A Great Start Of The Week For Sigma Labs, Inc. (OTCMKTS:SGLB)

In early September Sigma Labs, Inc. (OTCMKTS:SGLB) enjoyed a rather impressive run up the chart that brought them above 13 cents per share but such prices proved to be too hard to support. In fact the sell-off has been so severe that last week SGLB dropped below the 10 cent mark and registered its new 52-week low of $0.079. On Friday it regained 12% of its price but the stock still closed at $0.093.

Yesterday the positive movement not only continued but it shifted into an even higher gear. Investors managed to exchange over 4 million shares, nearly 4 times the volume from Friday and as a result of the buying pressure SGLB jumped another 20% up and closed the session at $0.112. This time there was a solid reason for the excitement because early in the morning the company issued a new PR article.

In it they announced that commercial activities for the production of 3D printed parts have been launched. The company has begun receiving requests for quotes for the production of precision metal parts. This represents a significant event for SGLB who have been in a transition from services to products. Before you get too excited though there are some things that need to be taken into consideration. The Model 290 3D metal printer is expected to be delivered to the company by the end of the month while it will take another month to complete the installation and integration of the machine with SGLB’s PrintRite3D quality assurance software.

Nevertheless, it seems that Sigma Labs are moving along in the right direction and if they follow up yesterday’s news with another PR talking about possible contracts or sources of revenues it could propel them even higher up the chart.
The fundamentals of the company also look solid, well, for a pennystock that is. At the end of June they reported the following:

  • $4.3 million cash
  • $4.4 million total current assets
  • $88 thousand total current liabilities
  • $114 thousand revenues
  • $1.7 million net loss

It should be noted that almost all of the net loss at the end of the quarter, or $1.28 million to be precise, comes as a result of an extension of the expiration date of an outstanding warrant by nine months. The current resources available to the company are expected to keep them in business at least until the end of next year. After that though SGLB might be forced to seek external sources of finances and this could lead to further dilution of the common stock.

Since the start of the year nearly 60 million new shares have seen the light of day. As of August 12 the number of outstanding shares had reached 618 million out of the 750 million authorized.

Sigma Labs have a number of exciting partnerships and their plans for commercialization are coming along but the stock is still a volatile choice. Careful research is needed before any trades are attempted. 

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