Sigma Labs, Inc. (OTCMKTS:SGLB) Retreats

After charting new highs during its latest green run, yesterday Sigma Labs, Inc. (OTCMKTS:SGLB) closed 8% down on 8.8 million shares traded. The company is coming down from a new 52-week high it hit in the short post-holiday session on Friday.

The drop looks to be a regular undulation of the market. SGLB is still moving along on its own merits and the confidence of investors, without any stock pumps targeting it. The closest thing to a pump for the ticker that is now gaining more and more exposure through discussion hubs is one blog dedicated to SGLB and additive manufacturing in general. The page’s disclaimer states that the site is maintained by a SGLB shareholder but he is simply a supporter of the stock and is not being paid to publish articles on it.

The articles posted on the blog are still hugely optimistic and have a very obvious positive slant, even though the author encourages readers to do their own due diligence. This is something we vouch for too but we also advise a more level-headed outlook on the stock.

Sigma’s big bet in the additive printing space is their in-place quality assurance (IPQA) system – PrintRite3D. The intelligent quality control should significantly decrease production times and lower costs. The catch is, Sigma have not yet been able to commercialize their products. The company is generating revenues from consulting services and not product sales, with expectations to commercialize its products in 2014. This deadline has already been pushed back in time before but hopefully SGLB will manage to meet it this time around.

The pullback is not the end of the world for the ticker as it had charted a similar pattern before. It’s possible that SGLB may slip even lower and then recover during another green streak, should it swing into a repeat of recent chart moves.

Another 3D printing stock – Makism 3D Corp. (OTCBB:MDDD), commanded an even heavier volume in yesterday’s session but it was assisted by a stock pump. MDDD closed only 2% up but generated a share volume of 5.4 million.