![\"Hot](\"http:\/\/www.profitconfidential.com\/wp-content\/uploads\/2013\/08\/290813_PC_clark.jpg\" "\\"Hot")
<\/a>One of the hottest stock market<\/a> sectors related to technology has to do with three-dimensional (3-D) printing machines. It won\u2019t be long before every child wants a 3-D printer in the household. It is a hot stock market sector, and it is worth paying attention.<\/p>\nIn that regard, one of the hottest initial public offerings (IPOs) this year has been The ExOne Company (XONE). This is a company<\/a> we\u2019ve looked at several times in this column, and it definitely is a speculative stock for traders.<\/p>\n Of course, the big problem with hot IPOs is their valuation\u2014or rather, their extreme valuation in the face of a newly established enterprise. Most often there is no way to appropriately value an exciting, but still developing company. It\u2019s all about the illusion becoming real. The marketplace sees the company\u2019s opportunity and potential, and if there is a reasonable probability that it will meet its growth forecasts, Wall Street discounts the expected growth many years in advance.<\/p>\n This is how a small, but growing company like ExOne quickly earns a billion-dollar valuation.<\/p>\n Last quarter, the company missed on its sales guidance. The position retreated on the stock market, though not for long. Its recovery is emblematic of the fervor that the marketplace has for this business, which is why it is a worthy candidate for momentum traders to watch.<\/p>\n The company\u2019s one-year stock chart is featured below:<\/p>\n Chart courtesy of www.StockCharts.com<\/i><\/p>\n With the company trading around a billion-dollar market capitalization, it\u2019s very tempting for insiders and the company itself to sell more shares. ExOne fell on news of its latest stock market offering, but it recovered once again. This is a strong sign that this is a company for short-term traders.<\/p>\n And by traders, I\u2019m referring to those willing to execute orders on a moment\u2019s notice or the speculator willing to jump out of the position on any material news.<\/p>\n Investing in hot IPOs is a tough thing to do. It\u2019s difficult to keep up with all the new listings and, of course, Wall Street already knows which ones are in the greatest demand. Therefore, getting an allocation is often impossible with smaller companies.<\/p>\n But even scanning the stock market for new 52-week highs can reveal some growing companies like ExOne. It doesn\u2019t mean that a particular enterprise is worth what the stock market is currently paying; it\u2019s just a trade to see if the momentum can last. (See \u201cStartup Company with Innovative Trend Has Real Staying Power<\/a>.\u201d)<\/p>\n If you look up ExOne, you\u2019ll quickly discover the other larger players in the 3-D printing business, though there aren\u2019t that many companies in the business with an established presence.<\/p>\n Two larger companies have also been doing well on the stock market. Their valuations are lofty, but then again, they are doing one thing that most of the economy is not\u2014they\u2019re growing significantly.<\/p>\n![\"Exone](\"http:\/\/www.profitconfidential.com\/wp-content\/uploads\/2013\/08\/Exone-Co.-Chart.bmp\" "\\"Exone")
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