Sunday, April 28, 2013

"Short and Sweet this week with a speculative pick of 3D Systems, (DDD), to expand your investment horizons"

Dow Jones Industrial Average  14,712.55  (UP) Week ending 04-27-2013 

Sometimes you need to go off the grid and just add a stock that is in such a new dynamic industry that their hyper potential growth makes the numbers look all kind of crazy. My daughter's boyfriend Ray mentioned these 3D printer stocks to her a few weeks ago as an area in which he thought he would like to invest, so I stored the idea away in my memory bank for further observation. 

So, this week, when I saw that a University of Texas student made an AK-15 rifle with a $1000.00 3D printer, out of composite parts, the light bulb finally went on in my head that you could build virtually anything with these 3D printers; anything.  And they are.

3D Systems Corp. (symbol DDD, $34.57) has the most revenues of any company in this 3D printer space, (354 Million in revenues in 2012), which also includes Stratysys , (symbol SSYS), and a bunch of smaller players.  

                                                      This is a speculative pick, so my 
normal metrics do not apply. Return on Equity at 10.82%, a little lower than my preferred 15%, but with a PEG ratio of 1.02, which is perfectly fine. 

3D has a contract in place to build composite parts for the Lockheed F-35. Now we're talkin'!

Your mind could go wild with what you can build with these printers.
How about prosthetic legs? Doing it!

You've just gotta own this thing and you need to buy some as soon as you can. If you are looking for a May swoon, start with a smaller position and average in on your buys.

Here are some numbers:  Projected Long Term earnings growth 20.88% . 5 year sales growth 30.90 %. Forward PE 33.45. The rest of their numbers are all over the place. They have a clean professional website, which I like in a stable company. 

The one year Total Return on the stock is 77.22% and the 3 year total return is 566.52%.  It has actually been quiet in the first 4 months of this year, so it's a good time to jump in. I bought 50 shares to start out with in my IRA this week. 

So, let's get building stuff, and raising revenues and making money. It all seems pretty straight forward to me.


No comments:

Post a Comment