Why 3-D Printing Stocks Crashed at the Outset of 2014http://www.fool.com/investing/general/2014/01/30/why-3-d-printing-stocks-crashed-in-2014.aspx Steve Heller
January 30, 2014
Between guidance revisions, a downgrade, and a bearish attack by Citron Research, Stratasys (NASDAQ: SSYS), 3D Systems (NYSE: DDD), and ExOne (NASDAQ: XONE) have been off to a sluggish start in 2014.
Starting off on the wrong foot
Peeling back the layers, it becomes evident that Stratasys is more focused on growing its business over the long term than it is concerned with short-term profitability. In the coming year, Stratasys plans on increasing its R&D investments to develop new products and will significantly build out its manufacturing capacity in anticipation of future demand. Both of these are healthy signs of things to come and show that management has the right priorities for the business.
The second shoe to drop
However, five of ExOne's printer sales that were expected to close in 2013 have been pushed into 2014, indicating that timing -- not a loss of sales -- was the biggest contributing factor to the guidance revision. On a brighter note, ExOne plans on quadrupling its manufacturing capacity, a telltale sign that the long-term fundamentals likely remain intact. In other words, investors likely overreacted to the news here.
Souring on 3D Systems
While many of the accusations in the report could potentially threaten the long-term-investment thesis, some of the report's assertions were based on dated and potentially misleading informa