Sigma Labs Inc (SASI)

[GetRich1day]

Why I still invest in SGLB. I am a long term investor and I'm still in. I am posting this for the long investors. I post here and there but I read this board everyday. SGLB is a company that I believe in despite the pps not being where I'd love for it to be. I am down in paper on my investment as I brought many shares in the high teens and low 20's. I have continued to buy shares as the pps has gone down as I viewed the declining pps as a buying opportunity. I won't lie and say that the declining pps since the end of 2013 was not bothersome as was the 100 odd million dilution. SGLB needed the injection of cash at the time. I sat back and observed what SGLB did with the funds acquired via the dilution since the beginning of last year. Here's my observation. They 1) purchased a EOS printer. 2) Hired additional personnel 3) Joined AMC 4) Formed Materialize and Adurant partnership and 5) gave Mark a bonus. I'm sure I left out a couple things.
OK so let's address how the funds were utilized.
1) EOS printer
They purchased the printer that their main customer GE Aviation uses and can use it to showcase their PrintRite 3D suite to many more potential customers such as the AMC crew when they host it in the fall this year. The EOS Printer will give them the ability to generate income outside of PrintRite 3D suite as they can build AM prototypes for many. This AM prototype business is a growing one as I discussed many posts ago. I consider this a great use of the funds.
"The global market for 3D printers and services is expected to grow from $2.5 billion in 2013 to $16.2 billion in 2018, which represents a compound annual growth rate of 45.7%. "
http://www.computerworld.com/article/2824142/two-thirds-of-industrial-manufacturers-use-3d-printing.html


2) Hired additional personnel
They hired an applications engineer and an Investor Relations guy and another as I recall. someone on this board will recall the hires. The application engineer job summary was Position Summary: Successfully execute application engineering work in the area of In-Process Quality Assurance™ (IPQA®) for advanced manufacturing and 3D metal printing. The responsible candidate will assist customers engineering staff with the successful implementation of B6 Sigma's PrintRite3D® product line for real-time, nondestructive inspection for advanced manufacturing and 3D metal printing.
. Investor Relations well.. A few shareholders on this board were dying for an IR guy to get more PR's and exposure which I believe that Chris Whitty is doing great in this role. The SGLB datasheets were finally updated and more timely responses to investors questions.
I consider the additional personnel necessary to continue grow and expose the PrintRite3D to more potential customers and investors.

3) Joined AMC
AMC has some of the biggest names in the AM game. Lockheed Martin, Rolls Royce, GE Aviation, EOS, UTC Aerospace Systems and more and these guys have stablished contracts to build and test AM parts and SGLB will be hosting them this fall. Look at what some of this players are doing in th AM space.

Lockheed Martin is the prime contractor on the NASA Orion project and "A vent in the Orion capsule that was made using additive manufacturing — the industrial version of 3-D printing — performed optimally, opening the door for future components to be manufactured in this manner. "
http://www.denverpost.com/business/ci_27553010/nasas-orion-initial-data-yields-few-surprises-guides

Lockheed and Honeywell are on the latest America Makes contract with 3D Systems" to develop a precision closed loop and advanced manufacturing and monitoring platform, designed to deliver the accuracy, functionality and repeatability specifications demanded for flight worthy aerospace parts."
http://www.engineering.com/3DPrinting/3DPrintingArticles/ArticleID/9531/3D-Systems-Granted-Two-Military-Contracts.aspx

Rolls-Royce "to Get Largest-Ever 3D Printed Component Off the Ground, Flight-Testing Engine Later This Year"
http://3dprint.com/45820/rolls-royce-largest-3d-printed/

GE Aviation - I don't think I even need the links to the billions of orders for LEAP and GE9X engines whose fuel nozzles and other parts will be AM. We all are aware of the JTDA with Sigma Labs.
http://www.manufacturing.net/news/2014/10/leap-jet-engine-fuels-strong-orders-for-ge

UTC Aerospace Systems "is supporting the development of Boeing's CST-100 Commercial Crew Transportation System, which won a $4.2B Commercial Crew Transportation Capability Contract (CCtCap) from NASA on September 16, 2014. UTC Aerospace Systems is a unit of United Technologies Corp.

UTC Aerospace Systems is using state-of-the art tools and processes, including additive manufacturing to provide affordable, comprehensive design, integration, qualification and production for the CST-100. Delivery is due in 2016 for a 2017 flight to the International Space Station (ISS). "
http://www.marketwatch.com/story/utc-aerospace-systems-supports-boeing-cst-100-vehicle-2014-11-06

SGLB is now positioned with major AM players and has a forum to showcase their PrintRite3D and their expertise so joining AMC is a good use of funds.

