Pandorn,
I will take the liberty of presenting my view of the picture, in conjunction with, and contrast to, Alan's view. When you refer to Sigma Lab seeming to drop 69% of their company value with a share price change, you are implying that the common share price actually represents the value and potential of the company. At this moment in time it doesn't for Sigma Lab. The value of the company is not yet firmly linked with its common share price. The common share behavior is not sufficiently mature enough for that.
The private offering that was placed, and the reluctance of the company admin to further dilute the float, leads me to believe that the private offering went to entities that are willing to hold tight at least until product release and industry judgement has concluded. I would not expect large share blocks coming to market in January.
So, if there is any conviction with owning common shares of this stock, it would be proper to give the benefit of the doubt to the company for the time being. Let them work the product release process, roll out the solution to the industry, and prepare for the industry feedback of the effectiveness of the product. As such, this should concur with a movement of the share price over the next two and three month period into the .40 to .45 range, or a market cap of around $200 million. Then it should trade sideways until product rollout. Once product quality is being evaluated and feedback offered to the public, then it either is positive or negative. If the industry judgement is negative, then the share price would, and should, fall to who knows where. If it is positive judgement, then I would expect that with an April 2014 timeframe of product offering, that we would at this time next year, be seeing share prices in the $1.25 range. As the first generation, and start of second generation, devices evolve, I anticipate a three year out share price in the $3.20 to $3.50 range.
All the best,
Silversmith
