Disclosure: Long. Only invest what you can afford to lose. Do not mortgage the house or sell the kid in order to buy more of this stock.
I took some time to jot down some pros and cons that were floating around in my head. It's certainly not all inclusive, this is just what I recall and I did some quick searching and scanning to confirm some of the info below.
I tried to be as objective as possible but it's very tough to do. Several of the below points are easy to refute and I apologize in advance if I got any facts wrong.
Opinions are like noses, everyone has one.
Here it is.
Pros:
- MOUs and JTDAs with big companies like Metronic Systems, GE, HON (DARPA initiative) and Burke E. Porter Machinery
- Awarded grant money from NIST
- Potential to be the standard for IPQA / additive manufacturing metal parts
- Metronic Systems has a lot of contacts, hopefully SGLB can tap into some of those
- Tom O'Mara joined SGLB board in early November. Per the presser to help with the commercialization of the product
- Conrtact with LANL
- The work GE is doing in this space is very positive. We all *hope* SGLB benefits from this. Most signs point to "yes" even though we haven't seen any updates. We can just insert SGLB into quips made by people like Greg Morris
- The balance sheet looks pretty nice for an OTC / penny stock
- IPQA and closed loop *may be* the only in process game in town
- Read the other *objective* pros from JJ's blog and benefit from the extreme DD done
- MOU with Interactive machines (Metal3dx) -- not sure if I believe this one will ever come to fruition
- Potential to uplist if commercialization happens
- Reverse split may be well received
- A buy-out from GE is possible
- We see great volume for an OTC Penny stock. 6 million on average. On the run up to .28 we were seeing 12+ million.
- Great story and seemingly great people behind this company
- A huge amount of upside with the potential to make some serious coin.
Cons:
- MOUs and JTDAs are not contacts. It just means they can talk to one another and they can work together if they want.
- Commercialization was missed in 2011 and 2012
- Per Sigma's website, INSPECT is in beta, DEFORM and THERMAL are in development. Patents date back to 2000,2003. Why is it taking so long?
- Sigma only has 7 employees
- Share dilution. 120 million shares offered up at .01. Due to expire in January, may be happening for some now though since we seem to be hitting a .19 ceiling
- Flippers and shorts and retail investors who hop on the hype train without knowing the company. Buying at .21 and selling at .22 for example. Rather large short interest.
- Large number of outstanding shares and high market cap. $1 is a market cap of 500 million. Obviously $2 is 1 billion
- Terrible bashing on the Yahoo! message boards for this stock
- Old MOUs and JTDAs *seem to have gone* nowhere (4 with Messier-Bugatti-Dowty with no apparent news)
- Contract with LANL is to generate "up to" 178,800 in revenues (no guarantee)
- If no commercialization in 2014, additional share dilution may happen in order to raise funds
- There are a lot of other smart people and companies out there. Who is to say SGLB will be the one?
- No recent articles aside from MOUs and JTDAs where SGLB is mentioned
- GE has deep pockets, they no doubt have a lot of JTDAs and MOUs with other companies. They may just be taking SGLB out for a test drive similar to how other MOUs and JTDAs were renewed then just stopped
- Mark Cola is not very transparent
- A medium amount of risk
