Re: RP Stocks

From: by way of Yakov Horenstein (
Date: Thu Jul 03 1997 - 18:05:12 EEST

Yakov Horenstein wrote:
> Golly, Stratasys stocks have recently taken a tumble. A week or so ago they
> were at the $25 mark, today they are trading at $16 1/4. Anyone know why?
> DTM has gone from around $8 1/4 to $4 5/8
> 3D Systems was around the $7 mark, is trading now at over $9, probably as a
> result of the EOS acquisition

On Monday, Stratsys release information saying they would not meet
current wall street estimate for revenue (and I Assume earnings). They
attribute this to manufacturing capacity constraints for their FDM-8000
(I think), an inability to close a few major sales, and currency
factors. Revenues were expected at 8.7 mil. I would guess they would
come in around 7.5 mil.

Peter H. Gien wrote:
>The most important criteria is value. The price/earnings
>ratio for Stratasys was over 40. This is very high compared to IBM and >AT&T,
>they are both less than 20.

Comparing the Price/Earnings ratio of two comanies as different as ATT
and Stratasys is relatively meaningless. It would be more meaningful to
compare the P/E of Stratasys and 3d Sys (where Stratasys also apears to
be quite high) However had Stratasys been able to meet wall streets
estimates, they may have earned $1 per share giving them a P/E of 25
(before the price dropped). Not bad for a company growing at 50%.

This is the second time in less that a year that Stratasys has been
unable to push through enough sales to meet the revenue picture that
they had given to wall street. Does this surprise anyone ?

Peter Sullivan


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