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Question related to earnings.....LQMT is due to report earnings before 3/12/2020 and some of us are expecting at least a mention of potential cash from royalties AND Eontec is scheduled to report earnings on 4/27/2020 (according to Bloomberg). I see a potential conflict whereby the disclosure by LQMT creates a premature release of pertinent information affecting Eontec stock and raising the interest of the Shenzen (?) regulators.
If there are royalties and LQMT chooses to delay reporting, they run afoul of the SEC.
Is there a way to walk this tightrope (a la Walenda)?
Would they be able to award the royalties on 4/27/2020 as part of the Eontec earnings release?
Eontec’s volatility has been through the roof...traded 82 million verses a public float of152 million. Raised a few flags
I can give you a list of ingredients to make a cake and even the quantities of each and I bet you can’t make an acceptable cake. The trade secrets are in the process...in the “how to” which is much more difficult to reverse engineer.
Eontec is the key...and it’s moving against the tide upward. Li has 100 million shares of Eontec worth something more than $200 million...his investment in LQMT was $60 million which has morphed into $40 million. He isn’t going to abandon it, but it may be a lower priority with everything that is going on currently.
Said it before...Eontec first (stock goes to 25¥ and then Liquidmetal will ride the wave.
Not too optimistic about Next earning report since we didn’t actually sell the machines, building lease starts on 3/1 so no cash there and slight possibilities of Billings from October/November/December. Hopefully some “trickle down” from Eontec will soften the blow..
Patience is difficult
I don’t think you understand the process.
Any info on where the laid off LQMT employees landed...I was thinking they either went to Apple or to the operation where the machines landed. Machine operators for this type of equipment are really scarce and it makes sense to follow the machines.
5 million volume is good but I would like to see 3-5x that amount. 5.2 million is still only slightly more than half a million bucks and not indicative to outrageous demand.
Eontec has 400 million shares outstanding with 152 million public float and trades 14.9 million average.
LQMT still owns the equipment.....I wonder if this agreement was fashioned after the Eontec/LQMT agreement that we have never seen? Six (6) percent seems appropriate for Eontec sales to LQMT territories.
$150 million in worldwide sales converts to $10 million or a penny a share supporting a price of probably 20 or 30 cents depending upon how quickly it ramps.....could be interesting.
$23k+ sort of put everything in perspective...I don’t think he will accept that situation indefinitely.
If I understand what is being said....this could be a quantum leap for something like iPhone 13 or 14.
Your non-profit scenario has always been on the sidelines but it is different in several aspects. First you indicate the purpose of the public company portion is to raise capital but in this case, they invested $60+ million which doesn’t make sense if the intention is to “milk” the public portion. Second, if Li’s conglomerate intends to ever sell in the US, they need local representation and being associated ( even casually) with Apple gives them credibility.
They have a lot of “balls in the air” in China right now...once under control, I expect several key partnerships will be established in the US....it may take a year or three. The US isn’t their top priority right now...Patience.
My opinion is that they will provide cash flow to get to break even in the interim but to achieve Li’s dream, they need a thousand machines around the world...many with partners.
China’s #1 priority right now is to ensure that their people have enough to eat in the next 12 months. They have culled 300 million pigs (because of the African Swine Fever) and that represents 50% of the total hog population. They are compensating farmers $170 per animal and local governments are running out of money.
This is why we are making progress in the TW because they are negotiating for $50+ billion in agricultural products....they have become somewhat desperate.
Hungry people are difficult to control and the riots will come....the army will be used and it will turn ugly.
Good move on about 15 million shares in 90 minutes which is about the average daily volume. I want to see Eon rocket to 25-30 yuan because they have filled those 90 machines. Next I want an announcement that another 50 machines have been ordered.
Not asking for too much!
In my 6 years with LQMT, I estimate that only 10% of the time was spent above $.30. Second point...I don’t think the TW had/has any impact on the adoption rate of the new technology. There are too many moving parts to assign a single cause.
just my thoughts on the topic
I would be happy to see the SP finish 2020 at $.30 followed by $.60 in 2021 and $1.20 in 2022.....it’s possible if some of these potential applications become reality.
Television took more than 20 years to commercialize.
Not a surprise at all. Anybody have leads on the others that were downsized?
Another interesting point...the patent also talks of BMG foil as a starting point instead of powder. This raises the question of “how to make BMG foil?” Casting and rolling won’t work but it allows me to speculate on the possibility of an additional patent in the area of BMG extrusion as a continuous process. By necessity the thickness would have to be thin to achieve acceptable cooling rates..hence the term “foil” but this patent allows many layers to be combined to get a useful thickness. Stay tuned...these are exciting times.
The process described is similar to making ceramic pottery...you create a “green casting” from a B!MG powder and subsequently heat it to an elevated temperature to fuse the particles without going too high which would destroy the BMG unique properties. Using the oven for this makes more sense than using it for sintering MIM parts with an inherent 15-20% dimensional shrinkage which goes 180 degrees from the BMG message.
