3D Systems is now waaaaay off its high, and
its CEO recently resigned.
I haven’t been following 3D Systems stock for
quite some time by now, but, after seeing an analyst’s note about 3D Systems
the other day, I took a look and, apparently (well, I guess I should say, “most
evidently”), the hype that propelled 3D Systems to a very heady share price of
just under $100 is completely gone by now.
Today, 3D System is trading at around $9.00 !!! Egads !!!
And, apparently, 3D Systems has been mired in red-ink (net income, or, I
should say, net loss) the past three quarters.
Regarding the “hyperagressive acquisition
strategy” 3D Systems engaged in to grow its top line (see article below, about
that), that brings to mind what happened to IKON years ago. IKON went on an acquisition binge – buying
copier dealers, IT services companies, print-for-pay businesses, reprographics
businesses, etc., etc. - and, because of its acquisition binge and being unable
to swallow and adeptly merge everything it took on, IKON’s stock price
plummeted from a once lofty $50+ per share price to less than $10, and,
eventually, as we all know, Ricoh bought IKON, ending IKON’s misery. Lesson learned? Well, if you’re going to buy everything in
sight, anything that moves, be aware that you can get hurt, badly, if you don’t
have a good plan to merge, streamline, etc.
On October 29th, this article (see
article-title immediately below) appeared on the Motley Fool web-site:
3D Systems Corporation's CEO
Abruptly Quits; Next CEO Faces Ongoing Challenges - - - CEO Avi Reichental apparently couldn't wait to announce his
departure until next week, when the company reports its third-quarter earnings
In one of the paragraphs in the
above-mentioned article, this appears:
A long time coming
In hindsight, the
writing has been on the wall for Reichental to resign. Under his tenure, 3D
Systems adopted a hyperaggressive acquisition strategy to pursue market
opportunities. It resulted in the company making approximately 50 acquisitions
over the last four years, which, in turn, led to a host of execution issues
that weighed on its operations, performance, and stock price.
Link to complete article:
This was the next article that appeared on
Motley Fool just after 3D Systems issued its most recent quarterly earnings
report:
3D Systems Corporation Finishes 10%
Higher After Earnings - - - The 3D printing
company missed expectations but still managed to rally.
Link to complete article:
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