Arcam AB fka AMAVF

[mauser96]

Sector Contagion


http://www.forbes.com/sites/maggiemcgrath/2015/02/03/stratasys-tanking-more-than-30-on-slashed-guidance/?utm_source=yahoo.com&utm_medium=partner&utm_campaign=yahootix&partner=yahootix


Stratasys released preliminary fiscal 2014 earnings results and 2015 guidance after Monday’s closing bell that were significantly below the Wall Street consensus, and the numbers shook investors so much that Stratasys stock opened for Tuesday trading down 29% — and the free-fall only

http://www.benzinga.com/analyst-ratings/analyst-color/15/02/5206705/why-this-expert-thinks-theres-more-pain-ahead-for-3d-pri from there.
Gary Anderson, founder of 3DPrintingStocks.com, warned Benzinga that 3D printing stocks could remain under pressure throughout 2015.
"The industry is growing fast," said Anderson. "As far as I know, it's still growing between 20 and 30 percent compound annual growth rate. These companies are all expanding their revenue. They're all growing revenue."
Unfortunately, they're also trying to do a number of acquisitions.
"[M&As] dilute shares and it's costing them money in the short run and they're paying the price for it now,"

Of course none of this has anything to do with Arcam.

I suspect that lot of individual and institutions didn't know much about 3DP, didn't separate plastics from metals, lasers from eBM , so bought a basket of these stocks. Now they are selling the basket.

An irrational market at work.But markets can be irrational for a long time. Though I hate to see AMAVF the stock pummeled, Arcam the company is doing great. The crash is doing wonders for bringing the P/E down,the price is falling as the earnings are rising . I do think this sector linkage makes price gains unlikely anytime soon. I have no idea how low AMAVF will fall, but at some point it gets cheap enough to attract even value buyers.
I am reminded of AAPL around the time of the stock split, the stock price collapsed even though there was no change in the company outlook or business. It's all in perceptions. In the case of mutual funds they sense the perception, and don't want any 3DP stocks in their quarterly report due the end of this month. It makes the management look bad. This is a self perpetuating phenomena.