RE: [rp-ml] Fabber stocks

Everything has to be taken with a grain of salt but here’s a few interesting items …

3D Systems (TDSC) opened up a service bureau with 3D ProParts. So that opened up a whole new market for them. Stratasys (SSYS), on the other hand, already had that going for them at the time (with RedEye) which was already factored into their earnings. Hewlett Packard came on board with SSYS which WallStreet seems to fancy. However, that spike actually scares me because the overwhelming majority of people have no idea what the additive industry even does, so might can be easily impressed by HP (something they can relate to) regardless of whether or not there is any actual value there. The thing that worries me about SSYS is that plenty of smaller companies are now releasing machines that seem to be carbon copies of the FDM technology, and they seem to be doing this without getting sued. Stratasys does an amazing job with the FDM technology but they seem to have all of their eggs in one basket (who doesn't own a Dimension these days) while 3D Systems is diversified among nearly all of the additive technologies. For these reasons, I’ve always been baffled by the fact that SSYS is a larger company (according to the market cap) than TDSC. It doesn’t surprise me that SSYS P/E ratio is 99.2 as I write this while TDSC is a more comfortable (but still very large) 52.5. Nevertheless, you can’t overlook the fact that SSYS has no debt, period, which is very impressive. So who knows. I'm just a guy with a business degree who works in the RP industry.

In conclusion, I think we all need to order our RP parts from me over at little ol’ GROWit and watch my video blogs: www.GROWit3D.com/videos

Hope everyone is having a great weekend!

Michael Armbruster
michaela@GROWit3D.com

________________________________________
From: owner-rp-ml@rapid.lpt.fi [owner-rp-ml@rapid.lpt.fi] On Behalf Of RPES Account [rachelp@rp-editorialservices.co.uk]
Sent: Saturday, January 15, 2011 1:04 AM
To: Marshall Burns
Cc: <rp-ml@rapid.lpt.fi>
Subject: Re: [rp-ml] Fabber stocks

I would say that the spike in January for Stratasys was a result of the HP agreement, which made people sit up & take notice and injected a healthy dose of confidence. The spike for 3D, in my opinion, will be as a result of the numerous acquisitions it made throughout the year & continues to make.

Best, Rachel

Rachel Park
RP Editorial Services
T: 01244 533674
M: 07515 741188
E: <mailto:rachelp@rp-editorialservices.co.UK> rachelp@rp-editorialservices.co.UK<mailto:rachelp@rp-editorialservices.co.UK>

Sent from my iPhone.

On 15 Jan 2011, at 08:35, "Marshall Burns" <ListMail2@fabbers.com<mailto:ListMail2@fabbers.com>> wrote:

Doing some year-end analysis, I’ve noticed that 3D Systems stock is up by a multiple of about 3 over 2010 and Stratasys by a multiple of about 2. This may be the best annual performance of the industry’s stocks since 3D’s big spike in its early days in 1989 (which it completely lost in 1990).

I ran some charts at Yahoo to see this in more detail. The following two charts compare the stock performance of 3D Systems and Stratasys with the Dow Jones and NASDAQ (“IXIC”) indices. The first one covers last year, and the second the maximum range of the Yahoo interactive charts:

                <http://www.fabbers.com/image/stocks/FabberStocks-2010.jpg> www.fabbers.com/image/stocks/FabberStocks-2010.jpg<http://www.fabbers.com/image/stocks/FabberStocks-2010.jpg>
                <http://www.fabbers.com/image/stocks/FabberStocks-1991..2010.jpg> www.fabbers.com/image/stocks/FabberStocks-1991..2010.jpg<http://www.fabbers.com/image/stocks/FabberStocks-1991..2010.jpg>

In the 2010 chart, we see that Stratasys had a very sharp spike of about 50% around the middle of January, and then added about another 50% rise over the rest of the year. 3D, on the other hand, grew in value by about 50% over the first 10-1/2 months, had a large spike around the end of October, and then continued to climb from there. More interestingly, both stocks have left the broader market’s impressive gains for the year in the dust.

In the longer-range chart, Stratasys is the star, multiplying in value over 18 times since its inception in 1994, with 3D not quite doubling since either 1991 or 1994. We see in this chart the painful experience of those of us who were here ten years ago, when this industry completely sat out the huge tech boom of the late 90s. But then in 2003, Stratasys began to outpace the NASDAQ, and has continued to do so ever since.

I’d like to ask what people here think of the stock performance of these two companies over the past year. Is it based in actual technology or business developments, or is there some other reason the market is taking interest in these companies like it hasn’t before? Was there a discernible reason for Stratasys spike in January, and for 3D’s in October? Also, does anyone know of any other public companies in this industry today, now that DTM, Helisys, and Soligen are gone?

Regards,
Marshall Burns
<http://www.fabbers.com>www.fabbers.com<http://www.fabbers.com>
Received on Sat Jan 15 20:10:59 2011