Keeping a keen eye on the Financial Markets

Two 3D Printing Penny Stocks That Offer Industry Solutions

3D PRINTING- PENNY

SIGMA LABS

Sigma Labs, Inc. (SGLB) is a 3D Printing Penny Stock that develops progressive quality inspection systems  designed for 3D Metal Printing as well as other cutting-edge manufacturing technologies.   In the following chart, we could see that Sigma Labs, Inc. has managed to hold its own in the midst of the significant 3D Printing sell-off that has taken place this year.

sigma labs inc

In their recent 10-K, Sigma Labs’s annual revenue for 2013 increased by 8.6% from the prior year.  However, Sigma Labs’s total expenses increased by over 15% due to a substantial increase in General & Administration expenses and Non-Cash Stock Compensation expenses.

Yet, Sigma Labs maintains a strong liquidity position.  They have no long-term debt and have a current ratio of 9.36.  Thus, they are in a strong position to commence plans for future expansion.

This week, it was announced that Sigma Labs had signed a Technology Cooperation agreement with Belgian 3D Printing Firm Materialise NV.  This was a collaborative agreement that allows both parties to participate in the integration, manufacturing and promotion of quality inspection software called PrintRite3D®.   Sigma Labs is set to incorporate this technology into their 3D Printing Software.

Through this product, Sigma Labs has the opportunity to achieve a significant competitive advantage based on the fact that they could provide real industry solutions for 3D Printing.

PrintRite3D® claims that they will enhance process reliability and repetition.   The firm is aiming for the product to be a strong answer to the qualitative problems that have become associated with Metal 3D Printing.   One solution to the quality issue is an application called PrintRite3D® Inspect.  This program will serve to provide a real-time verification of part quality during the process.

As a result, this will eliminate the post-inspection process that has been often described as time-consuming.   Enhanced Quality + Saved Time = Industry Solution.

Additionally, PrintRite3D® may also serve in providing enhanced accuracy of shape creation.  This is accomplished through their PrintRite3D® Deform application.   This app is programmed to detect distortion as well as verification of a part’s geometry prior to the completion of the final printed product.

Thus, Sigma-Labs have the opportunity to provide game-changing industry solutions with PrintRite3D®.  If successful, there is plenty of reason to believe that the firm (and consequently its stock price) will benefit greatly.

As of April 23rd, Sigma Labs is trading at $0.15.

ZECOTEK PHOTONICS

Zecotek Photonics (TSX-V: ZMS; Other OTC: ZMSPF) is a 3D Printing Penny Stock that has developed laser, imaging and 3D Display Systems for use in the technological, medical and industrial sectors. The firm was founded in 2004.

On January 31st 2014, Zecotek Photonics entered the 3D Printing space via an announcement of a 3D Printing interface platform that was promoted as providing significant advantages in terms of cost savings, saved time and enhanced design.   The design would be done by its subsidiary, Zecotek Display Systems Pte. Ltd.

As described by Zecotek’s CEO Dr. A.F. Zerrouk, Zecotek is seeking to leverage its core 3D display technology to give customers an enhanced 3D image of the potential 3D-printed product.   Since the technology has a user interface, users can view the image from various perspectives and make any necessary edits or changes.

One month later, Zecotek went a step further and announced the development of its 1st 3D Printer.   Working in conjunction with its long-time Armenian partner LT-Pyrkal, Zecotek is set to create a high-speed 3D Printer by leveraging their experience in their core businesses.

Recently, I went to the Inside 3D Printing Conference in New York City and listened to 3D Systems (DDD) Avi Reichental boast about the potential for 3D Printers to be in all homes.

While I appreciate his enthusiasm, this will not occur until 3D Printers gain the characteristic that Mickey wanted Rocky Balboa to possess in Rocky II:  Speed.

mickey and rocky

3D Printing will not reach the stage of mass customization until the speed of 3D Printers is optimized.   This concern was raised by Hewlett-Packard (HPQ) CEO Meg Whitman who stated that 3D Printers were “like watching ice melt”.   It will be interesting to see if Zecotek‘s 3D Printer pushes the envelope in terms of 3D Printing speed.

Zecotek’s financial position leaves a lot to be desired.   According to recently released second-quarter earnings, Zecotek gained just over $41,000 in revenue for the quarter.  The company incurred a 1.669 million dollar net loss and a negative EPS of -0.02. Both of these figures are double the respective amounts of the prior year.

Additionally, Zecotek may have difficulty paying short-term expenditures with a current ratio of 0.5 and a quick ratio of 0.43.

Currently, Zecotek trades at $0.68 on the TSX Venture Exchange and at $0.63 in the Other OTC markets.

Nevertheless, it will be interesting to see if these 3D printing penny stocks can fill in the gaps that currently exist in the 3D Printing industry.

 

 

Andre Waldron

Andre Waldron is the founder of Market Eyewitness. He provides financial analysis and commentary on equities, economic indicators, industries and mutual funds. In addition, Andre Waldron is also a contributor to Seeking Alpha as well as The Street.

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