THIS 'STORY STOCK' CONTINUES TO FALL
Today, another case study in avoiding popular "story stocks"...
Over the past few years, 3-D printing has become one of the world's biggest tech stories.
3-D printing is the printing of solid objects... rather than conventional "on-paper" printing. The industry uses computers and special materials to "print" things like tools, guns, and toys.
As expected, with good stories come good stock rallies. One of the big names in this sector is printer-maker 3D Systems (DDD). The company soared from $10 a share in late 2011 to $97 in January 2014.
But there's an important lesson here: Market darlings like 3D Systems often become far too popular with the investing public... and grow far too expensive. When growth rates slow, these stocks get slammed.
As you can see from the chart below, that's exactly what has happened to DDD since its big jump. The stock has plummeted 90%-plus over the past two years to less than $9 per share...
Source: Daily Wealth