Sigma Labs Inc (SASI)

[silversmith]

The short position in SGLB continues to taper downward. But there is still weakness on the long side, all of it related to the $15 million cash raise. Once all the dust settles from the hedging and warrant conversions, we should resume some share price growth. Indeed, if this is mostly all of the selling pressure we are going to see with the warrants having been converted, then it will be mostly clear the warrant holders are fairly bullish on SGLB. I estimate that only about one million(maybe a tick more) shares of the conversions have gone to the sell side. The short hedging action has definitely come to a stop, and is in fact reversing some. But over the last two weeks, every volume move up was met with conversion share selling. Whether the sell volume was mild, or they are trying to bleed it into the market without tanking the stock, I don't know. If it turns out the sell side volume is low, then we should move up again. Either way, with a real SGLB win announcement, the stock should move hard to large gains.

All the best,
Silversmith