How many investors are scratching their head wondering why this is dropping so suddenly without frontpage news?
I'd really like to know. Any more well wishers?
At a time when the DOW and the S&P at at an all time record high for a few days straight. Why is DDD suddenly dropping like a rock since this mid week without any major frontpage news other than boilerplate news articles indicating which stocks are posting the largest % drops etc?
Do you make ur investment decisions based on these front page news? So if there is no article explaining it to you, you dont understand whats going on?
Simple. This just began what will now be a long phase of what AAPL experienced since late last year. The hedge funds that were able to tolerate holding this bubble will fold their hand on this one from the 13th onwards. There will be massive sell orders as they wind down their positions in DDD.
Reason is simple. Share dilution and their plans to do more aggresive acquisitions that will put a huge damper on their stock price for a very long time. Holding DDD is dumb money and these funds and major shareholders will move on to other stocks while they sort themselves out during this period. Dont listen to those dumb folks who claim share dilution is nothing. These guys know nothing about wallstreet.
This time, the drop is not about popping the 3D printing bubble. This time it is DDD specific.
I see a price target of $17 at this point. I was long earlier this week before the 13th with a floor estimated at $32. Not the case any more. The only thing I see changing this outlook between now and the rest of the year is if there is news that an activist investor of some kind decides to buy in to DDD before March 28th and take an activist proxy fight with the board. Short of this happening, and come and pass mid May following their passing of their resolutions, this stock will tank a big one one more time. Another few quarters after this, will you begin to see interest in DDD again.
This makes DDD a huge liability for the short term play.