Why am I bullish on SSYS and DDD? Every bull market has some leading stocks. If this bull market has another up leg as Jan. barometer goes this year, SSYS and DDD will be much higher than current prices. 3D is only in nascent stage, and mass production is near reality.Like any high tech sector, people always doubt its future in the beginning.
When you pick stocks based on p/e, p/b ratios, you will not pick MSFT, CSCO,,, back to 1990s, thus missing the chance to make a fortune. valuation metrics can be better used to revalue value stocks,or depressed stocks. For high growth stocks, p/e is meaningless.
Technically, SSYS and DDD got good support at MV50 line, and are close to finish consolidation. At this price levels, the downside is limited, but upside is huge.
I added back some shares last week as other players did.
SSYS and DDD are horrible investments at these levels. I see support for SSYS at around $60 and for DDD at around $60. As short interest decreases, the upside from short covering we saw last month will be somewhat limited. Any hiccup in the market will cause these two to descend rapidly to the $60 and $40 levels, respectively. If long, buying way out of the money March Puts is a good insurance strategy.