Did 3D Systems' Stock Split Rattle Investors?

Despite 3D Systems (NYSE: DDD  ) releasing, by all accounts, an excellent earnings report of its last quarter, shares took a major dip Monday morning, after the company announced that a three-for-two stock split would be completed and effective beginning at the close of business on Friday, Feb. 22. In this video, Motley Fool industrials analyst Isaac Pino speculates on how this stock split may have shaken investors, and cautions that it is much more important for investors to follow the fundamentals of how a company is performing, rather than look at more superficial events such as a stock split to base your thesis on.

3D Systems is at the leading edge of a disruptive technological revolution, with the broadest portfolio of 3-D printers in the industry. However, despite years of earnings growth, 3D Systems' share price has risen even faster, and today the company sports a dizzying valuation. To help investors decide whether the future of additive manufacturing is bright enough to justify the lofty price tag on the company's shares, The Motley Fool has compiled a premium research report on whether 3D Systems is a buy right now. In our report, we take a close look at 3D Systems' opportunities, risks, and critical factors for growth. You'll also find reasons to buy or sell, and receive a full year of analyst updates with the report. To start reading, simply click here now for instant access.

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  • Report this Comment On February 25, 2013, at 2:31 PM, leviek wrote:

    What a great attempt to cover the mistake your analyst Chatsko made this morning in printing a completely erroneous report on DDD's non-gap earnings guidance. Why don't you admit to the mistake and move on rather than blame the 3 for 2 split as the culprit.

    If an analyst can't take an after split EPS and multiply it by 1 and 1/2, he shouldn't be an analyst. Making excuses only makes the matter worse. Don't blame DDD for their stock split, blame the bad analysis of this report.

    Toatally looks like CYA to me!!!

  • Report this Comment On February 25, 2013, at 4:42 PM, ScottAtlanta wrote:

    This is an excellent point. Market psychology has a LOT to do with outcomes...and this is a stock with a lot of risk...therefore a lot of fear associated with owning it (for most folks).

    When many see the dramatically lower price, 32 vs. 56, with a reported 17% drop....they don't do the math...they see what looks like a 43% drop in absolute numbers and panic...and sell. I got a little panicky, but FIRST read the reported numbers -- no change in fundamentals of this tech or co. -- then I bought more shares @ 14% lower to bolster my tentative position taken pre-earnings last week. I have a long term hold position unless fundamentals change.

    You also had the downward pressure of a down market today pushing everything lower and worsening psychology. It'll probably get uglier as the sequester issue festers and the market corrects after it's long bull run.

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