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From the article:
"Setting a share price can be beneficial for shareholders if the price is higher than the current share price. Issuing new stock at prices lower than current share prices can have a negative impact on the stock"
Again we know Lugees averaged share price is .16. At the time deal was forged share price was .06.
Doesn't get any clearer than this!!!
I am done debating about this.
Article clearly states positives in issuing shares, which is quite contrary to your case. For example, if shares are issued by the company and sold for more than the current share price this actually BENEFITS CURRENT SHAREHOLDERS.
This is exactly what liquidmetal did with lugee Li. Stock was valued at .06 at the time. Shares were sold for an average of .16. Not rocket science!
I'll add one thing to what others have already pointed out as a critique to your post.
An article that clearly talks about positives when a company issues more shares:
http://www.dummies.com/how-to/content/what-penny-stock-investors-should-know-about-dilut.html
It is clear for most on this board that when Liquidmetal sold Li shares for 3x the amount of what shares were priced at the time, and also added 64 million to their bank account, this was a positive for us.
Many are trying to spin this only into a negative for shareholders.
As you said, let each shareholder make up their own mind, but please reference the full spectrum of articles on the subject.
Thanks for the pizza analogy. Maybe you should go and eat it now!
It's not brain surgery DUDE. Look up articles on dilution. Doesn't alway lead to the devaluing of shares!
Got it. Case closed!
I don't know how to make this any clearer.
Issuing more shares does not always lead to the devaluing of shares.
This is the case with Lugee Li so far!
I am sorry if you purchased shares for .25-.35. But the Li deal did not bring the share value down from that price to the current levels. It brought it up from .06 to .16.
End of discussion!
"My point is that the dilution of the Eontec deal will be a drag on the share price compared to what it would be without the dilution. "
My point is this stock would still be valued at a nickel or less right now without the deal! This fact remains no matter how much you purchased your shares at.
So your line of reasoning still doesn't explain how the EONTEC deal is a drag on the share price.
Sorry downplaying a pop from .06 to .16 doesn't somehow dismiss its significance (150% increase).
We will see another 100 % increase as soon as Lugee Li's deal is finalized!!
And then into the low dollar zone upon word of contracts!
Enjoy! We have a very exciting summer ahead of us!!
"Well, the shares purchased by Li were in a private transaction with LQMT and not on the open market. Existing shareholders saw no direct benefit. "
So you don't see the increase from .06 to .16 a benefit to shareholders resulting from the deal with Li!
My account speaks otherwise!!!!
I am afraid your logic is not making much sense.
"The Eontec deal effectively diluted our share value by more than 100%. Probably more like 150% "
Share value is actually up right now as a result the Lugee Li deal and will rise further.
So please explain in concrete numbers how the Lugee Li deal has diluted the share value by 100-150%.
Read my post again!
We already saw one from .06 to .16.
Next one around the corner!
Enjoy!
I wouldn't want to be sitting on the sidelines hoping to buy in lower when this stock pops!
We already have gone from .06 to .16.
I expect our next pop will be from .16 to .30---Just on the Lugee Li confirmation alone!
Thanks Rige! A very helpful corrective to some more false assumptions posted on this board.
Eagle,
I hope you have held onto your shares.
This stock is about to explode. .50 is around the corner.
There is lots of anticipation and expectation out there for contracts to emerge anytime, and for the 55 million from Lugee to finalize.
Investors know this stock is primed for a huge pop when either one of these is announced!
We will not see .12 again. The writing is on the wall for all to read!!!
What he said was that the company could be at break even by end of the year, which would amount to over 10 million dollars in revenue in the next 6 months alone!
So many positive irons in the fire!! contracts will soon be announced!
That's why we are seeing investors jumping into the stock and the share price rising to .168 today!
I hope you stocked up in the 16s, tomorrow we will see the share price rise into the .17s+
Not cheesy at all. The knife exhibits the tremendous capability of injection molding liquidmetal!!!!
"Others like to key on his/Hauck's crazy extrapolation of would-be contracts from would-be RFQs"
These are not crazy extrapolations at all. Rather they are estimates based on on the fact of real developments. Here is quote of Hauck from a cc.
