How to Approach Sky-High 3-D Printing Valuations

Although 3-D printing stocks were some of the best performers in 2013, the same can't be said for 2014. Generally speaking, the entire sector has fallen out of favor with investors thanks to a slew of guidance revisions, renewing concerns that the sector is grossly overvalued. The icing on the cake was when 3D Systems (NYSE: DDD  ) warned that it's going to take a big earnings hit in 2014 because it's increasing some expenses related to growing its business with a long-term view.

With 3-D printing stocks now well off their all-time highs, investors may start to wonder what price is too high, and how to manage the risks associated with investing in a high-growth industry like 3-D printing. In the following video, 3-D printing analyst Steve Heller sits down with the head of Motley Fool's industrials bureau, Blake Bos, to discuss 3D Systems and ExOne  (NASDAQ: XONE  ) , and how to invest in a sector that's certain to have continued volatility and looks extremely expensive on paper. (The relevant video segment can be found between 5:33 and 9:04.)

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  • Report this Comment On February 07, 2014, at 1:30 PM, SkepikI wrote:

    Steve: A better idea would be "How to AVOID sky high 3 D printing valuations. Just think of all the money MF could have saved its members and readers by adopting that approach from DDD share value of oh, say $60/sh to $90/sh. Think how much more you can save them in the future by following that approach from now to ummm $30/sh ;-)

    No doubt this will come back to haunt me, but while interested in the sector, I refuse to take the risks involved in astronomical P/E and betting on ever higher valuations instead of earnings and execution. Of course, I'm not 30 anymore either, so this one I leave to the young who can recover from the risk. Until things get back to rationality in a good correction or outright crash.

  • Report this Comment On February 07, 2014, at 1:44 PM, SkepikI wrote:

    I did not watch your video, because I refuse to view videos with no transcripts, a continuing and serious problem with MF article policy in my view. So I will never know if your detailed points are worthy of consideration when values get back to rationality. Perhaps I am missing out, but I am quite stubborn about sticking to principals that serve me well, until forced to admit they no longer do. That persistence has saved me a bundle ($ and time) over the years.....

  • Report this Comment On February 14, 2014, at 3:11 AM, wildeweasel wrote:

    Yes, please put in transcripts for the videos. The audio is terrible, the picture quality is horrid, the load times are too long and, they talk to fast to follow properly. We are trying to get investing advice not buy a car. XONE is a terrible investment BTW.

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