{"id":44590,"date":"2013-11-26T05:50:47","date_gmt":"2013-11-26T10:50:47","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=44590"},"modified":"2013-11-26T05:50:47","modified_gmt":"2013-11-26T10:50:47","slug":"three-irrefutable-signs-were-in-a-3-d-printing-bubble","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/11\/26\/three-irrefutable-signs-were-in-a-3-d-printing-bubble\/","title":{"rendered":"Three Irrefutable Signs We\u2019re in a 3-D Printing Bubble"},"content":{"rendered":"

By WallStreetDaily.com<\/u><\/a> <\/p>\n

In an unsuspecting lab – tucked inside an office complex somewhere near the base of the San Gabriel Mountains – Charles W. Hull developed a system for generating three-dimensional objects by “printing” several thin layers of an ultraviolet, curable material.<\/p>\n

Or, in layman\u2019s terms, he developed the first 3-D printer.<\/p>\n

You can read all about it in an obscure patent filing at the U.S. Patent and Trademark Office (#4,575,330<\/a>). But here\u2019s the most important detail of all\u2026<\/p>\n

The filing was made way back in 1984.<\/p>\n

That\u2019s right. The technology at the epicenter of hype today, which some believe will usher in the next Industrial Revolution, officially launched some 30 years ago.<\/p>\n

What the heck took so long for the technology to take off?<\/p>\n

The same thing that\u2019s preventing every middle-class family from purchasing a brand spanking new, fully electric, Tesla<\/b> (TSLA<\/a>) Model S sedan: cost.<\/p>\n

For years, 3-D printers were prohibitively expensive, costing more than $100,000. Fast forward to today, though, and any hobbyist with a couple grand can print as many ABS and PLA plastic tchotchkes as he wants. <\/a><\/p>\n

But will the democratization of this truly innovative technology really spurn a mega-billion-dollar revolution? And, more importantly, is it a trend we can invest in for handsome profits?<\/p>\n

You Missed the Boat\u2026<\/b><\/p>\n

Pick any old clich\u00e9 about being too late: You missed the boat\u2026 The train has already left the station\u2026<\/p>\n

They all apply.<\/p>\n

The time to invest in 3-D printing stocks is not <\/i>now. It was back in 2010.<\/p>\n

That\u2019s when the innovating technology was \u201cpercolating in online discussions, at conferences and among the nerdosphere,\u201d as The New York Times<\/i> put it.<\/p>\n

Nowadays, though, awareness of 3-D printing has gone mainstream.<\/p>\n

Case in point: The August 2013 issue of Delta Sky Magazine<\/i> includes a feature story on the technology, titled \u201cThis is Just the Beginning.\u201d<\/p>\n

Remember, we\u2019re talking about an airline rag here, not a forward-looking media publication like Gizmodo or Fast Company<\/i>.<\/p>\n

I don\u2019t think any airline magazine has successfully called a trend early. Ever<\/i>.<\/p>\n

For good measure, here are three more telltale signs we\u2019re in a 3-D printing bubble\u2026<\/p>\n

~3-D Printing Bubble Sign #1: Even Gartner Sees Excessive Hype<\/b><\/p>\n

Every summer since 1995, top tech research firm, Gartner, has released its Hype Cycle Report<\/i><\/a>.<\/p>\n

Per its own billing, the \u201creport assesses the maturity, business benefit and future direction of more than 1,900 technologies and trends.\u201d<\/p>\n

In this year\u2019s report, the hype surrounding 3-D printing got so out of hand that Gartner felt compelled to break out the trend into two components – \u201cConsumer 3-D Printing\u201d and \u201cEnterprise 3-D Printing.\u201d<\/p>\n

And guess what? The former is perched right atop the \u201cPeak of Inflated Expectations,\u201d which is quite instructive\u2026<\/p>\n

You see, most of the hype surrounding the 3-D printing space involves the belief that every office, school and<\/i> home will soon own a 3-D printer.<\/p>\n

The truth? 3-D printers probably won\u2019t ever go mainstream. The majority will be used by enterprises. In fact, nearly half of the global revenue generated by 3-D printers comes from prototypes and other design-related work, according to Wohlers Associates.<\/p>\n

In turn, bidding up 3-D printing stocks on the premise that they\u2019ll be as ubiquitous as smartphones is just plain foolish.<\/p>\n

~3-D Printing Bubble Sign #2: Market Cap Far Exceeds Market Size<\/b><\/p>\n

Wohlers estimates that the 3-D printing industry generated $2.2 billion in global sales in 2012.<\/p>\n

However, the market capitalizations of the two biggest 3-D printing companies – 3D Systems<\/b> (DDD<\/a>) and Stratasys Ltd. <\/b>(SSYS<\/a>) – currently checks in at a combined $13.05 billion.<\/p>\n

Even if the two companies collectively account for 100% of the industry, which they don’t, that implies a staggering price-to-sales ratio of 5.93 for the industry.<\/p>\n

In comparison, the average stock in the S&P 500 Index trades at just 1.6 times sales.<\/p>\n

If pundits think the S&P 500 is in bubble territory at 1.6 times sales, 3-D printing is way<\/i> beyond that point, based on the same metric.<\/p>\n

~3-D Printing Bubble Sign #3: Look At the Chart!<\/b><\/p>\n

As John Maynard Keynes famously observed, \u201cThe market can stay irrational longer than you can stay solvent.\u201d<\/p>\n

If we look at the price chart for the 3-D printing pioneer, 3D Systems, it\u2019s clear that we\u2019ve entered the \u201cirrational\u201d stage.<\/p>\n

\"\"<\/p>\n

When I first recommended the stock to WSD Insiders<\/i>, shares traded hands at a split-adjusted $7.85. Now they fetch north of $72, representing a rally of more than 600%.<\/p>\n

As you can see in the chart, a substantial portion of those profits came in 2013, too.<\/p>\n

Bottom line: This is not <\/i>the time to be buying into the 3-D printing hype. The downside far outweighs any further upside potential.<\/p>\n

Turning Bubbles into Profits<\/b><\/p>\n

Don’t fret, though. There\u2019s still an indirect way to profit from the 3-D printing boom.<\/p>\n

How? Well, if you take another look at the chart above, you\u2019ll notice I included the performance of a mystery stock.<\/p>\n

It hasn\u2019t participated in the recent run-up for 3-D printing stocks. Yet it makes a device that\u2019s vitally important to the long-term growth of the 3-D printing industry.<\/p>\n

In tomorrow\u2019s column, I\u2019ll share the company\u2019s identity – and, more importantly, why I\u2019m convinced the stock could easily double from current prices. Stay tuned.<\/p>\n

Ahead of the tape,<\/p>\n

Louis Basenese<\/p>\n

 <\/p>\n

The post Three Irrefutable Signs We\u2019re in a 3-D Printing Bubble<\/a> appeared first on Wall Street Daily<\/a>.<\/p>\n

Article By WallStreetDaily.com<\/u><\/a><\/p>\n

Original Article: Three Irrefutable Signs We\u2019re in a 3-D Printing Bubble<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By WallStreetDaily.com In an unsuspecting lab – tucked inside an office complex somewhere near the base of the San Gabriel Mountains – Charles W. Hull developed a system for generating three-dimensional objects by “printing” several thin layers of an ultraviolet, curable material. Or, in layman\u2019s terms, he developed the first 3-D printer. You can read … <\/p>\n

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