Sigma Labs, Inc. (OTCMKTS:SGLB) Vaults 20 Cents, Expects New Direction on Monday

Sigma Labs, Inc. (OTCMKTS:SGLB) will be starting the new week with an attempt to keep its head above the 20-cent levels once again. The ticker ended last week on a high note as two positive press releases landed, including the newest financial results. SGLB added nearly 12% on Friday to precisely 20 cents on dollar volumes of above $1.92 million.

SGLB made a new bid for a patent, this time trying to apply additive manufacturing in dentistry. It is unknown when this patent would materialize, yet the message was a reminder that the ticker is still active, and the company is still developing, instead of trying to disappear from the radar.

The 10-Q filing shows the company has a serious involvement and revenue streams through consultancy contracts, but it also expects to start generating revenues from direct sales. The company has a niche position of offering quality control on 3D printing products, treating the technology for its longer-term potential and not its novelty.

After a successful private placement and marking contract revenues, SGLB revealed:

• $1.2 million in cash

• $137 thousand in total liabilities

• $280 thousand in quarterly revenues

• $185 thousand in quarterly net loss

The company may still be a bit behind, but as of the end of September it attracted another institutional investor, Driehaus Capital Management, LLC. With this, total institutional ownership is of about 8.7 million shares, or 1.57% of shares outstanding.

A close contender in the past months, Image Ware Systems, Inc. (OTCMKTS:IWSY) was also fighting for attention. The ticker touched the $2 levels again, but retreated to $1.70, delaying another run.

Liquidmetal Technologies, Inc. (OTCBB:LQMT) also came in hot with a promising product and longer-term prospects, but the promotional hype caused investors’ fatigue and now the ticker drifts sideways, around 14 cents.

For SGLB, the concern is with the 430 million shares outstanding, too much for a company that aims for solidity, and investors’ forums foresee a reverse split. At the same time, Yahoo! Message boards reacted wildly to last week’s growth, stating that SGLB is nothing but hot air and would be worthless sooner rather than later. Now, it’s a race against time to achieve better earnings before the loyalty of some investors wears out.

SGLB stands at a peak and while there was optimism for Monday’s opening, it is possible that there is a correction. Adjust your time frame accordingly and do not rely too much on positive developments, unless you can also afford to lose your investment in whole or in part.