Home » Behavioural Investing » 3D Systems Possible Black Swan Event. But How Soon? $DDD

3D Systems Possible Black Swan Event. But How Soon? $DDD

3D Systems

3D Systems (Photo credit: Wikipedia)

3D Systems Corporation (NYSE:DDD) has watched its stock increase roughly 250% in the past twelve months. Obviously it has bested most comparative metrics. Is 3D on solid footing or is it a house of cards. Controversy is starting to abound.

The short position is 23.9% of the float and has contracted slightly in recent past. The short position should be considered bullish as it eventually needs to be covered. However shorts have their reasons and usually they do not believe in the company. Money flow uptick/down tick is 0.69. Not what you call a momentum stock.

3D is engaged in a public dispute over accounting and disclosure practices. Usually the auditor can speak to the issue but it’s not quite working out in this case. Members of the board are selling their positions. The board is off-loading. Thats worse than key executives. Not a comforting sign for the buy and hold investor.

There is also the question of a  Seeking Alpha blogger called Mr. Douglas House and separate (I believe) comments by Gray Wolf Research all of which were just recently released. Say what you want about the articles and comments managements reaction may be very telling.

I particularly enjoyed Mr. House’s Nov 26 post with this quote

DDD’s paranoid behavior, epitomized by its November 19 tightly controlled non-interactive conference call and its heavy-handed attempts to get my article removed from SA, reveals a management team that feels threatened by its own information. All of my observations, perceptions and opinions have been gleaned from DDD’s SEC documents, its website and its press releases. It is a self-inflicted conspiracy. I will be diplomatic and call the situation unusual.”

Touche for Mr. House. I must admit that I now follow him. Here is the link to the entire article. Its worth the read. http://seekingalpha.com/article/1029061-3d-systems-pardon-me-sir-could-you-spare-an-explanation.

At almost the same time Gray Wolf Research posted this blog also with Seeking Alpha http://seekingalpha.com/article/943201-3d-systems-at-the-peak-of-inflated-expectations

In the meantime you can make out the graceful outline of a black swan slowly floating into the middle.

George Gutowski writes from a caveat emptor perspective. Follow him on twitter@financialskepti