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]Patents....be carefull about valuing the patents too highly...three quarters of all patents ( not just ours) are not worth the paper they are written on.
I spent a career learning from and circumventing the patents of others. Most are too narrow and relatively easy to work around for someone familiar with the technology.
The important technology is held as trade secrets and never gets published.
Income streams....what about licensing various domestic producers for their own use? It appears that the broad commercialization will begin in China but the technology will be eventually be adopted in the US and at least some will want to make product in house...I see an opportunity to share expertise for a price.
Eontec finished at 40 million shares...that’s in excess of $80 million of turnover. Float is 300 million so >10% of float.
Changzhou Liquidmetal was capitalized with ¥20 million which works out to $3 million US. They say all the fight words and have great vision but they are small. The release also says the building is ??7000 m^2 which works out to 70,000 square feet which is larger than LQMT-LF.
the way the accounting works is pay your suppliers in 60-75 days and expect your customer to pay you in 30 or less to minimize working capital necessary. Big companies always pay late.
I hope your numbers prove to be accurate but unfortunately they seem optimistic to me. I think another quarter or two before the benefit gets to us....our share will happen only after Eontec gets paid and the accounting magic happens.
Dr Strangelove was the Slim Pickens reference.
In the last 23 trading days Eontec stock has appreciated from about ¥8 to.¥13.14....about 65%. If the trickle down is to work, Eontec has to be extremely successful so that LQMT can be just successful.
Still pulling for Eontec to hit ¥25 in the next 3 weeks.
Someone mentioned that Lqmt has 6 machines....did I miss something.? I know of 2 Engel BMG machines, 1 Eontec BMG machine and 1 Eontec MIM machine. Are there 4 or 6?
I really want Eontec to zoom to 25¥ over the next few weeks....that would tell me that something big is in the wind.
Maybe someone here should buy the machines for $100k each and redo the electrics and sell them in Europe out of Engels parking lot for $200k instead of the current $360k. Then again maybe Engel could do it themselves. So many possibilities!
Selling the machines requires additional labor/time to implement. I’m sure there are customized features that LQMT is unwilling to share so the machines need to be returned to their original “stock from Engel” configuration. Ideally, Apple will be picking them up for their R&D at bargain prices.
Labor is an important consideration...BMG machine technicians do not grow on trees so I would expect the purchaser of the machines to be in the market for experienced operators....it could almost be a “package deal”. Follow the machines or follow the operators...could be interesting
The assets are still sitting there and were valued at the initial equipment cost plus the transportation, installation and all the LQMT hours associated with the installation/start-up. The new value on the books is a zero cost basis which does reflect a decrease in the (inflated) book value of the asset. Some of that value was non tangible (labor etc) and some is tangible (machines). Obviously, we can only sell that which is tangible.
An impairment charge adjustment is a “non cash” transaction that really doesn’t affect the real value of the company....it’s all in your head. It sounds like the write down of the 2 Engel machines which includes the initial cost and every cent of installation spent to make them operational. They have written them to zero value and when they get “something” for them, it would be 100% profit and drop to the bottom line. It’s an accounting maneuver.
Just reread the SEC filing from 7/10/19 and one part jumps out....”The company intends to dispose of equipment that is not expected to be utilized prospectively, lease the Company’s operating facility to a commercial tenant...”
To me, this says sell the Engel machines (they have no counterpart in China) keep the 2 Eontec machines since they are similar to those in China. Also keep the sintering oven and QA equipment to support prototyping.
The part about “leasing the operating facility”. Carefully worded to exclude office etc...Are they planning to partition the facility and lease out 2/3 or they plan to relocate the prototyping machines (not probable).
Raises more questions than it answers.
Headcount confusion...I’ve seen headcount numbers in the high 30’s quite recently and I’ve heard that the 10Q has a figure of 25 also recently....so the question relates to potential “contract workers” in the higher number. There is a current headcount number floating around of 15. Did the press release a indicate an actual number or did it give the reduction and we did the math?
If they stripped out the contract workers and temps, it would make a big difference concerning the viability of the enterprise. You need the technical folks to support the sales prospecting and facilitation of prototypes all the way from China.
Eontec on the move. Shares outstanding 400 million less 132 million for prof Li makes 270 float. Yesterday volume was 30 million or 10% of float. It’s warming up.
Eontec on the move. Shares outstanding 400 million less 132 million for prof Li makes 270 float. Yesterday volume was 30 million or 10% of float. It’s warming up.
The building is irrelevant..the number of machines is way more important. A major manufacturer would have 20-50 machines and possess uniform capabilities to deal with volume. This location has 4 machines with no duplicates and was clearly built to showcase the technology and not respond to high volume manufacturing.
Down 14% on 4x average daily volume but the 3.8 million shares is still less than 1% of the float. Not a stampede by any means.
