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Hmm, I never got that notification. Also, it looks like the March presentation has been removed from the site. I was thinking that it looked like a rough draft...interesting
You're pricing it based on its intrinsic value.
Simply put, stock price - exercise price = intrinsic value...which can't be less than $0.00.
So where is this value coming from?
The time value of the warrant, which is to say the premium on the warrant for the length of the contract before it expires. The longer the time til expiration, the higher the premium because it's given more time to be in-the-money. As time goes on, this premium will decay (like you mentioned). Also, the higher the volatility, the higher the premium.
However, the further the warrant is out of the money, the lesser the premium...
The point is, these values aren't stagnant, they won't trade at their exact intrinsic value and should have some other value added.
Everything I've read indicates that they would.
From the IRS
Absolutely, I was just considering the intrinsic value of the warrants to clear kanya's confusion. Generally speaking, the longer time til expiration, the larger the time to maturity premium...which helps explain why the current warrant price exceeds its intrinsic value (it's worthless right now). Also, the more volatile a stock is, the higher the premium.
*I am assuming that warrants will trade like options
Haha, yes I do Kanya...I own shares & warrants. Even with the current prices, buying and selling the warrants could be more profitable than exercising them into shares or purchasing the shares outright.
For example, if you buy warrants for $1.00 while the stock price is $3.00, you need the price per share to exceed the warrant price plus the exercise price ($4.00 + $1.00 = $5.00). However, once it breaks this threshold, you'll quickly see high % gains on your warrants. Every cent over $5.00/share should equate to 1% gains on your warrants. So at $6.00/share, the warrants should be trading at $2.00. At this point, both options have a 100% gain. After $6.00, the warrants start to exceed the gains of buying the shares outright.
Someone please correct me if my thinking is faulty.
I was thinking about this as well.
As long as you believe the share price will be at least $4.00 + warrant price before expiration (which I believe is in 5 years?), trading the warrants look the better investment.
What are you even saying here? 10-Q is filed for the first three quarters of the year.
I'm starting to think that there will be an announcement alongside the report to offset the 10k results; hence the delay.
Seems to me that some of our DD intensive posters should be writing these articles.
I'd love to see an official write up by Jackle, silversmith, GR1D, TedJ, etc.
I wonder if that's why they have a new IR firm...
Thanks Jackle,
Very important distinctions made here.
Have you read any Wohler's Reports? I may have access to 2016's soon.
Thank you for the clarification.
Our guardian angel
Hey Silver,
I asked Witty for some clarification on this language used between the two PR's, to which he responded,
Hey Silver,
Wouldn't the A/R for the contract be offset by the unearned revenue until the units are delivered? Or are you saying the units are sold as a lot to the OEM, therefore already earned, and the income recognized, would carry over into stockholder's equity? I'd still argue that the expenses would prevent us from meeting that hurdle.
Thanks.
https://listingcenter.nasdaq.com/assets/initialguide.pdf
They're looking to uplist to NASDAQ's Capital Market (starts on page 9)
Something is up. Recent trend would've been a pop, and retracement with low bids.
I said pretty much guaranteed.
Sigma Labs has filed for both a shelf offering (S-3) and secondary offering (S-1). Both of these are dilutive in nature. If share price doesn't appreciate to the minimum pps requirements to uplist to Nasdaq and/or if they need cash to payback their loan, a private offering may be necessary.
If the share price does appreciate to the uplisting requirements, but management wants/needs to ramp up production faster than their current cash flows allow, they will utilize one of the public offerings.
Considering the company has negative margins (but starting to improve) and demand for their product is increasing, they will need large sums of cash to make the appropriate changes.
Exactly.
Dilution is pretty much guaranteed. If contracts are being signed, I condone it. There will be a need to ramp up.
Agreed and I'm OK with it now.
I've been tolerant this past 2 years but I am excited again. If I can load up around $1/share, I'll be stoked.
Your assumption was correct. I confirmed with Mr. Witty that the offering has not taken place.
Thank you.
And for those concerned about the expense...it looks like the new directors are going to be issued shares for their services.
Great memory.
It's an extremely beneficial move towards uplisting and continued operations.
Recommended DD regarding Phase iii DARPA contract by GetRich1Day in post #44361.
Hey Wick,
I can appreciate the speculation, but I do not understand the rationale. Can you please explain (or anyone that can follow this line of reasoning)?
If GE intends on using their newly owned 3D printers or parts they've printed, wouldn't they prefer to have an advantage of dealing with a small business (who would significantly rely on them for revenue) for their 3rd party validation than owning the IP that would nullify the most important feature of the software that is 3rd party QA?
I can't see the point of them owning the IP of a company whose goal is to provide an independent measure on part qualification.
That would be like any publicly owned company saying, "hey accounting firm, you're the best accounting firm to independently measure our accounting practices. In fact, you're so good at it, we are going to buy your firm". But wait...they wouldn't be able to provide that specific purpose anymore. Which industry do you think has stricter compliance, financial reporting or aerospace?
Can you enlighten me here?
Look at that spread. Volume is gonna dry up again.
Okay, now they're trolling. "Sigma's most successful show yet" ... empty booth. Gotta find humor here.