This is significant...not only does it prevent a competitor from circumventing your primary technology but it allows the manufacture of large pieces like automobile body panels. It sorta fits with the need for a 4000 amp sintering oven also....which was probably not on the “wish list” when the building was purchased.
Things seem to fall together as the pieces slowly arrive.
I would be very happy to see a release from Yian announcing plans for another 50 machines to be operational in July. Keep the momentum going!,
Eontec interesting thing...it opened up 10% and only traded 5.1 million shares before it was halted. Average daily volume is +/- 25 million so there could be lots of “pent-up” demand going forward.
Looks like another MAZE....Leader that is.
Nope...just poor keyboarding.
Just addled to my position....first time since 2016!
That’s interesting...I think the Apple linkage is still there...maybe in the background. Remember the attorneys vs Visser had an Apple connection also.
I can envision Apple going to Flextronic and saying “We have exclusive, perpetual rights to this technology but LQMT needs help getting it off the ground...we want to use this in x-years, bring it to a reality and you can supply us”
Flextronics has $2 billion in cash on the balance sheet and added $200 million in Q1-2020. They will take a big hit on the China exit but they described that as low margin sales in their mix. They highlight auto and medical as target markets where they see non CE growth.
They are listed on the NASDAQ.......hmmm!
Flextronic has an incubator facility in Malpitas, California specializing in the development of disruptive technologies. LQMT may be a good fit if they are willing to bend their charter...we are older and believe it or not bigger than their target opportunities. The operation is called “Lab IX”. Some sort of business arrangement provides $ and access to all the technical resources of a company employing 200,000.
All this is from Wiki and they are never wrong
Anybody know if the headcount reductions have actually happened yet...I seem to remember a part about extending the implementation date to accommodate transitional orders for the few customers with whom they have commitments.
I see the potential partner saying “I’ll put $100 million in if you will do likewise”. Gotta have skin in the game to cement the commitment.
So you take the $60 million, invest it in LM-HK and then loan it to LM-NA @2% as an investment. Carrying charge $1.2 million annually. Peanuts compared to $2 million/quarter they have been burning.
Also don’t forget the $30 million in the bank.
I see critical mass coming together!
Just dreaming....so Li has just raised $60 million in cash....what if it’s to be seed money to create a BMG manufacturing center in the US with a major partner...think Foxconn, Microsoft, an auto company , just half asleep since it’s 6am.
Interesting....135000 share transaction this am with no impact on price.
Thanks...2500 seems much more reasonable...my source is MarketWatch listing sales per employee at ¥460.66...a very precise number when divided by 7 gives us $65k per employee which is a very logical number. if I multiply headcount by sales per employee (2500 x $65k) results in an annual revenue figure of $162 million which is virtually the same as $160 million in the previous note
Looking at Reuters, Bloomberg and MarketWatch, I find that some are mixing quarterly figures with annual figures....just a caution...caught me.
Not really joking.....Eontec’s market cap is ¥7 billion or about $1 billion USD.....it’s price/sales is 6 which says annual revenue is $160 million USD. Net income is 5% which gives a net income dollars of $8 million which is incapable of funding the LM expansion in any reasonable timeframe.
All that current building is supporting the magnesium metals operation...the part I have trouble understanding is the revenue per employee is ¥460k or $65k USD....doing the division $160 million/$65k results in a headcount of 24,000 which is way too big although I think I saw a number of 22,000 last year and I thought that was too big then.
The whole idea behind this move is to achieve critical mass to properly develop the technology....LQMT was always tiny, Eontec is only slightly larger (and undercapitalized) ...Yi’an is larger but still not huge etc.....
The important applications are huge and, as such, the larger companies are not going to risk their future on some under funded small enterprise...we need to be big to be credible. We need to be big to fund the manufacturing capacity to satisfy the big applications.
It looks like our informal “maze” is morphing into a conglomerate. Li’s pledging of LQMT and EONTEC’s shares was his “buy in” to negotiate a bigger piece of the resultant pie.
I don’t buy the part about LQMT and Apple collaboration was limited to alloy development...the materials side is the most straightforward part of the technology. You create a mix of elements with a range of atomic radii that prevents the individual atoms from getting close enough to form a crystalline structure...it’s all in the math.
The real technology is in the process once you know the math...there are lots of ways to get there on the materials side....just look at the range of elements cited in the composition patents.
Li will be selling generic machines but I imagine each buyer will develop their own approaches to increase throughput by altering the input and output robotics. Subtle things like temperature cycling and die porting all contribute to throughput and quality of the final product. The list goes on and on....none of the technical “know how” is published.
You are correct in that the composition is relatively easy to determine but the process parameters are key to building an acceptable product. The machines are modified from “stock” configuration and everything related to actually producing a product is a closely guarded trade secret