Why 3D Systems, Clean Energy Fuels, and Buffalo Wild Wings Tumbled Today

Stocks managed to climb back from earlier big losses, but these three stocks posted substantial declines today. Find out why here.

Feb 5, 2014 at 7:31PM

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

At first glance, it looked like the stock market might give up all of its gains from yesterday, with stocks coming out of the gate with a big decline near the open. But throughout the day, the market clawed its way back, finishing with only modest losses. However, that didn't help shareholders in 3D Systems (NYSE:DDD), Clean Energy Fuels (NASDAQ:CLNE), or Buffalo Wild Wings (NASDAQ:BWLD) avoid substantial losses on Wednesday.

3D Systems (DDD) plummeted 15% after the 3-D printing specialist issued a profit warning in its preliminary full-year 2013 results. The company said that revenue would fall within its previously guided range, but it reduced its guidance range for adjusted earnings, with the new midpoint of $0.85 per share representing a 13% drop from the midpoint of its previous expectations. Yet even though consumer demand has been a problem for 3D Systems, the company's products are still popular among industrial customers. Even though the industrial side of the business arguably has more intense competition, today's news shows that 3D Systems will need to succeed on both industrial and consumer applications in order to make the most of the huge opportunity that 3-D printing offers.

Clean Energy Fuels (CLNE) dropped 14%. Many traders blamed a negative assessment of the company on Seeking Alpha for the downward action today, but another more general concern involves the soaring price of natural gas lately. Given that the whole basis for Clean Energy Fuels' business model hinges on it being cheaper for transportation companies to use nat-gas as a fuel rather than oil-based fuels, rising nat-gas prices could dissuade users from converting. That would threaten the company's existence, even though natural gas would have to rise further from current levels to eliminate the potential cost advantages for commercial users.

Buffalo Wild Wings (BWLD) fell almost 10% after reporting earnings last night that included a 12% rise in revenue and same-store sales increases of 5.2% at company-owned restaurants and 3.1% in franchise locations. Even though CEO Sally Smith said that she still expects Buffalo Wild Wings to post 20% earnings growth this year, shareholders wanted even faster growth from the restaurant chain. Despite an early rise right after the announcement, investors changed their mind after more-cautious comments in the conference call led them to second-guess their optimism. The stock's move shows just how much investors expect from high-growth prospects in today's shaky market environment.

Is 3-D printing a bubble waiting to pop?
The revolutionary technology of 3-D printing promises to change the way companies around the world manufacture goods. But as 3-D Systems showed today, the trick now is to identify the companies -- and thereby the stocks -- that will prevail in the battle for market share. To see the three companies that are currently positioned to do so, simply download our invaluable free report on the topic by clicking here now.

Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter: @DanCaplinger. The Motley Fool recommends 3D Systems, Buffalo Wild Wings, and Clean Energy Fuels and owns shares of 3D Systems and Buffalo Wild Wings. Try any of our Foolish newsletter services free for 30 days. 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.

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.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

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

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

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. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

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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