Shares of 3D Systems, Stratasys and ExOne, 3D printer manufacturers, fell on Thursday after Citron Research said they were vastly overvalued.
Citron Research, run by California-based investor and notable short-seller Andrew Left, issued a report ("What do a Comb, an Egg Cup, and a Justin Bieber Vibrator Have in Common?") on Thursday accusing 3D Systems' Chief Executive Abe Reichental of exaggerating advances in 3D printing and promoting a bubble in so-called "3D Printing" stocks.
Citron Research said over the past several years the CEO has described the recent transformation in this small industrial specialty niche to be
"as big as the steam engine"
"as big as the computer"
"as big as the internet"
Citron Research has been focusing on stocks that are frauds, intentionally overvalued, and those that are perched high atop a bubble. It said 3D Systems has made no significant investments and no advances to the main industrial process SLA (Stereo Lithography) or SLS (Selective Laser Sintering) as well as home 3D printing, in the last five years.
Their CubeX 2013 model which was awarded as "CES 2013 Best Emerging Tech Award" was just a BFB3000 model from year 2010 with little change.
(Source: Citron Research)
3D Systems and Stratasys declined to comment.
President Obama talked about increased manufacturing around the country and the first innovation institute in Youngstown, Ohio. "A once-shuttered warehouse is now a state-of-the art lab where new workers are mastering the 3D printing that has the potential to revolutionize the way we make almost everything," said the President.
After his speech, 3D printing stocks got a boost Wednesday morning, ExOne Co.(US:XONE) shares were up more than 6%, 3D Systems Corp.(US:DDD) shares were up more than 3% and Stratasys Ltd.(US:SSYS) shares were up 2% in early trading.
Shares of 3D Systems have tripled over the past 12 months and recently traded at more than 42 times the company's expected 12-month earnings. Shares of Stratasys have almost doubled over the past 12 months. Its stock was recently priced at 39 times expected earnings.
After Citron's report, 3D Systems closed down 4.36 percent at $62.75 and Stratasys ended 6.08 percent lower at $71.20. ExOne closed down 2.96 percent at $27.18. (Reuters)
Posted in 3D Printing Company
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ChrisC wrote at 2/15/2013 2:40:46 PM:
Citron clearly has an angle, but that said DDD hasn't been pushing the tech, and has been surfing the hype. They could have started the hobby 3D sector over a decade ago very easily, but preferred making large machines with high dollar values. It took patents expiring and the RepRap initiative to get the ball rolling. It remains a problem that a lot of really exciting printing methods are still patented by DDD but they aren't producing the low cost machines that could really turn 3D printing into an economic game changer. Even small 3d printer companies are being hamstrung by this. Take Formlabs getting sued over a trivial software tweak as an example. It would be ironic if DDD's litigation caused a chilling effect that then killed the 3D print movement and thus their stock value!