3-d Systems (TDSC) Message Board

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Technology Stocks : 3-d Systems (TDSC)

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To: Brian VanHiel who wrote (22)	2/4/1997 3:58:00 PM
From: Stratajema	of 132

Brian. >>No matter what material they pump through the extrusion head it still isn't going to have the same properties as production part. If you really want materials you need to go to RAPID TOOLING.<< This is silly Brian. You've locked your thinking into soley the tooling world where Stratasys does not sell many of its machines! >>Once Actua reaches the 'no longer fragile' state then FDM will fade into memory. This may not happen for a couple of years but it will happen. If SSYS wants to survive then it needs an entirely new technology. The chase is on and I don't think SSYS has the head-start you think.<< This doesn't make sense. If Stratasys' technology is somehow inferior then why is 3D chasing them with the Actua product which is less accurate? Stratasys doesn't have the head start? I feel three lines of prototyping machines which nicely segment their niche is a good head start. >>What I don't see is enough to support a p/e ratio of 90!<< SSYS's stock price is supported by their 100%+ growth rate. I buy this stock when it is $14-$15 and sell it at $20. (I don't currently own the stock.) Given that Stratasys is in a high growth phase, it is appropriate for this company not to flow earnings to the bottom line but to divert them to R&D. The street expects this and is not concerned. However, the expectations around 3D are different. With 3D's 25% growth rate and a fully developed SLA product line, the street expects earnings to flow to the bottom line. Since I don't currently own either of these stocks I feel I am in a good position to be objective and this is why I have compared these two companies. Brian, I think you are caught in the trap of "absolute thinking", meaning that for 3D to win then Stratasys must lose. I NEVER meant to imply the opposite, that for Stratasys to win then 3D must lose. I merely point out through this discussion that 3D needs to consider the ramifications and costs of entering another company's niche with a weak product. Customers will perform the same comparisons. If 3D is serious about entering this niche they need to improve the Actua product. But this comes only at the expense of diverting their focus from their outstanding SLA laser technology platform. I just wanted to share my opinion with investors here as I haven't seen an in-depth discussion on this thread about strategy. I'm still interested in hearing any insight into 3D's management style, etc. Regards, David

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