Todor Pichurov

Sigma Labs, Inc. (OTCBB:SGLB) Shuffles Up

by Todor Pichurov September 5, 2013
5SGLB_chart.pngThis summer has been anything but dull for shareholders of Sigma Labs, Inc. (OTCBB:SGBL, SGBL message board). Heated mid-summer action triggered in part by expert coverage on a specialized website sent Sigma's stock to a 52-week high of over $0.13 per share, but the reversal from the peak values was immediate and the price went on a week-long red spree that shaved about 60% of its value.

Yesterday the stock had its first double-digit green close in about two weeks, arriving at $0.078 or 11% up by the bell. As with a few other penny stocks that climbed really fast really high this summer, SGLB's hard drop was not caused by promoters and organized pump campaigns.

It's much more likely that shareholders decided to cash out at the new lucrative highs and the selling pressed the stock down. The more jumpy among shareholders may have got additional incentive to sell by the July private stock placement Sigma did to raise $1.2 million in funds. The stock issued in the placement consisted of 120 million shares with a price of $0.01 per share - significant dilution with shares offered at a sizable discount from the then-current prices.

A brief look at the company's latest financial report for Q2 reveals the following:

  • $463 thousand in cash
  • $470 thousand in current liabilities
  • $307 thousand in Q2 revenues
  • $122 thousand in Q2 net loss

The cash position of SGLB has improved more than twice within six months and net loss is quite modest compared to many other OTC enterprises. Expenses have been reined in YoY and remained comparable to those of the previous quarter. Revenues are flowing in but they are so far derived from 'Services' as per the report and not from marketable 3D printing products. The IPQA or "In-Process Quality Assurance" system SGLB is working on is expected to be commercially exploitable in fiscal 2014, as per the company's latest 10-Q.

For a stock that has not been targeted by organized pumpers and that is actually generating revenues and actively working on its big break product, SGBL is in a decent position despite the unfortunate timing of the July stock placement. Whether it will prove to be the additional push the company needs to make it remains to be seen.

ABMS_chart.pngOther pennies that generated large dollar volumes on Wednesday include InVivo Therapeutics Holding Corp. (OTCBB:NVIV) who closed 11% up. Amarantus Bioscience Holdings, Inc. (OTCBB:AMBS) dropped by 28% after a few red-hot days and wiped out all gains made over the previous two sessions.

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