Sigma Labs, Inc. (OTCMKTS:SGLB) Comes Back to Three-year Peak
Sigma Labs, Inc. (OTCMKTS:SGLB) is playing a game of survival, as a company that has enough worth in the longer term, yet on the OTC markets has to face skeptics who believe its achievements are little more than temporary hype. Still, on Monday SGLB kept up the positive momentum, adding more than 17% to stand at 23 cents, on dollar volumes above $3.8 million. This is a three-year peak for SGLB, on near-record buying volumes, possibly ushering another extremely active week.
The latest update from SGLB is an extension of the Honeywell Aerospace contract to produce details through additive manufacturing. SGLB has also secured several consultancy contracts promising fixed revenues, so while not stellar, the company has a future. SGLB still improves its technology, working in prototypes.
On the negative side, SGLB continues only because it raised additional cash through a private placement of shares. On the plus side, the new earnings season and the prospects for 2014 may be proof that the company is serious, and may even wait out a buyout.
And a new article from Seeking Alpha may give a further boost to the stock, as it mentions that Hewlett Packard would be making a foray into the 3D printing world, possibly through acquisitions. This should happen as early as the first half of next year. SGLB has not been promoted since the summer months, and the main reason behind the recent rise are a series of development leading to contracts and grants.
Despite the skepticism, 30 cents is easily seen as a target for SGLB until the end of the week.
The biggest strength of SGLB is the PrintRite 3D technology which aims to ensure quality before a detail is produced through additive manufacturing. This technology has the benefit of being licensed to other 3D printers, where novelty needs to give way to reliability and quality, and where crucial details for specialized uses will need the appropriate supervision.
Speaking of promising industries, Car Charging Croup, Inc. (OTCMKTS:CCGI) made a wild run before correcting sharply back to $1.62, from peaks around $1.80.
And Liquidmetal Technologies, Inc. (OTCBB:LQMT) still has little interest to offer, being stuck around 14 cents until it proves it could sell more than its prototypes.
SGLB may offer returns with the right time frame, but the extremely high levels may become shaky, wiping out a large part of the current value. The company is diluted, and insiders hold enough shares to depress the price, if the time is right for selling. Even NASDAQ-listed 3D printers have failed or traded with great price swings, so avoid investing unaffordable sums in case SGLB loses investors’ loyalty.