Editors’ Note: Welcome to the new Wall Street Daily Weekend Edition.
In addition to our regular roundup of top content featured at Wall Street Daily during the week that was, we’re now including extended commentary from Editorial Director David Dittman.
And highlighting this new digest is the video-based Saturday Spotlight, which will “shine” on one member of our talented and hard-working team of market analysts each week.
Enjoy! And please let us know what you think of the new format by contacting us here.
We’re well past the “Wow!” phase of the 3D printing saga.
Indeed, three-dimensional printing – or additive manufacturing – has been a “thing” since the early 1980s.
There are countless videos on YouTube demonstrating the many, many applications of the technology.
You can make items useful around the house, such as a plastic padlock or a garlic press. You can also churn out precise machinery, such as a titanium landing-gear bracket.
A University of Virginia research team created a 3D-printed drone for the U.S. Department of Defense.
And, as Wall Street Daily’s tech research team documented a little more than a year ago, Buenos Aires-based industrial designers used 3D printing technology to fabricate a prosthetic hand for an 11-year-old boy.
It’s an entertaining and perhaps not entirely useless time sink for any procrastinator with a Google machine.
Our mission, however, is to help you build wealth with fresh investment ideas, not send you down a YouTube rabbit hole.
And the latest chapter in the long 3D printing narrative provides some useful lessons about the hype cycle and how to time technology investments.
Sure, it’s easy to imagine a world where you can make anything you want just by pressing “print.” Yet we’re still several years away from “big uptake” of the technology, according to research firm Gartner.
And there are publicly traded companies out there doing pretty cool things in the 3D printing space, including 3D Systems Corp. (DDD) and Stratasys Ltd. (SSYS).
In fact, their stock charts provide perfect fodder for a discussion of Gartner’s Hype Cycle, Google Trends, and how you can see when imagination has fueled expectations and pushed share prices well beyond rational levels.
Gartner’s conclusions are subjective, but they’re based on expert analysis of copious amounts of data. The Gartner Hype Cycle is a tool that identifies stocks at the peak of inflated expectations.
The Google Trends function allows you to gauge public interest in specific companies and/or technologies. A surge in search traffic is a sure warning sign. Buyer, beware a stock the masses are Googling.
These indicators reliably notify of an imminent collapse. In cases such as these expectations have gotten well ahead of reality.
Lou’s been writing about 3D printing for more than five years. On two separate occasions Lou’s advice helped readers to triple-digit wins on 3D Systems.
And he issued a warning about a 3D printing bubble a month before share prices collapsed in late 2013.
He first recommended 3D in October of 2010…before “hype got out of hand.” A mountain of hype propelled shares of Stratasys too.
3D Systems’ third-quarter results came up short of expectations, as it missed on both the top and bottom lines. Stratasys’ revenue was soft, but its adjusted earnings exceeded forecasts.
Global macroeconomic uncertainty is weighing on the world’s two biggest 3D printing companies, with companies holding back on investment decisions that would otherwise drive sales.
These “really weak results” prompted Lou to pull up their charts. As he said in today’s Saturday Spotlight, “What I found was really just amazing… an amazing reminder of how to time a tech investment.”
Setting aside, for a moment, the hows and whens of timing a tech trade, let’s talk about a more fundamental issue. In fact, it’s the most important issue when it comes to buying stocks in the sector.
It boils down to the fact that Lou’s savvy allows him to answer the key question of whether the tech works, whether it’s 3D printing, medical devices, wireless communication, or anything around and in between those industries.
He also comprehends the big picture, understands how the pieces fit together, and, as demonstrated in today’s Saturday Spotlight, is able to identify when it’s time to act… and, crucially, when it’s time to sit still.
Lou’s insights will help you avoid common pitfalls that catch so many investors.
In today’s Saturday Spotlight Lou describes an early warning system that will help you avoid getting caught up in hype-driven situations.
Lou and his research team at Digital Fortunes provide insights, analysis, and actionable advice based on the world’s most transformational technology trends. But they also help make sure you won’t get rolled up by hype.
Another part of our mission at Wall Street Daily is to teach investors “how to fish.”
So before you rush out and buy the next hot tech stock, check the Gartner Hype Cycle and review the Google Trends data. Doing so could make the difference between being a foolish investor and being a fortunate one.
A world where on-demand manufacturing is the status quo is right around the corner.
But as with any “hot” technology, smart investors must steer clear of hype-driven rallies.
Have you cut the cord?
As is the case with additive manufacturing, a world where we get to choose the channels we want to pay for – a la carte TV – is inching ever closer.
It may not be the final frontier. But no cable or satellite providers have gone there… yet.
Senior Technology Analyst Greg Miller has the scoop on a new Star Trek series that will be delivered exclusively via CBS All Access, CBS Corp.’s (CBS) internet-based video streaming service.
It’s another development in a multi-front conflict among cable providers such as Comcast Corp. (CMCSA), video streamers such as Netflix Inc. (NFLX), and content producers such as CBS Television.
Holiday shopping season is right around the corner. I don’t know about yours, but my email inbox is already full of “countdown to Black Friday” themed solicitations.
Let’s turn the tables this year and come out ahead in terms of dollars and sense. Senior Analyst Jonathan Rodriguez has an idea that may just get us there, as he breaks down the online shopping wave.
Here’s a hint: Think “brown” this Christmas. (And I don’t mean “Charlie,” though of course this is appointment television, no matter how it’s delivered.)
Chief Income Analyst Alan Gula has been inside the belly of the beast. He knows what he’s talking about when he warns us about Wall Street strategists and their conflicted views on an industrial recession.
As Alan notes, pay attention to what company managers are saying about on-the-ground operations, not book-pitching equities analysts.
Global Markets Analyst Martin Hutchinson trains his eye on value plays this week, noting that the risk-reward equation favors dividend-paying emerging markets stocks.
Finally, Martin ventures to the Southern Hemisphere for an in-depth of evaluation of Argentina’s runoff election, slated for November 22.
Martin’s conclusion: If you’re looking for international exposure, Argentina holds plenty of promise, should pro-business candidate Mauricio Macri prevail at the polls.
And thanks for taking time out of your Saturday to spend with Wall Street Daily. Enjoy your weekend.