The two leading makers of three-dimensional printers sold off with gusto Monday. 3D Systems (DDD) led the rock slide, losing 14% in five times its average trade.
Peer Stratasys (SSYS) shed 10% on a big volume bump.
Stratasys stopped at its 50-day moving average and 3D Systems stopped well above its 50-day line. The level of selling in both stocks was serious. In 3D's case, shares fell on the highest volume since a breakout in April.
The main news in the sector came from 3D printing company ExOne, which set terms Monday for its $75 million initial public offering.
The Pennsylvania-based company, which provides printing machines and printed products to industrial customers, plans to sell 5 million shares priced between 14 and 16. The company plans to list on the Nasdaq under the symbol XONE.
Its printers reportedly offer fast, low-cost prototypes made from metal, glass or ceramic powder. But there is no clear read yet, analysts say, on how the new and much smaller entrant may affect the competitive field.
The news arrived just as 3D Systems shares had reached a bit of a precarious position. The stock gapped up 5% last week, breaking above an upper channel line ? a line drawn across the highs since May .
A break above this line is a sell signal, a sign the stock's run may be weakening. In the case of 3D Systems, the signal's importance is compounded by the fact the stock has already broken out of a third-stage base.
Also, shares rose 86% above their 200-day moving average last week. Advances of 70% to 100% above a stock's 200-day moving average may also warn of weakness in a stock's uptrend.
Analysts' consensus forecast for the company's earnings is an increase of 138% in Q4 on a 49% gain in sales. The company will report before the market opens Feb. 25.
Stratasys is also above a third-stage base but it has given up most gains from its November breakout. It had run up as much as 33% from its buy point, vs. a 60% advance for 3D Systems.
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