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I just finished reading the Elon Musk book and all through the process, I was thinking “LQMT is the exact type of opportunity that Elon Musk would jump on!” It was screaming at me…I’m thoroughly convinced.
I have no idea what s happening behind the scenes but there seem to be a whole lot of moving parts. I sense something really big.
Perhaps Apple could encourage one of their Chinese suppliers to buy Entec/Yahou to decapitate the maze.
Do you really think that Apple would sue a Chinese company in China? Hmmm….drive Eontec/yahoo out of business and lose the Chinese market….it’s a PR war they couldn’t win. They would cut a deal instead.
You are correct ..Apple pays no royalties to LQMT for use in CE products…BUT there is no restriction on Eontec’s/Yihou sharing the income generated. Luge Li has great influence in all 3 entities.
Love for it to happen….but what about a $0.40 buyout offer.?
At the risk of encouraging the naysayers…I’ve never been able to fathom the revenue reporting…the numbers always appear too low for the number of parts and what they should cost. I came to the conclusion that they were reporting our share of the net income generated (maybe a commission).
The Isolite contract ran fron Q3-2020 through Q2-2021 so the impact (plus or minus) should appear in the Q3 results…..but there could be as much as a quarter lag in the reporting so I won’t hazard a guess.
That information could be communicated 1:1 when meeting with prospective customers.
Can you document that the Isolite contract hasn’t been extended? Is there any reason why LQMT would have to make a public announcement…..ditto with the expansion of number of products. Communicating that info only makes LQMT a better target for competitators.
Very few of the options are “in the money” at this point. Many don’t expire until 2027 and 2028 and have strike prices 2-3x the current share price. They will sit on them.
You are correct…the accumulated losses on the balance sheet do expire but the rules changed in 2018. Losses incurred before 2018 have a 20 year expiration but those incurred after 2018 never expire.
Full explanation …check Investopedia…topic “Loss Carryforward”
OK I’ll bite….nobody came forward with the potential value for the tax loss carry forward so I’ll give it a try. First the disclaimer…I’m an engineer, not a tax professional but I can research ( the internet) and will summarize my findings….
LQMT’s cumulative losses are in the neighborhood of $280 million +/- and are carried on the balance sheet.
The IRS allows companies to use previous losses to offset current taxable income…the previous losses do not expire.
When companies combine, the balance sheets are merged and the line items are netted out and become the balance sheet for the combined company. In the case of accumulated losses the total moves to new balance sheet. It has value as a tax offset for the new company.
So…how much is it worth as an offset…that depends upon the incremental tax rate for the combined company.
If the incremental tax rate is 40%….it’s offset value is 40% of $280 million or something like $112 million.
If the incremental tax rate is 20%….the benefit drops to $56 million.
Either case, it’s a big number….the largest on the balance sheet and it’s tracked religiously on each and every 10Q. If it wasn’t important, I would stop reporting it or bury it in a footnote on page 78.
If there are any tax professionals out there, I welcome any input that may be relevant.
Cash investments of $27 million + building at $9-10 million + technology (IP and knowhow at ?
What is the value of $270 million tax loss carry-forward for a profitable acquirer?
Isaac Bresnick’s wife IS an M&A person…go back an read her background from Europe.
Maybe they would like an “inside track” to the capacity/knowledge in the Maze….just a thought
I’ve been here since 2014…not as long as some but still quite a while. Obviously two different areas when I was referring to short term covered call writing.
I buy stocks and sell covered calls within an IRA. My time horizon is typically several weeks. The LQMT events you refer to are glacial in comparison….it’s sort of like being run over by a hurricane verses a tornado…you can see the hurricane coming for days and the tornado is NOW. A tornado is Lugee Li being no longer involved in the company.
The trick is to consider the purchase as an indefinite option on an emerging technology. The potential downside is finite and the upside is many times the downside. It has no expiration. The key is patience.
Seems to be a lot of circular reasoning too….maybe circular exercise.
Tesla isn’t using amorphous metal alloys in their application….YET.
It seems that it would be very “politically inconvenient” for Professor Li to attempt listing on the NASDAQ but Xi has offered an alternative….apply for listing on the new Beijing Exchange. A scheme like this could tap into the very speculative Chinese market and we could be along for the ride. Only question would be the mechanics of the IPO….could Professor Li relinquish 100 million shares to offer to his countrymen? Could LQMT issue additional shares to stoke the fire….what’s the difference between a billion and 1.2 billion anyway.
This is a very intriguing possibility to say the least.
And the logical extension implied in the patent is a holographic projection….right out of “Star wars”.
With the recent crackdown on Chinese individuals owning overseas assets, coupled with their new regulation about Chinese IPOs … makes you wonder if Lugee Li’s plan to list on the NASDAQ is still a possibility. If it is no longer feasible he may be considering the divestiture of his LQMT holding by selling them to an interested third party……Ford, Foxconn, Apple etc. they certainly cannot be sold on the open market.
The Gypsy has arrived! Just joking! Remember that the stock market is foreword looking and anticipating events 3-6 months out so if there is an expectation of something big, the stock will move.
Waiting for the announcement of contracts and revenue to materialize is backward looking. The SP could be $.50 or more before we hear anything “officially.”.
There is a tremendous amount of pumping going on out there in the rest of the world. Even a small fraction jumping in may propel us to $.15 in a flash.
