September 18, 2013:
Let’s update our 3D printing company ExOne (XONE) stock trade that was filled on September 12. On Monday September 16th the stock had another big decline and closed at the lows for the day on high volume. This is not a good sign. This shows that the big institutions are selling en masse. The 100 day moving average (the blue line in the chart) did not hold.
(Click to enlarge)
Part of the reason is that Stratasys (SSYS), another 3D printing company, announced a stock offering on Friday. XONE had just announced one a week or so ago. Fast growing companies take advantage of high stock prices to offer stock – they are getting maximum dollars for their stock offering. Investors don’t like stock offerings as their holding are getting diluted with more shares.
Yesterday XONE closed slightly lower. Volume dropped off a bit, but was still more than its average daily volume of 738,000 over the last 3 months.
I am placing my stop-loss order at 48.99, right below yesterday’s low of 49.00. The stop is more than my usual 7%-8% range below my purchase price, but the stock’s volatility would have immediately kicked me out with a loss with no chance of the trade working out. If the stock shows more upside in the next couple of days, I will move my stop-loss up to reduce the amount at risk.
ExOne closed today at 51.26, up 1.83 or 3.7%. Volume was almost double the 3 month average volume, which shows the big players have stepped back in.
At this point, there is nothing to do buy sit back and watch how the stock does in the next week or so.
3D printing, also called additive manufacturing, is an amazing technology where users can literally print solid three dimensional objects from their computer. Home versions allow you to print out of plastics, but more expensive commercial units print in metals, ceramics, glass, and other materials.
To learn more about ExOne and 3D printing, please visit their website at www.exone.com
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