4) Materialize and Adurant

Materialize is considering a major player in AM.
Major players in the market include 3D Systems, Inc. (U.S.), Stratasys Ltd. (U.S.), ExOne (U.S.), Arcam AB (Sweden), EnvisionTEC (Germany), EOS (Germany), Materialise NV (Belgium), and MCor Technologies Ltd. (Ireland).
http://www.prnewswire.com/news-releases/global-additive-manufacturing--material-plastics-metals-and-ceramics-market---analysis--forecast-to-2014---2020-300005014.html


Karel Brans, Strategic Partnership Manager of Materialise, notes, “With Streamics automation and control system, the platform supports the workflow in an AM environment, automating several steps along the way and assuring quality and traceability. Linking the Sigma Labs PrintRite3D® product to our software platform enables our mutual users to benefit from this valuable technology from within their trusted Materialise environment.”
http://www.materialise.com/press/materialise-joins-a-new-cooperation-agreement-with-sigma-labs-inc

Sigma Labs is working with Adurant Sigma Labs, Inc. Has Engaged Oracle® Partner Adurant Technologies, LLC to Address Big Data Challenges in Additive Manufacturing of Metal Parts "we must provide our customers with the tools and methods they will need to manage the terabytes of data per part that will be generated as a result of using PrintRite3D® systems as integrated functions within their overall advanced manufacturing enterprise. We have tasked Adurant Technologies to help us develop the architecture, data integration and reporting requirements that will meet these needs and interface seamlessly with enterprise systems from ORACLE Corporation® and SAP AG®. This is an emerging problem for all of additive manufacturing, and we intend to be a leader in offering this critical data management tool."
http://www.marketwatch.com/story/sigma-labs-inc-has-engaged-oracle-partner-adurant-technologies-llc-to-address-big-data-challenges-in-additive-manufacturing-of-metal-parts-2014-06-12

Look at what manufacturers are saying about Big Data
"47% of manufacturers expect big data analytics to have a major impact on company performance making it core to the future of digital factories."
http://www.forbes.com/sites/louiscolumbus/2015/02/15/big-data-analytics-mobile-technologies-and-robotics-defining-the-future-of-digital-factories/
It sounds to me like Mark Cola making the right moves to position SGLB for success.

5) gave Mark a bonus
I remember a few who screamed and hollared over the bonus that Mark received; however, I personally thought it was well deserved for a CEO who makes less that most IT test engineers that I know. I believe that Mark was making about 90K a year and he got a 150K bonus. I believe that if Mark was being careless with the funds then he would've given himself a big raise to go with the bonus or just take the money and run. Mark has not done this but he is using the money to grow the business by making and maintaining connections with the biggest of companies GE and Honeywell and Lockheed and Rolls Royce. These companies are interested and doing business with SGLB because SGLB's patented IPQA process solves real AM quality issues and more importantly. Printrite3D saves them money.

That's my take on SGLB's dilution via private placements and what position management is placing the company in. All signs are pointing to growth. Look at what folks are saying about AM.


"This year will be the year that additive manufacturing starts to deliver a real return on investment for those companies that have made the leap, according to Espen Olsen, European director for aerospace and defence at IFS.
Olsen cites the confidence and investment of major players, such as Rolls-Royce and GE Aviation, in the technology as a clear indicator for the direction of travel for the rest of the aerospace industry. "
http://www.mro-network.com/opinion/2015/01/3d-printing-take-2015/4584


"It has been widely predicted that additive manufacturing — or 3-D printing — will become ubiquitous within the Aerospace and Defense (A&D) industry. A&D is already a huge trendsetter in terms of adopting additive manufacturing and contributing 10.2 percent to the industry's $2.2 billion global revenue in 2012 — and all indications are that this will continue to grow. Rolls-Royce and General Electric have already announced that they plan to produce parts for aviation engines that are lighter and faster to make through additive manufacturing.

In 2014 we saw the huge potential for this technology in aviation. In 2015, as a recent Deloitte University Press report highlighted, I believe it will really show its worth in terms of reducing material costs, decreasing labor content and increasing availability of parts at point of use, having a dramatic impact on the supply chain. We will start to see real ROI. -"
http://www.aviationtoday.com/av/commercial/The-Top-Five-Key-Civil-Aviation-MRO-Trends-to-Watch-Out-for-in-2015_83917.html#.VOgGnCzzlDQ

I continue to invest as AM articles continue to point to growth with more companies, governments, and universities getting in on the AM act. This AM has been 30 years in the making. I'm willing to wait a few years to see SGLB benefit. I implore investors to look at the AM market in general and see if this is an industry that is growing. Does SGLB's PrintRite3D fit? Is this what the AM industry looking for? Does it solve a need? Will is make or save money? IMO the answers are Yes. SGLB's patented IPQA process which they exclusively own is addressing AM industry's need and saving time and money. I believe that as long as AM is a growth industry and SGLB is addressing the needs of their customers then us investors are in a good place. We just need to be vigilant of the AM arena and the players and what they need. Good Luck All and Have a great weekend.