The report also compared current printers of 3D Systems to models from previous years, and current competitor models. The previous comparisons were to show how the technology hasn’t progressed, but you’d be missing the point if that’s all you took away. The advancement hasn’t been in necessarily superior tech, but in reduced cost of printers. 3D printers have dropped in cost dramatically over the past decade and continue to do so, which is opening it to new markets, driving adoption, and inspiring innovation.
The comparison on price point stated that the Cube is far overpriced. The comparisons were cheaper but, in my opinion, of far lower quality. One looked similar to a Rep Rap project built in someone’s garage, and the other was similar, but in a spot-welded sheet metal enclosure. Hardly a compelling choice for the entry-level 3D printing customer who 3D Systems is targeting with the Cube. The competitors also lack the marketing muscle of Makerbot or 3D Systems.
The real issues
It’s great to read information contrary to your opinion to combat that ever-growing confirmation bias that investors develop after owning shares for a long time, or after a large share price increase. So, in that case, the Citron report does a decent job of aligning near-term expectations for at-home printing. What investors should really be focusing on is a few key areas that will change the industry. These are: printing material developments, new print methods or improvements, software, and online design share ecosystems (cubify.com and thingiverse.com).
In closing, and ahead of Monday’s earnings, I think what investors should really hope for is a strong pullback. This is a multi-decade long story that’s yet to be told, and I’d like nothing more than to be able to participate at a more reasonable price.
The article 3D Printing News Investors Need to Know: Citron Research originally appeared on Fool.com and is written by Blake Bos.
Editor’s note: To clarify the disclosure position outlined below, The Motley Fool owns shares of 3D Systems through both our Supernova and Pro real-money premium services. In addition to the shares it owns, our Pro premium service has written a “covered strangle” options position on 3D Systems, agreeing when the trade was set up to buy more shares at a lower price, or to sell existing shares at a higher price – while maintaining the ability to close either obligation any time. Finally, 3D Systems is a recommendation in Stock Advisor, which is not a real-money service.Blake Bos has no position in any stocks mentioned. The Motley Fool recommends 3D Systems and Stratasys. The Motley Fool owns shares of 3D Systems and Stratasys and has the following options: Short Jan 2014 $55 Calls on 3D Systems and Short Jan 2014 $30 Puts on 3D Systems.
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