Re-analyzing 3D Systems Corporation

I published a new article detailing my views and current position with regards to 3D systems. I am convinced the boom is not over, and I am long the stock. Read for more details.

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3 thoughts on “Re-analyzing 3D Systems Corporation

  1. 3D Systems might have bet a little too big on starting patent wars with other 3D printer manufacturers. The lawsuit with Formlabs ( http://formlabs.com/blogs/blog/6974594-our-number-one-priority ) was a boneheaded management mistake which turned many a 3D printing enthusiasts (and pros) off 3D Systems’ products. I wouldn’t buy their Cube printer just in principal: they are suing open source manufacturers while at the same time they build a product that uses technology perfected by open source.

    1. Sorry I had not replied to this until now. You have a good point: from a PR perspective, the patent wars are a nightmare.

      However, the fact remains that they have fantastic patent protection hedging their place in the industry going forward. This can lead to unanticipated upsides – a competitive advantage against other manufacturers, and, yes, maybe cash from lawsuits. I am mainly negative about the stock because of its absurd valuation, and a shift in the perception of the industry.

      1. I hear what you are saying but having “fantastic patent protection” as you put it is only a part of the deal. You still need to be able to sell your products. If an entire community of your potential customers is up in arms about your business ethics, that’s not going to help you move product. And that’s quite a bit of a downside.
        The way I see it: 3D Systems is coming from many years of existing in the B2B ecosystem where PR might not even be an issue. Sue anyone you want, since not many people have heard about you in the first place, that’s not going to matter much. Now that they are trying to compete on the consumer grade market, PR is everything! They don’t seem to be adapting to the new mode of operation well and that’s actually a pretty bad fundamental sign.

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