Big Bounce for Sigma Labs, Inc. (OTCMKTS:SGLB)
After a somewhat disconcerting slide in December that pressed the share price of Sigma Labs, Inc. (OTCMKTS:SGLB) down 30%, yesterday the ticker bounced nicely from its 50-day moving average and stopped 18% up at $0.21.
The price seems unable to settle in place despite the relative calm on the press announcement front and the lack of very recent filings. Sigma published its latest quarterly in mid-November and that sent the price up but it’s been a roller coaster ride since then. There’s obviously a very avid interest in the ticker as daily volume remained strong throughout the last three months.
Overly enthusiastic supporters of the company are hoping that by next year Sigma’s PrintRite in-process quality assurance system will somehow become the industry’s standard in quality control and will be employed by every aerospace company in the world. Hyperbole aside, Sigma does have a fair bet for success in the field as the additive manufacturing space is currently largely unregulated and lacks official standardization.
Commercialization of PrintRite is planned for fiscal 2014 but that does not automatically equal immediate revenue streams from product sales. Some traders on discussion boards are clutching at straws, trying to interpret every sentence coming from GE representatives as a confirmation that they will be all over Sigma’s technology. While this may happen, it’s not set in stone and traders should weigh the risks as they stand currently. All things considered, SGLB does seem to have a strong following and the last bounce has shown that there are enough people who have faith in the company’s long-term success.
Makism 3D Corp, (OTCBB:MDDD) – another additive manufacturing ticker that, unlike SGLB, is targeted by an expensive stock promotion involving both email touts and a paper mailer, dropped nearly 30% yesterday, stopping at $0.90 by the bell. With the second price slide underway and a ‘Buywe beware’ stamp on OTCMarkets, MDDD may not get another shot at recovery before the pump drags it down.
