Check out short interest in the 3D printers — VJET, DDD, and SSYS (February 11, 2015)
I want to look at Voxeljet ( NYSE:VJET ), actually a couple of the other 3D printers too; lets talk short interest. First of all some of the people in the forum have been talking about, it hasn’t been a hot topic of conversation but its been pretty regular, talking about the 3D printers and the fact that they may be finding a bottom, finding a bid, and this and that.
I’ve been tracking them and so have other members, it looks to me like that’s what’s happening here. Not screaming buys yet, though of all of them I would take Voxeljet ( NYSE:VJET ) now. You can see this article on Yahoo Finance if you do a search for ” Voxeljet”; it’s an interesting article about short selling, short interest in the 3D printing stocks.
Voxeljet ( NYSE:VJET ) has a days to cover now of about seven days or so, something like that. It’s a fairly decent short interest though it has been lower; it’s been dropping. So what’s that telling you? It’s telling you, well duh, shorts are covering, but when you cover what do you do? You buy. So some of this buying interest is from shorts who are saying, “You know what? I think it’s time to close this position out.”
So you’re getting some buying pressure from the shorts and as the stock moves higher you’re going to get more shorts that say, “You know what? I’m here to make money not to be right.” And so they’ll start covering. So I’m looking at Voxeljet ( NYSE:VJET ) and I think it moves higher.
But then you look at the other printers, 3D Systems ( NYSE:DDD ) could also work; 34.5 percent of the company’s float is short. Days to cover, which is how many days would it take if the only people buying were the shorts, given the volume? Take twelve days, so short interest is pretty high on this, which means if the 3D printers start to move higher you’re going to see a little bonfire under here as this stock goes higher.
Stratasys ( NASDAQ:SSYS ), you know what happened to this; short interest actually rose in January, in the last two weeks of January, well guess who was covering? All the shorts were buying. So this is a stock that’s really still actually moving up.
The bottom line is this; when you see one particular stock in an industry, make sure you look at the other stocks too. Because you may find some useful information that helps you, number one; find the right stock in the industry because maybe the one you’re looking at isn’t the right stock. And number two; give you a better idea of exactly what the dynamics are behind that stock.