Trade of the Day: Short 3D Systems Corporation (DDD) Stock

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3D Systems Corporation (NYSE:DDD) — This leading provider of 3D printers, content-to-print solutions, print materials and custom parts for consumers and professionals turned a small profit in 2014 but lost $5.85 in 2015, and Standard & Poor’s forecasts a profit of 40 cents this year.

They predict an increase in revenues of 8.3% in 2017 following a decline of 3.4% for 2016. Thus, S&P recommends “Hold, with a three-star rating” and a price target of $15.

However, they have concerns over new competition from larger manufacturers but see healthy business prospects given enough time. The company has shifted from focusing on consumer products to providing more printers to medical and other professionals. But slower-than-expected adoption of 3D printing, more price competitions than anticipated and narrower-than-expected profit margins have restrained profits. S&P adjusted its earnings forecast for 2017 to 50 cents from 56 cents.

Since blasting to a high at over $18 in April, DDD has traded in a wide range from $12 to $18. However, within the last two weeks the chart has taken an ominous turn: A Death Cross (50-day moving average crossing below the 200- day moving average) and strong sell signal from my CBR indicator, coupled with a close below its 50-day moving average, place the overall trend in jeopardy.

At the least, the stock appears to be headed for a test of its support line at $12.

Thus DDD appears to be a short sale at above $14 with a target of $12 for a proposed return of over 16%. As with all short sales, a stop-loss order should be placed to protect against a theoretically unlimited loss ($15 stop is suggested).

DDD Sell Short 14 T 12
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Trade of the Day: Short 3D Systems Corporation (DDD) Stock


Article printed from InvestorPlace Media, https://investorplace.com/2016/12/3d-systems-corporation-ddd-stock-short/.

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