printing stocks in 2012 (videos on my blog if you search), there were two public companies ($DDD and $SSYS). Today there are at least 5. I can buy a 3D printer from any of 50-100 startups on Kickstarter. My friends order them. It’s all of a sudden a crowded idea. The good is I can
t believe it’s happening, the bad…supply and likely a lack of quality is ahead of demand.

A month ago, ‘Shittybank’ and JP (no fine is too big) Morgan were raising price targets on $DDD in the high 70’s. I was chiming in on Stocktwits that the end was near. I hate that part of the game as it is usually very late in the price cycles for the stocks. UPDATE – Here is a chart of recent analyst upgrades plotted against the stock chart of $DDD. I remember the POTASH price raise of a few years aback and the crashed that ensued. The stocks did rise another 20-30 percent, but now $DDD as I write is down almost 50 percent from peak prices from LAST MONTH.

The good news, is that $DDD and Hershey are partners so you can print some chocolate with your printer and hopefully some profits you made on the way up.

If you are caught now with losses, please be careful, as the Wall Street supply machine is in full gear, the momentum is broken and you CANNOT print cash or bitcoins with a 3D printer.

  • Mike

    Excellent post

  • James Jack

    WS analysts only one step in front of the magazine-cover-indicator?

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