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Technology Stocks : 3-d Systems (TDSC)

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To: Stratajema who wrote (43)5/7/1997 4:17:00 PM
From: Stratajema   of 132
 
It's always disappointing to learn that a supposed growth company like TDSC can't find anything better to do with their cash than buy back their own shares. Since this company will be operating at a loss this quarter they need to rely on their cash to fund any future losses, infrastructure improvements, acquisitions etc. Investing the cash in R&D or acquisitions could lead to higher sales growth and ultimately provide a greater benefit to long term shareholders than buying back shares. I make this statement while taking a longer term view of 3D's business over the next 5 years.

3D has certainly shown an excellent technical competency as reflected in the product designs they have mastered. However, their upper management competency is more questionable after today's news of a share buyback. Individual stocks go up and down all the time and sometimes they become oversold, however, this doesn't mean a company should automatically adopt a share buyback program.

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