Should You Sell 3D Systems?

Having declined 24% in the last month, it's safe to say that shares of 3D Systems (NYSE: DDD  ) have taken a bit breather. In this video, Fool contributor Steve Heller talks to Alison Southwick about the situation and shares why he believes setting a long-term view is crucial when investing in high-growth companies like 3D Systems. In particular, he says, high-growth companies are often victims of unrealistic expectations, which can cause shares to swing violently from month to month. Ultimately, he believes 3D Systems is a winner for the patient and strong-stomached investor, given the growth prospects for the total 3-D printing industry in the years to come.

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 the stock today. To start reading, simply click here now for instant access.


Read/Post Comments (17) | Recommend This Article (6)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 11, 2013, at 10:11 PM, randallengle wrote:

    Yes, I am invested in DDD and SSYS. It is difficult to pick which one will be the ultimate winner but chances are good that one or both of these companies will be making some amazing technology in 5-10 years. I am willing to hold in the interim even if the stock stays or goes lower.

  • Report this Comment On March 12, 2013, at 2:11 AM, mitstrebor wrote:

    When they start making cars that fly,maybe by then 3D technology will be worth having!

  • Report this Comment On March 12, 2013, at 2:19 AM, limboonchuan wrote:

    Sell? I was waiting for such a time to buy DDD in the first place! I feel that it is a good time to accumulate especially after the fall. Hopefully SODA will be the next so that I can grab more of these shares.

  • Report this Comment On March 12, 2013, at 2:27 AM, piinob wrote:

    I bought DDD way back at the 17 dollar level. I will stick around and see where it goes over the next few years. I do believe that it is world changing technology.

  • Report this Comment On March 12, 2013, at 11:34 AM, howie1pt5fool wrote:

    If I had bought 3D at 17 I'd feel a lot better than at my split adjusted cost of $38. I believe this is a good company and will work in a 5 year period. It's just a long time and where is the bottom? I'm sticking around for now but don't know if I should punt or dollar average down.

  • Report this Comment On March 12, 2013, at 1:23 PM, cyrshiningstar wrote:

    I bought DDD just about at it's peak (before the split). I have to admit I'm getting nervous watching the decline this month but I believe in the Fool's outlook that it's a long term investment. I'm hanging in there!

  • Report this Comment On March 12, 2013, at 1:31 PM, xNessUnox wrote:

    I was invested in DDD and SSYS and sold both. DDD for 96 % gain and SSYS for 54 % gain. Thanks be to the markets. I sold SSYS because of the issues associated with the Object deal and resulting lawsuit. I sold DDD because of the CEO's comments that 3D printing is bigger than the steam engine, bigger than the computer and bigger than the internet. His comments are complete hogwash. How can anyone accept comments of that nature?

    Three D printing or additive manufacturing has been with us since the mid 1980s. They have had almost thirty years to "revolutionize" manufacturing. 3D printing has not revolutionized manufacturing and never will. 3D printing is a wonderful process for making prototypes of items one may want to manufacture in a conventional method.

    I'm disappointed with Motley Fool for promoting 3D printing to the extent that they have, without going into details of what the 3D processes actually are. You have stated that hand guns were made with 3D printing. Has anyone fired such a gun? What was the end result? What engine parts made with 3D have found their way into jet engines? What health care products were made with 3D?

    I do expect Motley Fool to distinguish between hype and reality. The 3D process is more hype than anything. This process can't replace conventional manufacturing.

  • Report this Comment On March 12, 2013, at 8:54 PM, TMFTopDown wrote:

    @xNessUnox --

    In the link below, I've quoted the CEO of Materialise (voted "most influential" in the industry), who believes 3-D printing could one day make up 30% of the manufacturing industry. In 2010 terms, that would make 3-D printing a $3+ trillion industry. I agree with you that 3-D printing won't go into all things manufacturing related. However, there's still a ridiculous amount of potential from here. To boil down my thinking, I believe it all hinges on R&D spending to expand the uses of 3-D printing.

    http://www.fool.com/investing/general/2013/03/12/does-moores...

