Sector: Technology/Computer Software and Services
#8 on our list for 2013 is 3D Systems. This is purely a look to the future of technology and is a hunch that I have that 3D printing will have a large influence in our future daily lives. The company's stock is not cheap by traditional standards but if this technology becomes a household product, there will be lots of growth opportunity in the stock.
As you can see this stock has been a big winner over the past 2 years, going from $6 per share to now over $60! Also the Volume has increased dramatically which shows very strong interest from investors. Something to remember here is that its not important where a stock has been, its important where a stock will go. Yes its up a ton, but these products are still only available to a select few, for a high price tag. My thinking is that, just like personal computers, 3D printing technology will soon be readily available to the general public. And how useful will this tech be? Well just imagine you are hanging shelves and you lose a couple screws. You can just create an exact duplicate with your printer. What if you need a certain size wrench but live 30 minutes from the nearest hardware store? Make one yourself with your 3D printer. Need a trophy for your fantasy football team? There you go!
This doesn't even scratch the surface for the uses of 3D printing technology, but the idea does seem to have interesting prospects for our future convenience.
As for the stock, its a bit too hot to go jumping into right now. The way I am looking at this is as a "fear" stock I want to buy during times of market panic. When the market gets hit by debt ceiling concerns, Europe fiascoes, or other fear inducing news panic, I want to be a buyer of DDD. All the pundits on CNBC etc are calling for a big panic sell off as we approach the debt ceiling debates in March; I would welcome this as it will hopefully provide an opportunity for me to buy into this wonderful tech company.
There are a few stocks that I want to buy if the market crashes hard and DDD is one of them. This is the type of stock that I wouldn't even have to look at it, I would just buy a bunch. Its always a good idea to have a list of some of the strongest stocks in the market and when they get hit by a general market sell-off, you want to be a buyer of those particular stocks. Because when things improve they will likely be the first and the strongest to bounce back.
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