This is an odd little story.
From Investor's Business Daily:
Shares of 3D Systems (DDD) were down more than 8% in afternoon trading Monday, apparently in reaction to a second report that questions its accounting.I must confess I don't know "Gray Wolf Research".
A negative article published Monday in the Seeking Alpha financial website referred to an Oct. 23 article by Gray Wolf Research, which also ran in Seeking Alpha, asserting that 3D Systems' "extraordinary growth rate may not be all that extraordinary."
"Wolf claims that management overstates its numbers by employing dodgy accounting vis-a-vis its numerous acquisitions," according to Monday's Seeking Alpha report by Douglas W. House, who notes he has no position in the stock and has no plans to initiate any position for at least 72 hours.
3D's shares fell 2% on the day that earlier article posted in Seeking Alpha. The stock hit an all-time high of 46.92 on Friday, at that point up 226% for the year. Shares traded near 42.30 Monday afternoon....MORE
Their Seeking Alpha page says:
Gray Wolf Research is the pseudonym of a research team focusing on publicly traded equities. As of the publication date of our articles, we may have long or short equity positions in the companies covered. We do not use options to establish positions prior to a report’s publication. We do not discuss unpublished reports, or provide any advanced warning of future reports to others. Due to the danger of retaliation from company management, our reports are written under a pseudonym.
We were looking for a pause in the action, these guys are looking for a 20% drop just to get to break-even.