I’ve been quiet about Sigma Labs (SGLB) (web site) for about two years now.
As long time subscribers know, I was very bullish on the company in 2013, and shares in SGLB strongly outperformed all other 3D printing stocks by the end of the year.
The problem was, the company didn’t generate anywhere near the amount of revenues I expected (which of course was not an uncommon occurrence for 3D printing stocks during 2014-2016). Due to the lack of sales, I sold my shares at a profit, (having bought them near their all time lows up to that point), and that turned out to be a good decision.
In fairness, I believe management fully expected faster commercialization of Sigma Labs’ PrintRite3D® system, as well. The patented system includes integrated, interactive software modules that combine inspection, feedback, data collection and critical analysis for additive manufacturing. By performing inspection during the printing process, it ensures perfect parts (essential in high-value aerospace applications), and speeds up the overall printing process.
The technology from Sigma Labs:
- Provides objective evidence of compliance to design intent
- Optimizes 3D printing production
- Provides defect detection during printing
- Reduces scrap and increases yield
But it’s time to take another look at Sigma Labs, and build a position again (I’m a buyer today, 2/14/17) and plan to add to my position over time.
I’m also happy to be publishing (soon) a Q&A with the CEO of Sigma Labs, Mark Cola. I think investors will find the Q&A interesting and informative.
What investors should be aware of right now is this:
Sigma Labs filed an S-1 statement that I believe has some hidden gold in it.
On page 38 they mention a partnership with a private company called Morf3D:
In an effort to bring enhanced solutions for additive manufacturing (“AM”) to the aerospace and defense (“A&D”) sector and capitalize on growth in demand for 3D printed metal components within the A&D industry, we recently entered into a strategic alliance with Morf3D, a California-based company that specializes in additive engineering and manufacturing with metals and that provides advisory services in additive manufacturing strategy and technology adoption road-mapping. By leveraging our PrintRite3D® quality assurance software, we believe that Morf3D will be able to provide a means for its customers to increase AM production rates while ensuring consistent part quality, thereby better meeting the high quality demands of its aerospace customers. We also plan to work together with Morf3D to manufacture certain 3D printed parts. Morph3D has informed us that it is a party to development contracts with aircraft, space, medical and automotive customers, and that it expects to commence serial production contracts in 2017. We believe that by working together with Morf3D, we will be in a position to design, manufacture, and assure the quality of AM components across a number of important aerospace applications, which could lead to the generation of a meaningful amount of additional revenue for our company beginning in 2017.
Morf3D ( www.Morf3D.com ) is a Tier I supplier of 3D printed parts to several aerospace giants (including Boeing), and I’ve been told they can not keep up with demand. This is why a partnership with Sigma Labs not only makes sense, but why that partnership (I strongly believe) will bring significant revenue to SGLB this year, in addition to the revenue from recently announced news such as:
Sigma Labs has a current market cap of just $13 million, which will double or triple with the ramp in cold hard revenue that I’m expecting the company to announce this year.
Much more to come!
Best wishes for profitable investing,
Disclosure: I own shares of Sigma Labs (SGLB) I have not been paid by any person or any company for this article.