This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Taking a Wild Ride on the Hype Cycle

NEW YORK ( TheStreet) -- Rock Hill, S.C., 40 miles south of Charlotte, N.C., along I-77, has a modern city hall, a cute, renovated downtown area and a place at the peak of the Hype Cycle, a Gartner graph describing the process of how markets adopt technology.

Rock Hill earned this honor by being home to a company called 3D Systems (DDD - Get Report), which makes a line of three-dimensional printers ranging from the $1,300 Cube to models that cut metal with lasers.

The company is presently selling $100 million worth of printers each quarter, but thanks to the hype cycle the company is worth $4 billion on the New York Stock Exchange.

The hype went into overdrive last week when its main rival, Stratasys (SSYS), bought tiny MakerBot, which makes its Replicator printers in Brooklyn, N.Y., for $403 million.

As Crain's New York Business reports, MakerBot, founded in 2009, has made just 22,000 Replicators and Replicator 2s, which sell for a few thousand dollars each.

Under the deal Stratasys will issue approximately 4.76 million shares and exchange them for all MakerBot's stock. This gives MakerBot a 15.4% stake in Stratasys, despite estimated sales for the first quarter of $11.5 million.

Stratasys was willing to pay 10 times revenue for MakerBot because it needs a low-end printer, and because MakerBot also owns Thingiverse, a design market for 3-D printing files. CEO Bre Pettis is the cover boy of the space, speaking regularly at hacker congresses, appearing on the cover of Wired, and hanging out with people like MIT Media Lab head Joi Ito.

Chuck Hull, who founded 3D Systems, is more of a Rock Hill kind of guy. Now 74, he took out the first patent on stereolithograph , which is at the heart of the industry, in 1986. Hull is more comfortable talking with the international society for optics and photonics than he would be keynoting South by Southwest, as Pettis has done.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
SYM TRADE IT LAST %CHG
DDD $30.25 0.00%
AAPL $129.09 0.00%
FB $79.75 0.00%
GOOG $571.34 0.00%
TSLA $197.32 0.00%

Markets

DOW 18,288.63 +155.93 0.86%
S&P 500 2,117.39 +12.89 0.61%
NASDAQ 5,008.0960 +44.5690 0.90%

Partners Compare Online Brokers

Free Reports

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