After a historic run-up, it’s been a
tough 2014 for DDD investors
• 3-D printing caught the attention and imagination of investors
coming out of the Great Recession.
• Just those who invested in the idea behind a “computer in every home”
profited in the 1980s and 1990s, many believe there will one day be a 3-D
printer in every home in the coming decades.
• As more and more investors jumped on the bandwagon, and 3D Systems
continued to show impressive growth rates, the stock sky-rocketed
• Since January, many have decided to take their profits, causing the
entire sector to crater.
• Some now think stock prices became detached from reality--at its height,
3D Systems sold for over 100 times earnings
• 3D Systems and its counter-parts could still be lucrative investments moving
What’s Going on Here?
• The big knock on 3D Systems has
been that its growth has come
through acquisition, not strength of
business. Listen in for the company’s
organic growth rate. Anything above
25% would be great news for
What should investors watch?
• The company makes
gyroscopes that can
sense movements in
• The Wii controller was
the first and easiest
example of this
• Today, smartphones and
tablets use these
devices as well.
InvenSense (NYSE: INVN)
• Some investors are betting against
INVN because its stock is
expensive—with negligible free
• The company also relies heavily on
a few key customers. The top three
accounted for half of all revenue in
• Actual earnings, as well as
company guidance, will be the
biggest factors to consider.
What to look for…
• The company is the
• It recently expanded
into e-cigarettes under
the Zoom brand-name
• Over the past year, has
increased its exposure to
real estate development
Vector Group (NYSE: VGR)
Unknown. No analysts follow the
company, and earnings have yet to
be announced, though they were
held on April 30th last year
• One of the biggest reasons investors
like Vector is because it offers a 7.7%
• This, however, won’t be sustainable
unless Vector produces some serious
free cash flow.
• Also, pay attention to future plans for
the real-estate business, which
currently accounts for just 4% of
What to look for
• Trying to time the market can be hazardous to your
wealth. Instead, find great companies that are worth
• We can get you started with this special free report:
• The Motley Fool’s 3 Stocks to Own Forever!
Again, don’t try and profit from
A particular slide catching your eye?
Clipping is a handy way to collect important slides you want to go back to later.