Replies to post #47401 on Sigma Labs Inc (SASI)

[Capt_Smith77]

Well after today the company "should" be in a stronger position moving forward, but they do need to get approved and on the Nasdaq so institutional investors can jump in and lock up what's essentially going to be an even tighter float. That should mean that we will likely keep a decent PPS until real revenues come in. For those of us that already own shares we'll have to see a PPS around $5 to hold our current stock value.

For those just buying in (or back in) there will likely be a discounted valuation MC wise compared to today, though that isn't guaranteed and also doesn't factor in any potential news releases pertaining to contracts. If the company has interests in buying printers for manufacturing parts with a good portion of the proceeds, then that too may factor into the news stream as a move such as that would help with cash flow and revenue projections.

There are a lot of moving parts, but I like a lot of what I read in the filing and believe the company only continues to get stronger. Some people complained about the company not having any cash or having to put up IP as collateral, but after today those issues are no longer in play.

[alanthill]

I'm with you Duffy, I don't understand a lot of it either. By my calculations they don't meet the $750,000 net income threshold to qualify for the Capital Markets, nor do they meet the tangible assets threshold of two million dollars. Their plans for the use of the proceeds is also questionable. After buying manufacturing equipment and tools, as well as repaying the loan they will be left with only 2.4 million for operating expenses. That does not seem like a great deal of cushion. I'm not sure exactly how they arrived at the expected offering price of $5.50. That also seems terribly optimistic in my opinion. Driftin hit the nail on the head however with his observation that a very major contract needs to be waiting in the wings or the share price is going to be decimated. Silver's optimistic belief that somehow NASDAQ investors are going to see gold at the end of this rainbow not withstanding. It ain't going to happen.