Sigma Labs, Inc. (OTCMKTS:SGLB) Accelerates Growth
After a slow month, Sigma Labs, Inc. (OTCMKTS:SGLB) is finally moving, on positive news and a small amount of momentum that easily swung the ticker to its previous height. SGLB stopped at 12 cents after growing by more than 12% on Thursday, and dollar volumes grew a third day in a row to $1.3 million.
The only problem is, SGLB is still volatile, and attracting a lot of short interest. And this may mean another correction at any time, combined with the usual periodic profit-taking.
For SGLB, the news about the grant is becoming stale very fast. While the company has longer-term investors, its climb may be slowed down at some point. The current prices are very near yearly peaks, and without a promotion it would be hard to go far into uncharted territory. While investors’ opinions vary, the consensus is that SGLB could see shakedowns in the short term, but could visit much higher prices, based on the nature of its business and the quality of the patents.
But if we look at SGLB in the longer term, the stock has hardly done anything in the past three years- only fluctuating within the range of a few cents, even at times of promotion. So a bigger run is not out of the question. SGLB has something of a red flag, too, the private placement of 120 million shares over time, at par value. This would mean SGLB is pressured by the threat of insider selling. This is a significant amount to the company’s 555 million shares outstanding.
When it comes to high technologies, stock markets are receiving tech companies better, for what is considered a new boom, though probably more sustainable than the dot-com bubble in 2000. With more ubiquitous technologies and handheld devices, companies show up with a better market logic.
Liquidmetal Technologies, Inc. (OTCBB:LQMT), another promising company trying to cater to mobile devices, is again stagnant at 15 cents on low volumes, awaiting direction.
SGLB may hold surprises in either direction, and volumes are not stable day-to day. If you still like the price range, it is best to do your own due diligence and choose the right time frame for the investment.