Sigma Labs Inc (OTCMKTS:SGLB) Corrects At The End Of The Week

The stock of Sigma Labs Inc (OTCMKTS:SGLB) went on to form a streak of six sessions in a row ending in the green which is quite impressive despite the fact that the daily gains weren’t that big. When the closing bell rang signaling the end of Friday’s trading however the stock was sitting 8% in the red at $0.1085. Although the ticker actually traded above Thursday’s close for most of the session it plunged downwards late in the trading day and failed to recover. The correction was not that severe though and for now the ticker is still keeping the majority of its price gains.

After the end of Friday’s trading SGLB issued a letter to the shareholders reminding them of some of the major events around the company. Indeed a lot of progress has been made and just a couple of weeks ago a launch event for the EOS M290 metal printer was held. The printer was enhanced with Sigma Labs’ PrintRite3D software and approximately 60 individuals attended the event.

SGLB’s may be trading on the OTC market but their financials are from the typical for a pennystock company. The annual report for 2014 showed that as of December 31 the company had:

• $2.9 million cash
• $3.1 million total current assets
• $354 thousand total current liabilities
• $548 thousand annual revenue
• $3.1 million annual net loss

The respectable cash position and the negligible liabilities are definitely a rare sight. Not everything is as positive though – the annual revenues declined significantly from the $1 million generated in 2013. At the same time the net loss is more than 4 times bigger.

At least the issuance of shares has been kept in check and for the first three months of 2015 less than 5 million shares saw the light of day. With a total of 623 million shares currently outstanding the company is getting rather close to its authorized amount of $750 million shares.

Although the company is moving forward and as listed in the shareholder letter they received their first contract from GE Aviation in early 2015 for approximately $500 thousand Sigma may find it rather hard to support its current market cap of over $67 million. If the excitement around the stock starts to subside the share price of the company may do the same. 

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