Sigma Labs Inc (SASI)

[crook717]

Concern of mine that hopefully some here with more knowledge can answer.

Say GE has 100 printers they plan to install in their manufacturing facilities (I believe that was the number throw around before) We estimate that PR3D will be about $500K per copy. That's $50M in revenue, for a company with less than 10 employees with a current market cap of about 70-75M. Something doesn't add up here.

I don't see how GE will pay $500K per software we theorize on, or why wouldn't they just buy the company. No way do I see GE paying $50M for software + royalties when the company is currently valued at 75M. If they are 100% sure about PR3D, they will just buy the company before agreeing to a contract.

If they are not 100% sure about PR3D, then most likely scenario that GE will do is equip say 5 or 10 out of 100 printers, and see how it goes. If it goes as expected, and they like what they see, they might still go after Sigma and buy it out before they agree to a bigger contract. Of course at this point they might be a higher premium than before as news would have already reacted on the initial 5/10 contract purchase.

Or...PR3D is not what it seems, new technologies are emerging often in AM and perhaps Sigmas patents could be worthless if a newer/better technology comes along.

I'm just theorizing here...some help would be helpful.