Last week, we placed our first stock trade in our real money account and chose ProtoLabs Inc. (PRLB) therefore. There are many factors that speak for this company and we have a long-term investment horizon. ProtoLabs is definitely a good candidate for the future with enormous potential for growth and we want to explain why.
Incidentally, this trade was sent in real time to our premium members in the premium community and can be viewed in our real money account.
The idea behind the ProtoLabs buy
Technical analysis for ProtoLabs
In the chart, you can clearly see a stable and nonvolatile uptrend. This is an important component for us when buying shares. We rely on stocks with stable trends and look for the trend continuation.
In addition, you will recognize that PRLB did not follow the volatile down moves in the overall market and built up relative strength. Relative strength means that a stock moves better than the overall market and may be among the leading stocks in the next overall market rally.
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ProtoLabs: A view from the fundamental side
Source: Yahoo Finance
Source: Yahoo Finance
ProtoLabs is a contract manufacturer specializing in the production of prototypes. The customer simply uploads the data of the prototype online via a special software and ProtoLabs starts the production of the product in the next minutes using 3D printing, injection molding or CNC processes.
The production of prototypes can thus be outsourced cost-effectively via ProtoLabs, thus creating a lucrative niche for the company. On request, delivery can even be made within one day. The customer uploads the data via the software and receives a cost estimation automatically.
The big advantage lies in the intelligent software. Customers receive a quote within minutes and can hold the finished product in their hands within one day. Other competitors need weeks until the products can be delivered to clients.
The two technologies are called Selective Laser Sintering (SLS) and Direct Metal Laser Sintering (DMLS). They allow a reduction in costs, as less material is wasted in the end.
More than 18,000 product developers are already using the software and platform from ProtoLabs and the numbers are growing at a double-digit rate. In addition, the potential for the future is enormous. Products can be submitted digitally in virtually every segment and can be created cost-efficiently in the shortest possible time. We see this as a great USP and want to participate in this future potential.
So that is why we have added the stock to our Tradimo $100,000 real money account. If you want to learn more about our trading and strategies, or just want to get our signals in real time, sign up for Premium.
Disclaimer: This article was written for educational purposes and does not constitute financial advice. Please learn to trade and invest yourself or seek independent professional advice. Your own trading is always at your own risk.