Printers have become obsolete with the ability to send emails, documents and faxes from PC to PC. However, some new printers have lost their excitement despite an increasing number of users.
The 3D printer market is hardly ever discussed in the media. This hot sector has cooled despite a growing business of printing parts on demand rather than having them machined at great expense. This is another example of fad stocks turning into boring industrial stocks.
NEW BULLISH Plays
No new bullish plays
NEW BEARISH Plays
SSYS - Stratasys Ltd
Stratasys is a maker of 3D printing systems and parts. The company makes parts for other equipment using its proprietary 3D printing systems. They manufacture for sale production systems under the Dimension, Objet,Fortus, Polyjet, SolidScape and MakerBot brands. Full Company Description
While the 3D printing business is expanding in scope and acceptance all around the world the excitement over 3D stocks has faded. XONE, DDD and SSYS shares have been fading since their peaks back in 2013. Stratasys closed at a new six-year low on Friday despite a minor rebound with the rest of the market.
I debated which 3D stock to short and picked SSYS because of the identifiable trend and it has farter to fall than competitor 3-D Sys Corp (DDD). That stock is cheaper at $7.41 if you would rather have less at risk.
The decline in Stratasys accelerated since mid December. There have been two small rebounds along the way. I see the rebound from the 6-year lows last week as an opportunity for a short at a higher level. This gives us an obvious stop loss at $19.50 and the odds are good we will see a new low in the weeks ahead.
Earnings are March 2nd.
With a SSYS trade at $17.45:
Sell short SSYS shares, initial stop loss $19.50
Buy long March $15 put, currently 90 cents, initial stop loss $19.50
Entry disclaimer: To avoid an unfavorable entry point, we will not launch a new play if the stock gaps open more than $1.00 past our suggested entry point.
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