Citron Research Is Causing 3D Systems Inc. Stock to Crash. Should You Care?

Citron issued a bearish report on 3D Systems, but should investors take note?

Jan 27, 2014 at 5:45PM

Known for its extremely bearish stances, research firm Citron Research has come out with a report detailing a long list of red-flag reasons for investors to be bearish on 3-D printing company 3D Systems (NYSE:DDD). Shares of the company are down around 17% over the past five days, initially selling off as the overall market pulled back this week, but really accelerating once this report came out.

Among other things, the report highlights growth problems with the company, saying that acquisitions cannot maintain this pace, that the company's recent acquisitions have been uninspiring, and that 3D Systems' organic growth rates are misleading. The report also discusses poor reviews of working for the company from employees, as well as an R&D budget that is spread too thin over too many projects, leaving the company a jack of all trades, master of none. By comparison, the report has several positive things to say about competitor Stratasys (NASDAQ:SSYS).

In this video, Fool industrials analyst Blake Bos takes a good look through the report, and tells investors what he thinks of 3D Systems today, and of investments in the 3-D printing sector as a whole.

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Blake Bos has no position in any stocks mentioned. The Motley Fool recommends 3D Systems and Stratasys. The Motley Fool owns shares of 3D Systems and Stratasys. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

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KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

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Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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