This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Short Sellers Beware: 3D Stocks Are Still Hot

Stocks in this article: DASTY DDD SSYS XONE

Chris Lau, Kaptiall: 3D Systems (DDD) squeezed out bearish investors when the company reported strong quarterly results. Since bottoming in mid-March 2013 at a price below $30, shares closed recently at $38.24. The company earned $0.21 per share (non-GAAP) as sales grew by 31%. All financial metrics were solid. In summary, the company reported:

·       Gross profit margins rising to 52.4%

·       Non-GAAP income rising 43% to $18.9 million (GAAP net income was $5.9 million)

·       New product introductions during the quarter

According to finviz, short float is around 33%, and is likely one of the factors driving shares higher by 7% on April 30. Positive upside will likely continue for the 3D printing sector, and especially for 3D Systems. Many company-specific factors continue to be positive for the company. Sales growth remains positive every quarter, spending in R&D continues, and the company expects manufacturing spending  by customers to continue.

Financial Highlights

Investors should note a few significant changes on the balance sheet. Interest and other expenses rose by nearly 3 times compared to last year, to around $10 million. Foreign currency translation contributed to a $3.3 million loss.

On the liabilities side, deferred revenue rose 21% to 18.5 million, while convertible senior notes declined by 46% to $43 million.

Comparable Investments

3D Systems is valued at a price of profit (or forward P/E) of 37, far higher than Dassault (DASTY), whose POP is 26. ExOne (XONE) has a POP of over 70. ExOne reported quarterly results at the end of March that were solid. ExOne is unique in that it uses binder jetting technology. The product also prints in sand and metal.

Fellow 3D printer maker Stratasys (SSYS) rose earlier in the month when the company was given an $82 price target by investment firm Canaccord.

Dassault (DASTY) reported revenue growth in Asia (up 8%) and the Americas (up 7%) in the first quarter. The company improved earnings, which increased by 10%. Cash flow rose 12%, helped by working capital improvements.

To view the volatility in share price over the last year, click “play” below:

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs