Following on the heels of the Protolabs report on November 13, 2023, “Protolabs is sculpting the supply chain,” is a brief update on Materialise, which rounds out the top two opportunities in the 3D printing industry. In the June 2, 2023 report “3D printing is a razor and blade opportunity,” I described Materialise as follows:
In my experience, having followed the group throughout the years, Materialise and Protolabs have consistently stood out as the top two opportunities in the industry… I view Materialise as the top opportunity in the group given its superior business model, margin structure, and its peer-leading growth outlook.
Technicals: Plumb Line
A plumb bob is a simple device, a weight suspended from a string, which is used to establish vertical direction known as a plumb line. The mental image of a plumb bob at rest (thus establishing vertical direction) is apt for describing the price action of Materialise since the June 2, 2023 report.
Using the plumb bob analogy, notice on the following 6-month daily chart that Materialise’s share price came to a complete stop between October 16 and October 25, near $5 per share.
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