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Strategies & Market Trends : Effective Collaboration - Team Research for Better Returns:

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To: richardred who wrote (1573)3/15/2013 12:59:00 PM
From: The Ox  Read Replies (1) of 8258
 
When there is this much momentum in a stock (DDD), it's hard to gauge what's causing the weakness. Is it simply profit taking after 18 months of soaring? Was this a 30 strike option competition between hedge funds?

Lots of questions. I've seen a few views that suggest once it breaks 30 that its all "look out below". We'll see.

I would think that all the stocks in this sector are pricey based on traditional valuation methodology. However, it could be a very disruptive technology, which would imply that it deserves a premium. I think the fact that DDD is an established player and has a history of slower growth than their 7.6 times price to sales ratio would imply, is a big attraction to the sharks. Very understandable, IMO.

If they can improve their cash flow, the stock may rebound but I would guess that it will be the next earnings announcement or preannouncement that will drive the stock. Until then, the trend is your friend....until there's a deadcat bounce!
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