    Hope this gives you some more perspective!

    --Steve Heller (TMFTopDown)

  • Report this Comment On March 12, 2013, at 9:17 PM, primeco3313 wrote:

    Yes iam in DDD and i would like to see more information on where the stock is heading and when. Iam tired of seeing "the company sports a dizzying valuation" in everybodys report.

  • Report this Comment On March 12, 2013, at 9:22 PM, TMFTopDown wrote:

    @primeco3313

    Check out this post to put that aims to put 3-D printing in perspective:

    http://www.fool.com/investing/general/2013/03/12/does-moores...

    Cheers,

    Steve Heller (TMFTopDown)

  • Report this Comment On March 12, 2013, at 9:24 PM, TMFTopDown wrote:

    Check out this post *that aims to put... Whoops!

  • Report this Comment On March 13, 2013, at 11:11 AM, jwactowski wrote:

    I invested in 3D printing and so far have lost "a considerable amount of money". I am hanging on for now, but if there isn't a turn around within 3-4 months then I'm out. I can't wait 5-10 years for return on investment and I don't think most investors can. So far I'm truly disappointed in this Foolish Advice.

    JDW

  • Report this Comment On March 13, 2013, at 12:46 PM, TMFTopDown wrote:

    jwactowski --

    The key to long-term investing is to find excellent companies that do the heavy lifting for you over the long-term.

    In the context of a high-growth company like DDD, it means being patient because there will be ups and downs. Just because a stock isn't preforming on a short-term basis, shouldn't rattle your confidence that its prospects remain especially bright.

    Currently the 3-D printing industry is worth a few billion. By 2019, it should grow to $6.5 billion, which represents a compounded rate in the strong double-digits. The CEO of Materialise, who was recently voted the most influential in the 3-D printing industry believes that 3-D could eventually grow to represent as much as 30% of manufacturing. In 2010 terms, that's a $3 trillion addressable market! Yes, we're a long ways a way from that happening, but wouldn't it be great to own a company that could perhaps be central to this growth? Granted, it's not guaranteed that the 3-D companies of today will be part of this potential boom tomorrow, which is why this should be treated an opportunity cost investment. Ultimately, you need to decide if the potential cost is worth taking a risk on.

    With all investments, setbacks do happen, but try your hardest not to lose sight of the long-term implications with 3-D printing. Perhaps taking a smaller sized position would prove useful to mitigate overall portfolio risk.

    Below are two links to posts that I think will help keep things in perspective for you:

    http://www.fool.com/investing/general/2013/03/12/does-moores...

    http://www.fool.com/investing/general/2013/02/25/3d-systems-...

    Thanks for your comment,

    --Steve Heller (TMFTopDown)

  • Report this Comment On March 13, 2013, at 4:50 PM, wolfhounds wrote:

    Everyone worries about the stock price today. Take a look at the (unsurprising) rise in short interest since the split. Thank you management. The stock was certainly over priced, inviting the short sellers. If you think DDD is a 10 year investment now looks like a good to enter or add to. Read 4th qtr earnings conference. Forward p/e is now about 31, a far cry from 70.

  • Report this Comment On March 15, 2013, at 10:35 AM, gardnergray wrote:

    I don't listen to the FOOL anymore.

  • Report this Comment On March 16, 2013, at 4:12 AM, emmort wrote:

    If you don't listen to the fool anymore how come you're posting on this thread??

  • Report this Comment On April 14, 2014, at 11:13 PM, Qrs wrote:

    I bought in at $90. I'm a new investor and everything on TMF at the time suggested it was still a buy. Now that it has dropped this far is there any point holding on to them? Even in the long term the commentary seems to suggest less than my original buy in. Any advice?

    Thanks.

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