http://seekingalpha.com/article/2169663-stratasys-changing-the-outlook-in-3-d-printing-services-business?isDirectRoadblock=false&uprof=45
I found the above quite useful. Thought others might too.
Showing posts with label Stratasys. Show all posts
Showing posts with label Stratasys. Show all posts
Monday, April 28, 2014
Thursday, April 17, 2014
The importance of hedging
With any new technology, there are risks - the biggest being expectations and hype from the market players. In this arena, it is so easy to unknowingly become a gambler instead of being an investor.
That is why I hedge. With respect to 3D systems, this is a series worth reading and keeping in mind.
Buy low and hedge always if you are to get involved in such technologies except when you know the companies and the business first hand. Or else you can become the proverbial "next fool" to buy vapor ware. That said, for 3D, my take is that: stay with market leaders, buy low, hedge, hedge, hedge ....
http://seekingalpha.com/article/2146183-3d-printing-debunked-part-2-industries
That is why I hedge. With respect to 3D systems, this is a series worth reading and keeping in mind.
Buy low and hedge always if you are to get involved in such technologies except when you know the companies and the business first hand. Or else you can become the proverbial "next fool" to buy vapor ware. That said, for 3D, my take is that: stay with market leaders, buy low, hedge, hedge, hedge ....
http://seekingalpha.com/article/2146183-3d-printing-debunked-part-2-industries
Saturday, April 12, 2014
Time to get yourself ready to enter
Looks like we are approaching a time when some good opportunities may start coming, and this is the time to be identifying the scripts to be involved in.
Right now, consider SSYS (Stratasys), a leading 3D printing company. Its price (hitherto in the stratosphere by any metric you may wish to consider) has come down substantially but is still above what a conservative analysis would call as fair value. But if you were to buy it at the present price of 94.58 and write a Jan 15 Call with strike 90 and collect a premium of 17 dollars and change, come Jan 15, you get an exercise of the call which brings you a very solid return, or alternatively if the call doesn't get exercised then you get to own the stock at a very reasonable net price. Given that SSYS is one of the top two market share holders in this area and is vertically integrating itself well with a very good strategy, the second scenario may be better.
Alternatively, a Put with strike 85 for Jan 15 which has a premium of slightly above $10 is also a solid good strategy, although I am not sure that that put will get exercised. So, if one is keen on buying and holding the stock for the long term, may be one should consider a 95 strike put which fetches 15.80. It all depends on how much you would want to own this stock for the long run.
Read also
http://www.fool.com/investing/general/2014/04/13/3-d-printing-authority-reveals-why-they-chose-
stra.aspx
In any case, there is a compelling case to read up on SSYS and examine it more closely.
Once again, this is a market where I don't wish to buy and hold without any hedges.
Right now, consider SSYS (Stratasys), a leading 3D printing company. Its price (hitherto in the stratosphere by any metric you may wish to consider) has come down substantially but is still above what a conservative analysis would call as fair value. But if you were to buy it at the present price of 94.58 and write a Jan 15 Call with strike 90 and collect a premium of 17 dollars and change, come Jan 15, you get an exercise of the call which brings you a very solid return, or alternatively if the call doesn't get exercised then you get to own the stock at a very reasonable net price. Given that SSYS is one of the top two market share holders in this area and is vertically integrating itself well with a very good strategy, the second scenario may be better.
Alternatively, a Put with strike 85 for Jan 15 which has a premium of slightly above $10 is also a solid good strategy, although I am not sure that that put will get exercised. So, if one is keen on buying and holding the stock for the long term, may be one should consider a 95 strike put which fetches 15.80. It all depends on how much you would want to own this stock for the long run.
Read also
http://www.fool.com/investing/general/2014/04/13/3-d-printing-authority-reveals-why-they-chose-
stra.aspx
In any case, there is a compelling case to read up on SSYS and examine it more closely.
Once again, this is a market where I don't wish to buy and hold without any hedges.
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