Newsletter

Greetings Trader!

As the name implies, 3D Pioneer Systems Inc. (DPSM) is into 3-D printing, which eggheads and CNN agree is the next industrial revolution.

3-D is ramping up fast now and based on the recent chart DPSM is finally ready to build a little momentum of its own down here at $0.10:  

For a “deep oversold” stock, DPSM sure seems to have punched above its weight class yesterday -- every penny counts down at this level!

Check out how the RSI remains well below the 30-point bar that signals overdone selling, not to mention the MACD now pushing higher.

And that volume spike was insane! Normally DPSM moves a couple 100,000 shares, maybe a million. This was a GUSHER!

Here’s a quick guide to the DPSM story before we try to figure out whether that big move is only the first hint of bigger fun ahead:

• 3-D printing means building guns or jewelry or hearing aids or human bone in a special box programmed like an office printer. No factory, no shipping, no fuss -- just a revolution in how we make stuff! (Read more)

• DPSM obviously wants a piece of this $16 BILLION boom but as “only” a $7 million start-up it’s sensibly not competing head to head with giants like 3D Systems, Stratasys and Autodesk. Why risk getting gobbled? (Read more)

• So DPSM is chasing crumbs of business around the 3-D printers themselves. First up is a goo that people can squirt into the box to prevent warping, which is apparently a huge problem. (VIDEO)

• Meanwhile DPSM will run their 3-D printers for kids who can’t afford their own machine. They say “Beat Any 3-D Print” was booking orders within HOURS going live, which tells me there’s a little pent-up demand here!

Bottom Line: Speaking of the 3-D giants, it’s probably worth noting that Stratasys and 3D Systems have been white-hot on Wall Street lately.

DPSM lagged their 2-digit trajectory until yesterday but now seems to have all the makings of a comeback kid story on its side.

But while the sudden burst makes me think DPSM is ready to blast out of its recent $0.08-$0.10 comfort zone, I can’t find the smoking trigger!

There wasn’t any fresh news on the DPSM wire. No wild action elsewhere in the 3-D printing world that might encourage copycat buying here.

Has a “strategic” investor started nibbling? It’s only speculation, but how else do you explain that chart suddenly lifting up off its base?

Sincerely,

Michael Reef