So, I guess the hype certainly died on 3D Systems ($DDD), I guess I couldn’t understand why anyone was actually buying the stock following a brief short cover rally that quite literally doubled the share price. In an environment of weakening European fundamentals, which roughly translates to 30% currency exposure to Europe, and a faltering line-up of products in comparison to prototypes from Carbon3D (continuous liquid interface production) and HP’s Fusion Jet 3D Printer, I believe the stock price will continue to decline. Furthermore, the competitive threats don’t just end at hardware, but with resins being sold anywhere from 40% to 60% cheaper from Chinese vendors, I believe there’s structural deterioration to the current business model that cannot be simply addressed via M&A activity, or restructuring of costs. In fact, the long-term value of a business that cannot maintain a competitive edge within the technology space is zero dollars.Though, I have not updated my financial models for 3D Systems, I believe weak/bearish sentiment certainly justifies my stance.Here’s what was mentioned by Bank of America Merrill Lynch in a report released on June 24th 2016:Downside risks to our PO are Hewlett Packard's entrance to the market, commoditization of higher margin materials business, lack of follow though of consumables after the initial systems sales leading to lower profitability, mix shift in printers to lower priced systems, integration risk of acquired companies, sourcing of critical components like print heads and choppy execution that could significantly compress the trading multiples. While BofAML mentions that they have a $25 price target, I can’t shake the feeling that 3D System’s worst case scenario is materializing quicker than originally anticipated. Furthermore, the investor base doesn’t have a lot of conviction in the company, which makes it a compelling contrarian investment idea. Though, don’t get me wrong, the stock is quite volatile and there’s always the risk of a buyout that could lead to a short squeeze, or a trader fueled rally that could really damage a short position’s P&L. But, notwithstanding those potential issues, I believe another compelling re-entry to a short positon for the duration of the market correction makes sense given the low-likelihood of a compelling fundamental recovery, as the next wave of selling should lead the stock to new all-time lows given the weakness in broad macro and core fundamentals. Investors/traders should look to make a short entry below the 200-Day moving average. But, volatility is quite strong, so anticipate some difficulty with looking in a sustained position if you’ve put a tight lid on your stop position.