Evening all
A few thoughts on today's posts
I don't necessarily agree that there will be a huge contract order with GE and that's the be all and end all of Sigma. I think that the JTDA will mean that there will be a heavy concession in any contract that is made. However, two very important points. The first is that this validation within GE (who are able to certify things to an FAA standard through their ODA status) would then open the floodgates to a much wider manufacturing base. Yes GE will make a lot of nozzles and blades, and Sigma would get a cut of that but a verified PR3D set loose in the rest of the emerging AM market would potentially dwarf that over time. What we reduce as a result of jointly developing we would make hand over fist by their verification (and potentially their help in pushing down the supply chain). The second important point which i have bought up before and i feel is relevant to a 'simple' buy out situation is that Sigma are developing different parts of their PR3D with different companies. The DEFORM work is being done with Honeywell. There is, therefore, a splitting of trade secrets that is essential to protecting Sigma from just a simple buy out by GE. Personally i think this is a very important point. An INSPECT and DEFORM validated by GE and HONEYWELL respectively opens the door massively to a larger audience. (Remember Honeywell/Darpa is very much a defense related play). Vivek in the Q+A did say the following, "any good IP strategy has at least two fundamental components - patents and trade secrets. Similarly, we employ both".
In my eyes therefore I don't think it's as simple as GE know PR3D and instead of buying $50m of software will just buy the company for $60m. I think Sigma has protected themselves better than this. There is also the outside bet that Los Alamos has more up it's sleeve and Mark and Vivek are also aware of even bigger value for Sigma Labs. After all they have a signed MOU for more patents that can be commercialised with Los Alamos who spent 20 years specializing in AM and material science.
Curious to know if anyone agrees with what i have put here. I think it adds significantly to Sigma's long term value
