It may be time to cash in 3-D printing stocks, whose amazing commercial and consumer applications have captured the imagination of retail investors, after Stratasys warned on profits for a second time.
"Halftime Report" trader Jon Najarian said he will likely dump Stratasys from his portfolio.
"This is not my first rodeo," said Najarian. "Will shorten up my swing and won't trade as big" for my next stock.
The more-than-30 percent drop in Stratasys shares on Tuesday pushed Najarian into last in the Halftime Portfolio Challenge. The decline comes at a time just as energy stocks, reflected by Najarian's holdings of Western Refining and Transocean, are starting to perform as oil rebounds, going positive for the year Tuesday.
Najarian did not select a replacement for Stratasys yet, but may be waiting to see how far the energy stocks can take him in this rebound. Other 3-D printing stocks took it on the chin as well with 3D systems losing more than 9 percent on Tuesday and ExOne down more than 5 percent.
The trader hasn't given up on the long-term story for 3-D printing, but believes it may take longer than 12 months, the duration of the portfolio challenge which began in January.
"The market can exhaust your capital before you can be right. (I) don't want to invest in hope."
Stratasys said it may take a charge of up to $110 million related to the MakerBot home 3-D printers business it purchased, as consumer sales trail industrial sales badly.