"our efforts throughout 2015 have moved several applications far enough along the development path that we anticipate being able to secure 10-15 new customer orders this year"
Let me reiterate-- they have "moved several applications far enough along the development path" to come to these estimates. That is estimates based on the fact that they are moving applications through their development process, not just some crazy extrapolation!!!
I hope you enjoy buying in at .25-.45!!
I am already benefiting!! Thanks!
Sorry hangman does not always win. Enjoy the run up today!
Too many irons in the fire to keep this stock down, let alone hung!
There is more to this hobbit than meets the eye!
Not a coincidence that this has gone up over 10 percent just in the last day!
Wouldn't surprise me if something was leaked about Lugees money coming through.
We will know soon!
I still believe .21 is coming. Put me down for this please.
"While our sales cycle is long, our efforts throughout 2015 have moved several applications far enough along the development path that we anticipate being able to secure 10 to 15 new customer orders this year."
A quote by Hauck basing his 10-15 new customer orders on the basis that they "have moved several applications far enough along the development path" to make this estimate!
"why are these guys making noises overseas, but there is no noise in the USA under Hauck...hmmmmmmmm and hmmmmmmm?"
This is not a fair statement at all. Hauck indeed came out in the 4Q CC and clarified many of the positive happenings taking place through his leadership in the USA.
I have quoted Hauck from the CC below for investors to see for themselves. Let's not down play the REALITY of the immense noise being made by Hauck in the USA:
"Paul Hauck
Thanks, Tony. 2015 was a pivotal year for Liquidmetal Technologies as we continue to execute on our long-term business strategies to develop an industry. After much work in 2014 focusing on marketing needs and assembling our first group of manufacturing sales representatives or MSRs, we finished 2015 with solid evidence that we are on the right path to success.
Our sales cycle is long, as it requires educating design engineers on the virtues of our material and teaching them how to design parts for our technology. Our focus in 2015 centered on efforts to stimulate market interest providing opportunities to get in front of the right customers and capturing customer interest in promising applications.
Today, I’m going to share our year-end results from these efforts by comparing key performance metrics to where we were at the end of 2014. I will also give some insight to our developing customer application opportunities list.
MSRs are the core of our selling efforts. They provide broad market penetration and play a critical role in educating end users. Throughout 2015, we worked hard to add representation in the remaining open areas of North America, increasing the number of individuals selling for us from 14 at the end of 2014 to 25 at the end of 2015.
Request for quotes or RFQs increased from 20 in 2014 to an impressive 308 in 2015. Furthermore, the quality of RFQs continued to increase throughout the year as we continued to educate a growing number of engineering and procurement professionals about our technology.
Between our MSRs and the Liquidmetal staff, 265 customer visits were made in 2015 versus 10 in 2014, and we presented face-to-face technology presentations to 620 engineering professionals versus 50 in 2014. This effort resulted in nine orders of which two were for production part.
I want to take this opportunity to thank our highly talented MSRs for their fantastic effort and investment they made into Liquidmetal throughout 2015. With all of this great activity, our ultimate goal is to make sure we are chasing the right applications.
We sharpen our focus by building a customer opportunities list. This is a list of specific applications where we have early positive interest from customers regarding our value proposition, whether it be our material properties, design flexibility or cost.
We track the value of these applications in terms of projected annualized revenue. Our list totaled $500,000 at the end of 2014 but grew to 27 million by the end of 2015. Seeing in the increase in application opportunities is exciting, however, more important to me is the quality of customers we’ve managed to engage with to see their serious interest in our technology.
We are talking to global leaders in a broad range of markets. In the medical market, we are seeing many applications from the largest medical device manufacturers in the world. We are also discussing joint development agreements, which demonstrates strong interest by customers to leverage the benefits of our technology.
The automotive market also continues to show interest in our technology and we are discussing opportunities to both directly manufacture parts and to license our manufacturing technology.
While our sales cycle is long, our efforts throughout 2015 have moved several applications far enough along the development path that we anticipate being able to secure 10 to 15 new customer orders this year. I am enthusiastic about our ability to achieve these results evidenced by the nine orders we received in 2015, all of which were identified on our 2014 opportunities list."
"Occasionally I look at the figures below to see how the PPS has been inflated."
Inflated is when investors bought in at dollars per share, but didn't really understand the current reality of the technology at the time!
I would say the current share price is under inflated again because investors don't understand the current reality of the technology today.
