Category Archives: $DDD

$HPQ: Earnings due tomorrow, , 3D printing finally announced..FV update

$HPQ announced its 3D printer earlier this month and judging from the reaction of other 3D stocks, and the fact the $HPQ FV is largely unchanged, the new printer will not have a significant impact on revenues nor the overall 3D Printing market.

2Centview has been the low risk to play to get exposure to 3D is via $HPQ which is up 35% on the year whereas $DDD is down 60%.

FV = 38.5, Yield 1.75%

the Impending break up of $HPQ could add another $3-$5 and the right acquisition in the 3D Space e.g. 3D Systems could add another $3 – so $HPQ could be worth as much $45.

Hold as a core position if you are long $HPQ and buy on weakness below $35.

$DDD (3D Systems) – off 15%today 65% YOY – price starting to look attractive and may attract interest from $HPQ

At 36.7 $$DD is off 65% from the high set in January this year.

The price implies a 35% growth rate over 5 years – which is more realistic growth rate to buy into 3D technology.

3D printing technology allows manufacturers to create custom products for clients without the cost and complexity of producing unique products for clients.
A simple analogy but not really applicable to cars, is that if you want your BMW to have slightly different design or shape to the standard, you can with no cost to the manufacturer or you!

The technology could revolutionize standard manufacturing processes.
Read the latest 3D annual report…before and if decide you buy the stock.

A good entry point will be in the low 30’s – say 32 (closer to 30% growth). Do not buy on the hope of a take over (although at the current price it must be attractive to $HPQ) – but believe it can be successful company and technology in it’s own right . Stop $24.

3d printing valuations coming back to earth

3d printing – the technology which alllow you to design a cutlery tray exactly how you want it and then ‘print’ it …so you can have a compartment for small spoons at last! Is only predicted to have a TAM of around 5billion dollars …so assuming 20pcnt margin, and. 15times long term growth, the market cap of business is only 15 billion.

This is roughly the market cap of $ddd and $xone ….yet the barriers to entry are not that high $hp is apparently is entering the market organically which means so can siemens, ge etc.
So the valuation of ddd and xone seems way too high and like the solar industry valuations 3 years ago will come back down to earth.
Best of breed in the pure play is probably stratsys $SSYS…2centview is long $hp for exposure to 3d printing.
One exciting development would be creation of a business franchise from this technology as it is not practical to have your own! Cant wait to go into snappy snaps and order my own custom designed cutlery tray!

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