This Day On The Street
Continue to site
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

Greenberg: Moral of The 3-D Printing Story

SAN DIEGO (TheStreet) -- Confession: I had never heard of Voxeljet (VJET - Get Report), the 3-D printing company, until yesterday. That's when the stock collapsed after Citron Research wrote a scathing report.

Voxeljet's crash landing pulled down the other 3-D printing companies in classic knee-jerk fashion.


Could they all bounce back? Today all but Voxeljet did.

In the end, as even Green Mountain (GMCR) shows today, in this market it's more about the story than the substance.

Must Read: Don't Buy JCP's False Hope, Misleading Optimism

Make no mistake about it: 3-D printing is real and will likely revolutionize manufacturing as we know it today. Who knows, maybe soon the 3-D printing and Green Mountain stories will morph to Green Mountain using 3-D printers to create its K-Cups. Then there's Tesla (TSLA). No talk of 3-D created Tesla cars, yet, but no dispute that the Tesla is a really cool car that has already turned the auto world on its head.

But any of these companies really worth what they're trading at? Of course not. Certainly not now.

Owning them is a gamble. Not owning them is gamble. Shorting them is, well, as Green Mountain showed yet again today -- perilous.
 As Travis Cocke of the Voss Value Fund writes in a letter to his shareholders:

"This mistake in shorting Tesla and a few other momentum-driven names has not been in misdiagnosing them as a tremendous bubble, but in inaccurately anticipating the magnitude and especially duration of irrationality inflating them. The problem for a prudent investor or bears is that events in the distant future are as hard to disprove as they are to prove, so logical arguments dissuade very few believers from buying at extreme levels."

"Everyone wants to talk about their recent successful speculative episodes. People inevitably get giddy to tell you about how they bought Solar City calls before a pop or day-traded a triple-leveraged ETF."

"I vaguely remember a striking quote from the showman David Blaine that I'll paraphrase. Although I cannot quite remember the context, that is not what's most important: 'As a kid I liked to hold my most prized possession out the window of my parent's car as we sped down the highway, seeing just how lightly I could hold onto it without losing it forever."

"Like Mr. Blaine, some participants in the market are aware that they are tap-dancing on thin ice and perhaps actually enjoy the thrill and sense of danger of losing their personal savings or previous investment gains (easy come, easy go), while others are altogether oblivious to the risks they are taking and to quote GG who likes to quote GG (George Giannukos/Gordon Gekko) they 'don't know the difference between livestock and preferred stock'."

"These noise traders are vehemently defending or promoting stocks with impassioned garble that 90% of the time neglects what is most central to any investment decision: valuation. More and more we hear the meme that valuation doesn't matter..."

 And it doesn't, until it does. Just ask investors in Voxeljet.

--Written by Herb Greenberg.

Herb Greenberg, editor of Herb Greenberg's Reality Check, is a contributor to CNBC. He does not own shares, short or trade shares in an individual corporate security.


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Herb's Tweets

Select the service that is right for you!

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
  • Weekly roundups
Real Money Pro

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
Trifecta Stocks

Trifecta Stocks analyzes over 4,000 equities weekly to find the elite 1% of stocks that pass rigorous quantitative, fundamental and technical tests.

Product Features:
  • Model portfolio
  • Trade alerts
  • Recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
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
  • Weekly roundups
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
  • Upgrade/downgrade alerts
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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Growth Seeker

Chris Versace, using sophisticated stock screening and fundamental research, identifies potentially explosive small and mid-cap stocks.

Product Features:
  • Model portfolio
  • Small-cap and mid-cap focus
  • Intraday trade alerts
  • Weekly roundups
Daily Swing Trade

Master swing trader Alan Farley uses his sophisticated software screens to review thousands of stocks each day for you, to find just the handful that meet his demanding criteria.

Product Features:
  • Daily commentary and coaching on swing trading
  • Technical charts and analysis
Top Rated Stocks Top Rated Funds Top Rated ETFs