3D SystemsThe time may be right to start buying 3D Systems shares while they are down.
Some investors out there may be wondering if now is the right time to buy shares in 3D Systems (NASDAQ: DDD).
After the shock news that 3D Systems founder Charles (Chuck) Hull sold more than 50 per cent, or 18,000 shares, in his company last week, the tech investor set is abuzz once again with speculation as to the possible future for the sector.
The Motley Fool's Isaac Pino and Blake Bos reported yesterday (March 17th) that as the unit price of 3D Systems has plunged by 30 per cent since the $46.53 zenith it hit in late January 2013, investors are in two minds about 3D printing stock.
The analysts discussed whether or not they believe the recent jettison has provided a good opportunity to get in at cheaper prices, or if investors should be biding their time for a better bargain.
Mr Pino explained that 3D Systems is definitely not as high-priced as it was, which may be down to the growth factor.
While the lack of clarity surrounding the organic growth of the company has been cleared up to some extent by the organisation, there are other issues emerging. Nevertheless, 3D Systems now has a better entry point than it did a couple of months ago.
He noted that there is the "expectation that 3D Systems can capture all the gains of the 3D printing revolution and Stratasys too - but this is not always the case".
Mr Pino noted, however, that while it is positive 3D Systems is buying growth in the form of acquiring smaller companies, the flip side is how much of its expansion is organic? But even with this in mind, its entry point "is much better right now".
Mr Bos agreed that the big story with 3D Systems is its organic growth, however, he explained that this might not be visible to investors until 2014.
"Personally, if you look at if from a cash flow basis, the company has increased cash flow tremendously year by year. Earnings wasn't the same story, but cash flow per share was better than earnings per share," he concluded.
Seeking Alpha's Mikko Dahlbom was also cautiously optimistic in his outlook for 3D Systems yesterday.
He stated that the company's shares have regained some of the ground lost in February, but the stock price continues to slide due to insider selling.
The expert believes this year 3D Systems will introduce new printers to its range, strengthening its position as a market leader, while investors should consider this stock while it remains down.