Our royalties are based upon products utilizing BMG….Eontec’s has a thriving medical business based on magnesium alloys that don’t qualify as BMG’s.
One other point , the Lili Yao listed on the BOD for Leader Biomedical in 2016 is the current
Lili Bresnick. There are RUMORS on the other website that she may be related to the good professor.
Leader Biomedical based in Amsterdam…it’s where Isaac Bresnick came from in 2016 to join LQMT. Check out post # 100938 right here on IHub.
I think the Tesla question is more an issue of what product….if we are talking door latches, then it predates the agreement but if the application is a different car part then royalties are in order.. it’s not the company that defines the issue, it’s the application
WOW…I guess all I had to do was post a message with a few numbers in it and the whole thing takes off. Gimme at least 10-15 million shares and it will be a one day 2 bagger.
Good bump but I wish we had more volume 2.5 million barely reaches $200k but 20% a day is good “under the radar” pickings.
New topic…not a word about Bruce…obviously not in the new organization and nowhere to be seen. Question…did he leave before the announcement and precipitate the whole restructuring?
The volume will tell the story….if demand is high, I don’t expect the supply is available without a dramatic price movement. High volume may also indicate a Redditt involvement.
Would we see an 8k from a transaction between Eontec’s and some third party in the US? It would maybe show up in the third party’s disclosures or maybe not if it’s size wasn’t material in relation to the size of the third party.
Back in 2016 when all this began, I thought that Li’s purchase of LQMT was part of a plan to get $64 million out of China and into the US. All part of the master plan to exit China. It all became very confusing when he created LQMT-HK and transferred the shares to that entity…..he made some significant sacrifices to get this going and so far, nothing has materialized.
Is it possible that he transferred the shares to HK so he could use them as collateral to borrow against? Don’t want to be around for that margin call….
I’m not sure that there is Zoom capability between China and the US but I wouldn’t assume it’s a possibility.
Ever think that maybe…just maybe he is unable to leave China? He’s a hero but he is OUR hero so we want you here in China.
Chinese millionaires are moving to Vancouver in droves.
Thanks for the input…I’ve never considered Apple to be a competitator…they are more like a co-conspirator in that we both have spent tens or hundreds of millions on the technology and apparently both can keep our mouths shut. Their technology is both wide and deep. It would be extremely positive for Apple to build a mid-frame or a watch or anything from BMG, not announce it and let a third party discover that it’s BMG. The mystery and secrecy would be worth tens of millions even if we received not a cent.
A little about trade secrets (I worked for a company for 35 years that patented almost nothing but still controlled their technology). So it’s easy to expound…..
When I first looked at BMG moulding, I assumed the dies were made of tool steel because that is the typical material used in that industry….several years later, I saw a reference to the dies being made from copper and I gave it some thought….things like copper is easy to machine, copper has much better heat transfer properties (for heating and cooling—-> relating to cycle time/throughput etc. so I could rationalize why copper was good. HOWEVER copper has flaws…it’s soft, its dimensional change with heat is large and it corrodes so maybe it isn’t ideal.
I then considered that perhaps the copper in the literature wasn’t pure copper…they were referring to a copper alloy that was harder, resistant to corrosion and dimensionally stable while still being an excellent heat conductor. So I went looking for copper alloy moulding dies and guess what? There are moulding dies made from Zinc/Copper/Magnesium manufactured where?…China. Now we have a potentially patented (or not) technology, only loosely related to BMG (probably never stated specifically) that is critical to BMG manufacture to achieve high throughput (cycle time reductions) and quality product. It’s a trade secret and it’s hidden. Multiply this by 10 or 20 and that becomes the technology moat.
Dick Chaney split knowledge into 4 quadrants and this falls into the category of…” We don’t know what we don’t know.”
Just weaving smoke…I continue to be long.
Quick hit product development implies low/no barriers to entry so competition will materialize out of thin air. In that environment, you need to commercialize quickly and be gone to the next campaign in 6 months. Technology builds the barriers to entry and extends the product life cycle.
The purpose of my original post was to get us off the “all they have to do is reverse engineer the formula to get the technology” kick. The patents are getting old but the important part of the technology resides in trade secrets which are much more difficult to copy.
I see our problem (and our moat) in the complexity of he actual manufacturing process and selling the concept to industries that have been spending decades “dumbing down” the worker tasks. I’m not confident that a Ford or GM is capable of making their own BMG parts without really significant upgrading/training. It’s a long process with “you bet your job” consequences.
My greatest concern is the slow implementation leaves the door open for alternate competing technologies to develop and be easier to manufacture. We have some unique properties like RF transparency, strength to weight ratios and a certain degree of manufacturing efficiency but other simpler approaches could pick off chunks of potential markets by doing an end run.
The clock could run out on the technology and that would be a shame.
One of the iterations in the development was the creation of alloys with a controlled degree of crystal formation so you end up with strong , high melt crystalized islands dispersed in an amorphous matrix. Controlling the degree controls the resultant properties. This is somewhat analogous to fiberglass in an epoxy or polyester matrix. Sort of having a filler phase to reinforce the matrix. Get the advantages of crystal structure without the boundary weaknesses.
So when can we expect to see extruded BMG? Going from injection moulding to extrusion in plastics was a very natural evolution…it’s a predictable next step…making flat sheet (cooling will be a trick) could open lots of potential applications. Extruded wire could be interesting…I’m still looking for BMG guitar and piano strings that could have unique acoustic properties.