Stocks on Our Radar: 3D Systems

3D Systems (NYSE: DDD  )  is going on another shopping spree.

The company announced earlier this week that it would offer nearly 6 million additional shares in a secondary offering, raising nearly $317 million "to finance future acquisitions and for working capital and general corporate purposes".  In addition to the $300 million of cash on 3D's balance sheet, the company has nearly $600 million available at its disposal.

The 3-D printing industry is growing at an incredibly quick clip, and has attracted several heavy competitors. Rule Breakers analyst Simon Erickson and Stock Advisor analyst Sara Hov discuss what effect "loading the elephant gun" like this will have on 3D Systems' future.  

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  • Report this Comment On May 30, 2014, at 10:10 PM, TMFTopDown wrote:

    Hey Simon,

    Great convo! The only thing I'd like to add is that DDD's consumer revenue last quarter was only 6.5% of total revenue. The majority of DDD's money is being made in the professional and industrial segments. Still, the company does like to focus heavily on the the consumer segment for marketing buzz. ;)

    Also, DDD stated on its Q1 call that its operating leverage won't be fully restored until 2016. I'd imagine that's when we'll know if DDD can make great acquisitions.

    Cheers,

    Steve

  • Report this Comment On May 30, 2014, at 10:12 PM, TMFTopDown wrote:

    Hey Simon,

    Great convo! The only thing I'd like to add is that DDD's consumer revenue last quarter was only 6.5% of total revenue. The majority of DDD's money is being made in the professional and industrial segments. Still, the company does like to focus heavily on the consumer segment for marketing buzz. ;)

    Also, DDD stated on its Q1 call that its operating leverage won't be fully restored until 2016. I'd imagine that's when we'll know if DDD is making great acquisitions.

    Cheers,

    Steve

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