If you own either, you’re going to be in for a pleasant surprise when you take a look at your portfolio today.
The two publicly traded companies, 3D Systems (DDD) and Stratasys (SSYS), today saw some of the biggest gains on Wall Street, on an otherwise mixed day that had the S&P down 0.20%. The 3D printer stocks made an incredible showing, with Stratasys rising 7.33% and DDD rising even further, 11.52%.
Stratasys closed at an all-time high of $75.97, breaking through the previous all-time high of $73.32. Competitor 3D Systems was ever so close to breaking its all time high of $46.92, almost breaking through mid-day, closing at $46.55. The volume on 3D Systems was about three times its average daily volume and Stratasys more than doubled its average volume. Breaking all time highs on high volume is a very positive technical sign for SSYS; DDD still needs to close above its all time high to be considered a breakout. Nevertheless, the action on both stocks is extremely bullish.
People ask me all the time if they should purchase the shares at whatever the current price is that particular day. When the share prices are high, they are scared of paying up at prices so much higher than what I tell them I paid for my shares. When prices have taken a dive, they worry that all the naysayers that then come out of the woodwork are right and the stocks could get cheaper. But I always tell them the same thing: you cannot time the market or a stock, you won’t be able to pick the perfect point of entry. If you are sold on the future of 3D printing and have done your due diligence on these two companies, average your purchases over time–don’t try to pick the price.
These are highly volatile stocks, as they are still rather small, so news, analyst opinions, earnings and other events can move them significantly from day to day. Hell, I’ve been around long enough to know that the gains we’ve seen today could be wiped out tomorrow. But these are companies you should be in for the long term (other than any trading shares you want to play with)–with all the patents they own and the growth and momentum they have, they are going to be the leaders for some time. Actually, I believe we’ll see them being bought out. No inside information, just my own non-professional opinion. Think about a company like HP–even if they were not as screwed up as they are right now, they could buy into the market for much less than they could enter in themselves from scratch. And consolidation in the segment is here now; note that GE Aviation just last week bought 3D printer company Morris Technologies. And of course, let’s not forget the huge Stratasys/Objet merger earlier this year.
Hang on for the ride. I think it will be legendary.
Weekly Chart for Stratasys (SSYS)
Weekly Chart for 3D Systems (DDD)
3D printer stocks soar on Wall Street
by Mark Fleming