Nice little snap back on Friday. Looks like the sell off on Wednesday was fear of the 4Q loss and Thursday was panic for the same.
Revenues and unit shipment continued to grow. 4Q loss due to inventory adjustments (one time?) and expense problems in Europe which are subject of action by the CFO. New desk top product and new polymer would seem to be cause for optimism in this very competitive industry.
Why should this stock not be back to the $10 to $12 level in the near future?
This whole industry is competing for market share. My question, is this market saturated? The industry revenue projections from 1988, fall way short of what is real today. This industry could have explosive growth if they do the correct things. Price wars are not the answer. Increased capabilities and specific targeted solution selling will help progress this industry and make us all very happy investors.
I expect the problem here is that the technology is still so new that many who might be able to use it are unaware of the product or its capabilities. One thought, could a custom jewelry store make one of a kind pieces on demand, using 3D software to design it and show on screen with the customer participating, then run off a mold in the new desk top device? How about custom parts for vintage whatever - cars, planes, etc. It looks like medical applications are one area where a lot of thought is going into new apps. Perhaps we need a lot more 12 year old kids with their own computer consulting business to learn about this and start competing on novel constructions.
I agree that price wars will not help. The problems is that there are a lot of smart people with huge egos who will think they can do it better, cheaper, faster, etc. Once they have sunk the front end investment to get something working they will be loathe to give up without a fight.
It seems to me that 3D Systems is the quality product and company in the market. That does not guarantee success but it is an advantage. Shoddy products disappoint but it may take a while for people to realize that $30,000 for something that causes them to deliver a shoddy product to THEIR customers is not as good a bargain as a product that helps them deliver quality themselves.