philip lelyveld The world of entertainment technology

3D Systems: Has The Printer Jammed?

[Philip Lelyveld comment; this analyst has found some interesting revenue manipulation by 3D Systems, but I don't agree with his conclusion that the bottom is about to fall out of the 3D printer industry/culture.]

Epilogue

My summary of the situation is this: the industrial market for 3D printers has matured for rapid prototyping and demand has declined. This has forced printer manufacturers to move downstream to lower materials usage and more price sensitive customers. This market is more diffuse so access is a problem. Additive manufacturing, while promising, has yet to gain traction. This is why DDD has expanded its reseller channel and moved into services. Adoption has been slow because of the high upfront cost of a 3D printer. Hence, Cube. 3D printing/additive manufacturing might be the "next big thing" so the stock market has reacted predictably by driving the market value of DDD to an all-time high. The market has over-reached.

DDD is at or near its peak coinciding with 3D printing being near the peak of the hype cycle. Now is the time to start asking the difficult questions. Now is the time to hedge your long position.

The 3D hype cycle is reaching a crescendo. The red flags are numerous and substantial. Management's behavior is suspicious. Disclosures are confusing, inconsistent and vague. Black clouds are forming.

See the full story here: http://seekingalpha.com/article/999501-3d-systems-has-the-printer-jammed