I stripped my portfolio to the barebone core position to lock in some profit, cut out the losers, and raise cash to 45%.
Of course, I’m keeping DDD, SSYS (they seem to be UNSTOPPABLE!!!) and a few other choice selection.
With a “new industrial revolution” postulated by The Economist’s article, I just don’t see how any meaningful correction can take place with DDD & SSYS. My take is that there are many buyers on the sideline waiting to jump in at any opportunity. I took profit late last week on my added position in DDD & SSYS but bought them back early this week ’cause the correction I was hoping for did not happen.
Between DDD & SYSS, I can see SSYS being the stronger mover due to the fact that they are merging with Objet. As an anticipated IPO, I’m sure many were looking to buy into Objet. The fact that there were no IPO but a merger, to me, is a Godsend for those who doesn’t want to pay thru their nose with the IPO price.
Here is “my” vision…
Imagine factories across the US installed with hundred (if not thousand) of 3D printers… you can see row and row of these printers in different sections of the factories.
Customer 1 called, “I need 3,000 of widget 1 and I need it tomorrow! Can it be done?”
Factory order taker, “I got 500 printers open up this afternoon, I can retrofit these printers to crank out your widget. Will end of day tomorrow be good enough for you?”
Customer 1 response, “Fantastic! PO (purchase order) is on the way!”
Voila, just in time manufacturing capability is becoming available for items that normally take months to make. Overstock inventory will become a thing of the past. Instead of printing for prototyping, 3D printer can actually prints finished goods! This is called additive manufacturing.
With the power to keep inventory under control and at a minimum, can you see how “valuable” this 3D printer technology can be?
SSYS may have the potential to be a leader in this regard… but what do I know, I’m buying both DDD & SSYS to cover my bet.
Needless to say, I added more SSYS today.