Sigma Labs, Inc. (OTCMKTS:SGLB) Pulls Back
After a run up the charts that increased its share price almost fivefold from its early August levels, Sigma Labs, Inc. (OTCMKTS:SGLB) seem to have hit a wall at $0.20 per share. Yesterday the ticker dropped 14% to a close of $0.15 per share.
Sigma climbed climbed on a combination of factors including publicity and exposure of the sector they work in through various articles. Sigma are developing a proprietary 3D printing technology that they have not yet commercialized but are hoping to do this over fiscal 2014. The company is still generating revenues from services and not from their product.
Despite this, the name of Sigma Labs now appears next to the names of supergiants such as General Electric and the company has multiple memorandums of understanding. Those are obviously not contracts yet but the team is reportedly working in that direction. Traders appear to have a lot of faith in the company and its management as even after the drop the majority of posters on discussion boards remained firm in their belief.
Of course, the contrary opinion is also voiced by a few people, including the fact that even though the company is conducting talks with big companies, they still have some way to go until they can sign with one. Additionally, the rush over October 2013 that doubled the share price was somewhat predictably difficult to sustain and could not have been generated solely from long investors, as there are always people who would ride a climb without a long-term interest in a stock, bag their profit and move on.
Even though the stock has lost a fifth of its share price over the last three sessions, the volatility was expected to a degree and it remains to be seen at what point SGLB will consolidate.
Other significant percentile movers in yesterday’s session on the OTC include Growlife, Inc. (OTCBB:PHOT) who surged over 17% to reach a close of $0.08, shifting nearly 32 million shares. La Jolla Pharmaceutical Company (OTCBB:LJPC) returned near its pre-surge price levels, closing almost 13% red on even heavier share volume.
