Tuesday, May 24, 2011

Stratasys Inc. (NASDAQ: SSYS) Q3 2011 Price Target

Recent price: 33.83$
P/E Ratio: 48.77
3 Months Target Price: 45$

Company Description
Stratasys, Inc. is a manufacturer of three-dimensional (3D) printers and rapid prototyping (RP) systems for the office-based RP and direct digital manufacturing (DDM) markets. The Company develops, manufactures and sells a product line of 3D printers and DDM systems (and related consumable materials) that create physical models from computer-aided design (CAD) designs. It also offer rapid prototyping and production part manufacturing services through its centers located in North America, Europe and Australia.

Confidence Margins
Strong resistance $55.66 (+55%)
Light resistance $45.32 (+34%)
Light support $31.79 (-6%)
Strong support $30.00 (-11%)

Stratasys Inc is a high technology company with a lot of future upside potential. This places the company in a position with a lot of potential for long term investors.

Entry strategy
For the cautious investor:
Buy the stock for 8.00$ or less.

For the risk-taking trader:
The September 2011 35$ out-of-the-money call option contract seems to be the right position to take, they can be acquired for about 3.70$ per contract.

Exit Strategy
For the cautious investor:
Sell when the stock reaches 45$, or keep it until 55$ if you are more bullish in your own analysis.

For the risk-taking trader:
The contracts should be kept until the underlying reaches around 45$. This should provide a satisfactory return if the underlying reaches the target price as the contracts will get in the money.

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