03/19/14 Seeking Alpha article on Sigma Labs http
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03/19/14 Seeking Alpha article on Sigma Labs
http://seekingalpha.com/instablog/23103123-lu...ekingalpha
I don't agree with his opinion of a buyout, though. Vivek Dave specifically stated in the investor conference that they wish to expand into airframe and automotive industries. Below is the article:
Sigma Labs ( OTCQB:SGLB ) has proved its additive processing credibility through its additive manufacturing cooperative agreement with General Electric Aviation ( GE ). Sigma Labs' processing capability of their 3D printing PrintRite3D technology satisfies a niche in the additive manufacturing marketplace.
"The mutually-developed inspection technology will verify the quality and geometry of additive components during the additive build process, increasing additive production speeds up to 25 percent in support of GE Aviation's growing production rates." (GE PR Newsletter May 24, 2013) See full article here
3D printing has gotten a lot of attention this year with corporate buyouts and emerging technologies. Just recently, 3D printing company ExOne ( XONE ) acquired two companies in an effort to vertically integrate their value chain. ExOne is one of the leading manufacturers of 3D printing technology in the current marketplace, with a current market cap of $620 million and a long history of credibility.
" We believe that vertically integrating the processes surrounding additive manufacturing will help to accelerate the adoption cycle for 3D printing in the industrial market place. These acquisitions represent critical post-print processes that are components of the 3D printing value chain. " -David Burns, President and COO of ExOne (Michael Molitch-Hou, March 7,2013) Read full article here .
Stratasys ( SSYS ) acquired company Makerbot in June of 2013. The justification for this acquisition is an effort on Stratasys' part to also compete by vertically integrating their value chain. Stratasys is another leading competitor in the 3D printing industry. With a $5.7 billion market cap, the $403 million dollar price tag on the acquisition is just one extra step the company is taking in order to secure their future in such a competitive industry.
"Until we merged with Stratasys, we spent a lot of our efforts … respecting their IP, and now we kind of have our hands in their cookie jar," Pettis said. "There will be fun stuff coming down the line in a couple years where we can take advantage of that." -Bre Pettis, Co Founder/CEO of Makerbot, in an interview with Signe Brewster of Gigaom.com
3D System Corporation ( DDD ) is the #1 leader by market cap in the 3D printing industry. With $306 million of cash on hand and a current ratio of 5 (Ending 2013), 3D systems is in a position to expend their cash and current liquid assets on purchasing companies in order to vertically integrate their supply chain. A few of the acquisitions previously made are as follows:
- Feb. 19, 2014 - Digital PlaySpace ( DPS )
- Jan. 3, 2014 - Gentle Giant Studios
- Dec. 18, 2013 - Xerox R&D Group ( XRX ) solid ink sector.
- Dec. 13, 2013 - Village Plastics
- Nov. 5, 2013 - Rumors of IBM ( IBM ) buyout.
- Sept. 10,2013 - The Sugar Lab
- Aug. 20, 2013 - CRDM
- Aug. 6, 2013 - Software vendor TeamPlatform
- June. 12,2013 - Phenix Systems
- May 1, 2013 - Rapid product development group
- Jan. 10, 2013 - COWEB
- Jan. 3 , 2013 - Geomagic
- July 23, 2012 - Viztu Technologies
- May 24,2012 - Bespoke Innovations
- Nov. 21, 2011 - Zcorp
For more information regarding ( DDD ) acquisitions refer here .
Sigma Labs ( OTCQB:SGLB ) consists of a management team of renowned business and science professionals. The product PrintRite3D that they have developed is disruptive to the additive manufacturing process of 3D printing. After recently selling a number of their product's to ( GE ) General Electric Aviation, the credibility of their product is in the uprising.
In order for the 3D printing market to successfully penetrate consumers and businesses around the globe, acquisitions are inevitable. The numerous acquisitions that have already taken place up until this date holds significant evidence that Sigma Labs ( OTCQB:SGLB ) is a target for a potential buyout in the near future.
Disclosure: I am long SGLB.
Additional disclosure: I wrote this article myself through my own research. It expresses my own professional opinion. I am not receiving compensation of any kind from any company or affiliated company mentioned in this article. I am not affiliated with any company or companies mentioned in this article other than a long position in Sigma Labs. Please be aware of the risks associated when trading stocks under $1.