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3D Systems: The Recent Quarter Is Irrelevant


3D Systems has corrected almost 90% from its high. As bad as the recent quarter might seem, it is irrelevant because all the bad news is baked in.

However, the sector is still growing. And while 3D Systems has hit a speed bump, it is still a fast growing company.

As such, current valuations offer a very good entry point. My price target for the company is $20-$25 a share within 12 months.

So 3D Systems (NYSE:DDD) had a bad quarter, right? Things have not turned out so good for the 3D sector, right? Does anyone remember what they were saying when 3D Systems was almost $100 a share? I'll tell you what they were saying. There was nothing but praise and how the 3D sector was going to change the way the world worked.

Well folks, the above chart illustrates what happens when you buy a stock that will change the world, but disregard what changing the world costs.

Disregard the current quarter

So if you are thinking of buying or selling 3D Systems based on the recent quarter, I have news for you, it's irrelevant. I repeat, it's irrelevant. And the reason it is irrelevant is because all the bad news (and then some) is already baked in the cake (the stock price). That's the reason why the stock is down almost 90% from its highs (chart above).

There are basically three things that should concern investors about 3D Systems from now on, and the recent quarter is not one of them.

Is the balance sheet intact?

Looking at the balance sheet tells me if there is anything wrong with the company. If the balance sheet is intact, it means the company will have a chance to come back, even if at the moment...