Yet, the current reality of liquidmetal will soon be revealed for the world to see, and then it will be too late to buy in at these prices!
Thanks for bringing that up. It's certainly not outside of reality!
In the interim we have Engel, a strong partner who obviously believes in liquidmetal and Steipps leadership and are current advocates for the company, both in terms of their investment in machines and in their promotions for liquidmetal.
And let's not forget that Lugee Li's 55 million will soon be transferred to liquidmetals bank account, and the announcement of that transaction will send the share price soaring to .30.
A contract from the 160,000 in pre-production orders can be announced any day, and let's see the impact that has on the stock price, especially as investors factor in another 9-14 contracts in the price. Low dollars is not far off!
Enjoy your summer. Things seem to be sizzling for liquidmetal!!!
The REALITY IS that Apple indeed will use liquidmetal and liquidmetal will receive huge revenues when Apple contracts them for manufacturing!
Enjoy our ride up today!
"Reality is that Apple using it or not is not an expectation an investor here should have."
Investors here can make up their own mind in regard to their exceptions for Apple.
Perfectly legitimate to have expectations that Apple will indeed use liquidmetal, and that there is potential for revenue for liquidmetal!
Investing in any stock is a risk. Sorry no one has entitlement when investing in stocks.
Don't worry we are not going to see .12s again.
Enjoy the ride up this week!!!
I believe you are wrong, and making many assumptions, that are not rooted into factual evidence at all.
Hauck was making his predictions on the fact that many companies had been convinced of the cost effectiveness and benefits of using the current Engel IM process for liquidmetal parts. This guy is not an idiot and knows what is capable with Engel machines.
There is no reason to doubt that we will indeed see the orders he has predicted the second half of this year!
When we do this stock will be in the low dollars, and false assumptions in regard to Engel machines not being cost productive laid to rest.
Until then enjoy the climb up into the .20s soon!!!
"It is clear that the ENGEL machine is not cost effective even within its own parameters, particularly on cycle time."
Link please! I don't think this is clear at all.
Hauck himself stated 9-15 contracts coming in 2016, based on 2015 RFQs which would be dependent on Engels horizontal IM machines.
I take Hauck at his word. Obviously we have a market that does believe the Engel horizontal IM machines are cost effective or we wouldn't be getting these orders.
Certainly for different applications we will see vertical IM playing a critical role, but to minimize Engels horizontal IM machine as "not cost effective" has no validating proof, and flies in the face of the 9-15 orders Hauck said will come in this year.
Interesting speculation in regard to Gamesc D&D.
But I don't think that it really points to liquidmetal or Apple giving up on the horizontal machines or on Engels IM machines since they both offer different advantages for different types of production needs.
"Nothing holding the stock up between the present 13.6 and 12 except forward looking hoopla."
How about the fact of Lugee Li's 64 million being invested in liquidmetal. I don't see this as forward looking hoopla at all!
How about the fact that Engel is talking about hundreds of customers excited about liquidmetal. I don't see this as forward looking hoopla from Engel!
How about the fact that we have over $160,000 in pre-production orders. This is a wonderful sign of the interest in liquidmetal and potential for contracts. This isn't hoopla to me at all, but a sign that we are going through the necessary process toward production contracts!
What you call hoopla, will soon bring liquidmetal into the .20s and then the low dollars with our first contracts!
Still expecting to be over .20 soon.
Shouldn't be much longer, next week I would expect, before we hear about Lugee Li finalizing his 55 million with liquidmetal.
Steipp will come through with the new orders soon and we will be in the low dollars.
Those sitting on the sidelines waiting for the price to drop further will be left with empty hands.
Sizzling, exciting summer on its way!!!
Link showing that management cashed in there shares during the 1.75 spike please!!
How about when it was up to 1.75?
No sales by insiders during that spike.
So I didn't throw in the R&D part. Doesn't mean I am communicating innacurately. Just means the R&D is presumed in speaking about the millions to get us to a patent.
Honestly Don' think it's worth the boards time to nick pick about this.
Lqmt insiders have and are holding long onto their shares!!!
This is totally unlike GTAT!
Get it!
This is old news.
We are at a stage now where we stand at the front door of commercializing liquidmetal on a grand scale!
Looking forward to an exciting summer!