Congratulations to Professor Li for recognizing the fact that LF was at least an order of magnitude too small to ever be a major manufacturer. From the beginning, it was never had the scale or mindset to play that role. I applaud him for biting the bullet and addressing the need for change while still keeping a presence in the US. Now they can proceed with their role of pilot prototyping and market development without the distraction of trying to build a major manufacturing facility that they don’t know how to manage.
Professor Li will not flush $60 million...it’s too big a hit. It would have been easy to stay on the previous course until the money ran out. Now the work begins!
Eontec’s recent price movement has been erratically up and I see Eontec leading any future price rise in LQMT. When Eontec shoots from 10 to 15 yuan, we will be on our way.
Eontec up 10% in first 10 minutes.
Something in the wind....
The controlling shareholder in this reference is Lugee Li and this was the initial announcement of Eontec getting additional financing to expand its BMG manufacturing capability. The article stated “up to $80 million” or 17% but the final amount was more like $55 million and 11%. Lugee Li still owns about 135million shares with a percent in the low 30’s.
The Chinese government entity owns 10.83% of Eontec....hardly a controlling interest when Lugee Li has more than 30%.
Think outside the box...when BB said we plan to explore new directions to take LQMT what about a JV with Foxconn. LQMTNA could be the BMG Research/Process Development part of the new technology manufacturing facility in Wisconsin. Move our whole operation to WI....Foxconn could buy the machines and we could be their captive resource. Use their deep pockets...Don’t think fruit company would object as long as their secrets don’t leak to Chinese competitors (same problem as being in China).. Needs blessing from fruit company but it would get this thing going.
$80k drops the stock price almost 10%,,”.
If a single entity owns 45% of the company and they don’t want to be bought out,..it can’t happen. Look at it this way...He is trapped too. He has $62 million invested in a company with an unmarketable stock.
Restated he has $150 million USD in Eontec which has recently dropped 30% and $47 million in LQMT which is also down by 30% +/-. Think your day is going badly...he is down $60 million....and neither can be liquidated.
What makes you think that any company in their right mind would share information that could be beneficial to their competitators? They disclosed that an agreement exists and that is all they have to do. Why does everyone on this board feel that they should be privy to the intimate details? I worked for a “stealth” company and we didn’t patent any of our technology...everything was a trade secret, our customer lists had the highest level of security and we sued ex-employees to protect it. All employees were bound by confidentially agreement and the were enforced at a level that could ruin your future prospects if you violated them.
They are not going to share...get used to it.
Yes ...it was a NYSE company.
When I made the comment about the 4000amp service being too large for a sintering machine, I was hoping for an additional 6 machines for moulding amorphous metals. That sort of announcement would be significant since it infers anticipated volume consistent with the power expansion. Getting the power would probably be the longest lead time item, followed by staffing, followed by machine delivery..
Just dreaming.
By the way, a 4000 amp electrical upgrade is probably 10x the requirements for a sintering machine.
The review seems very positive but I thought I was reading an opinion of a $100 bottle of wine.
This technology is very difficult to sell through the technical channel and even if you catch the imagination of the engineers...they aren’t the key decision makers. The Marketing Department wants features they can promote or maybe a price advantage whereas the Fnance guys want to know whether margins will improve and few people will bet their jobs on the possibility of some incremental benefit that may not materialize.
Finding an organization willing to take the risk (personal and professional) is the rub. Tesla that’s one.
I used to think that MIM was a competitor but now that I understand the limitations of MIM, I now know BMG and MIM address entirely different market needs. MIM is flawed by the inherent shrinkage that goes with the sintering process. When dimensions change more than 10%, it’s impossible to make a truly precision part. With BMG, you machine a die and you get a part that reflects the die exactly..
If MIM represents a technology jump from subtractive metal machining, BMG moulding is a quantum leap beyond.
I’m not addressing anything about LQMT, I’m referring to the adoption rate for the technology itself. We don’t have to dominate BMG with a 90% share (that would take too long) but a 10-15% share of a really big market would be fine. This won’t take off until there are many champions pushing the technology.
CE started with a SIMM card extraction tool and now it seems to be showing up throughout many phones in all sorts of configurations....nobody anticipated the hinge but somehow there it is.
The worldwide growth of BMG is growing exponentially and it only is expanding in the area of new applications/parts. It is too expensive to change the manufacturing method for existing parts and the benefits are less obvious. It’s only considered for next generation developments. This is going to take patience.
The life cycle for Consumer Electronics is 18 months.....a car a few years....a pacemaker perhaps 5-6 years so everything is on a different schedule.
Excellent point about Apple still having some skin in this game!
WOW....300k shares moves the price 10.5%.....Hey its only $38k in real money. Planning an exit is very critical step in getting your best price.
The horse is still alive...beat him again!
Www.marketscreener.com lists the major stockholders of EONTECH as....
Young Tak Li,,,,,,,,,,135 million shares.................33.5%
Zhuzhou State Owned......45 million shares..........11.2%.
+ no other significant shareholders