As the zones in digital, and physical dominions, continue to mystify, the global economy endures to be redefined by the progresses achieved in the Global 3D printing industry.
City Group analyst Kenneth Wong’s prognostications have substantially flared-up the 3D printer makers, and accordingly market expectations from the 3D printing players are growing to new levels. Despite all the hype that surrounds I have tried to maintain a clear outlook on the subject.
While I have seen the technology at work and it’s quite exciting too, I am sarcastic though, if this technology will ever break out from the realm of a hobbyist, experimenting in the basement. Or will it ever burst into mainstream manufacture, of high volume commercial parts? Well that remains a lingering concern.
Sector valuations are relatively expensive, with established players like 3D systems sustaining PE values above 100 and Stratasy’s well above 150. It’s my candid argument that, this is lot to pay, for companies that are yet to establish themselves.
However, it’s fair to say we can believe the excitement that surrounds the sector, if Wong’s foresights are to be relied that the sector would triple in the next couple of years. Wong’s prophecies are broadly correct, in its specifics; rest assured the 3D printing hype is real.
I am intrigued by the fact that the technology compliments, and has the potential in diverse fields such as architecture, construction, printed electronics, and bio printing of implants. Though, that value chain does not make an impeccable case for the small investor to jump without caution.
I am not of the belief that this sector has the potential to reward with decent returns to its stake holders in the long term, say 10 to 15 years down the line, like it was once with the IT sector. So this sector is for folks who are always on the alert and love to adjust, and change, with developments.
Rather than jumping into the craze at current levels, be on alert as this sector is still in its infancy. And also there are a good amount of pump and dump operators, and newsletter hawkers circulating hype stories about companies that are yet to establish.
When looking for opportunities, to invest in this arena, the judicious move is to watch for near term developments into the sector. Cash in on the occasional up moves, and leave.
Given the media attention, and newsletter sellers hyping, it gets very difficult these days, to find a viable stock that allows you to buy at the bottom.