read this, how they are manipulating their revenue?
I have heard of acquisition synergies before, but this is truly extraordinary. How can a low growth company, only a few years removed from near-bankruptcy, now outperform 99% of all publicly traded companies? Is the 3D printing market growing exponentially? Bullish organic growth rarely explains a turnaround this dramatic. DDD's acquisitions must be jet-fueled. Let's take a closer look. Here is a summary of its acquisitions:
When DDD buys a company, it immediately incorporates the acquisition's revenues into its own. This is how the CFO, Damon Gregoire, explained it in DDD's Q3 earnings call:
"Specifically, we count newly acquired business revenue from the date of acquisition until its 12-month anniversary as acquired revenue. From its 12-month anniversary forward, we add the actual total first year revenue to our total base and count only the incremental revenue growth going forward on our total base as organic revenue."
I've traded this stock a lot and just looked over the article. There is very little organic growth from the company. This could be Enron all over again. Volume was heavy today but not institutional dumping heavy. I would wait until the dust settles here.
I read the entire article and found nothing wrong with their acquisition accounting methods, some massaging yes but not overly aggressive. Holding a controlling interest means pro-rata share of acquired company's revenues being included is perfectly normal (though I haven't looked at their minority interests).
Also, with almost 20+ acquisitions I personally would not realistically expect the company to take on the time/cost to break every single one down in the 10-Q if they are not required by SEC.
With the Price/Mix and stock options financing, he is literally accusing the company AND its auditors of fraud. That is hard to believe.