It can be much easier to doubt the long-term prospects for game-changing companies than to stick with them through thick and thin. To overcome the challenge of Mr. Market’s inevitable swoons, there are times when investors must simply do their homework, ignore the crowd, and trust that these rule-breaking companies will get back on track.
That long-haul approach may be exactly what investors should be doing with 3-D technology companies like 3D Systems, Stratasys and Arcam AB. Those companies have been among the stock market’s best performers since exiting the Great Recession, but they’ve fallen sharply this year.
Much of the worry over 3-D companies stems from fear that they’ve run too fast, too far. That’s understandable given that 3D Systems and Stratasys have soared 1,081% and 574%, respectively, since the end of 2009.
Given those returns, it’s not too surprising to see their share prices give some of their gains back this year. But investors may be better served considering the opportunity that lies ahead for these companies in serving sectors like healthcare, than focusing too much attention on this year’s swoon. … (Read more)