So I lept before reviewing the filing. That was stupid because my 8.4 cent buy was really like buying at 12 yesterday if you account for the dilution. The offering doesn't bother me as much as the details. Essentially, this company is worth 28% less today than yesterday and that's not accounting for the huge run up. With this bad news, and it is bad news, it's likely going to halt the run and hit longs hard.
I would expect to see, with no positive news, the pps falling to 2.5-4.5 cents over the next few months which would value the company at about ~15-30M with today's dilution. A bad earnings release and the company is back to a penny. It's clear this deal has been in the works for months and I'm sure managmenet is sick and kicking themselves for not waiting. The offering is good in that it keeps them afloat for another year and that shares can't be sold (by rule) for six months. Hopefully management is sitting on good news or prepared to give a full explanation as to why they would sell so much of the business at such a discount.
Oh, yes--the agony of it all. We went up 34% in one day (nothing on this board about THAT) then HORRORS! Now we're down to where we were a WEEK ago! I'm only up 151.72% for the year on this stock! The sky is falling, get out while you can, etc. Those that think that making it big in with this company involves timing, selling, buying, all that stuff may make a few clams but don't have a clue about the men behind this company. They're engineers and scientists, and are in it for the FUN of it, for doing stuff on a grand scale that's never been done before. This is a "story stock", the conventional analysis metrics don't apply. No guarantees, it could drop to zero. But I think I see where we're going, and I"m sittin' on my shares 'till the cows come home or until my wife decides to let me retire--at which time I plan to buy her a new Honda (she likes Hondas--go figure) and a new BMW, Porsche, atomic-powered Tesla or the like for myself. Maybe all 3. And a house with a garage big enough to put 'em in.
See you in the future...
Sentiment: Strong Buy
So maybe you can tell me. Is this correct thinking or not, regarding how they arranged this funding. Isn't it better to have the same amount of investment at a lower par, because that puts more shares into circulation, and more shares reduces volatility, plus 2, I'm sure their financial team clearly has job 1 of stepping up, OTC tier to major markets, and they need to get a fair number of shares in circulation, amongst other things, etc. to qualify to uplist. Is this correct?
It's probably that guy Francis Yopak in Massachusetts they were talking about when discussing that deal with Interactive Machines.... from what I gather it's a one-man or mostly one-man show, operated as a sole proprietorship for a long time and office in a residential area. I know two guys who run a robotics company doing specialized solutions for factories with the same model. Tiny office, big clients, houses with elevators in them, if you get my drift.
Well.... GE would've picked them up for $0.50-$0.60/sh before.
Now maybe they'll offer $0.25-$0.45/sh.
Still... stranger things have happened. Whoever got those 120MM restricted
shares is probably going to make a minimum 3-4x there loan extension in January 2014.
Wait, that puts this right back at $0.24-$0.32/sh.
Save yourself the anguish of an additional 20% cap gain and wait it out.
This story is far from over yet.
harit, I like how you think but you need an underlying justification to value the company at a certain level. At .24 SGLB and at today’s float the company is valued at $155M…I don’t how you can justify that without some fundamentals to back that up. $52M was top of the mark for me in terms of valuation.
I think the more exciting thing is that Cola specifically stated that the money is 1) for continuing development of PrintRite3D, and 2) TO MAKE THEIR OWN HIGH EFFICIENCY METAL PRINTER. IIf they're successful, it'd absolutely kill XONE... I watched that video and it was slow, extremely complicated [like 15 steps...or 15 opportunities for malfunction] and not to mention ridiculously expensive.