Is Your Portfolio Ready for a 3-D Printing Revolution?

By

Published July 21, 2014

| FOXBusiness

Let’s talk about Stratasys, Ltd. (SSYS).

I’m pretty sure I was one of the first guys to talk about 3-D printing on TV. As a matter of fact -- the first time I recommended this stock to my subscribers on July 18, 2003 it was $41. I again became real excited about the space in 2012, and after waves of doubters and short attacks, I think this stock is ready to go up -- and I think people should own it. Now, there are some goofy ideas for 3-D printing, but make no mistake this technology will revolutionize just about everything. I’m talking architecture, automotive, commercial production, defense, dental, education, entertainment, the medical industry-- all of it.  

Stratasys has made smart acquisitions, including Makerbot and recently a company called Solid Concepts and Harvest. In the most recent quarter, revenue was up 54%, the gross margins were up almost 61%, operating margins were up 22.8%. On the retail side, the company has entered into a deal with Home Depot (HD), it’s going to sell units on its website and certain brick and mortar stores. As a pilot, I wouldn’t be surprised to see that go national just in time for Christmas.

But the real big money is going to come from manufacturing. The street has modeled for 25% annualized growth over the next several years, but I think that’s too cautious.  Yes, it’s a volatile stock.  Yes, 13% of the float is short. But, I’m looking for a move to $116, I’m looking for a breakout there. When it goes through there, north, I’m looking at $160, and I think that could be an understatement.

DISCLOSURES

Stratasys, Ltd. (SSYS)

Owns

Family Owns

Firm Owns

Investment
Banking

CHARLES N N Y N
HITHA N N N N
TRACY N N N N
MATT N N N N
KATE N N N N

 

URL

http://www.foxbusiness.com/investing/2014/07/21/is-your-portfolio-ready-for-3-d-printing-revolution/