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Good answer. Same here.
Viable option based on feedback from developers.
Nitinol has been used to make intravascular stents for at least 25 years... and Medtronic is still searching for other uses for the material. (The heart valve is based on the design and properties of the original nitinol stents.)
It is not unusual for new materials to take a looooong time before they find applications that make them commercially viable. Liquidmetal has also been searching for a commercially viable application for about 25 years. In that sense, the two stories are analogous.
Everything has a way of finding its true value
Even better!
thoughts on the huge option gift to Bruce
As Joshuaeyu so aptly stated, rumor squeaks and action speaks. And in regards to the employment contracts and option awards, Lugee has already spoken.
(Lugee’s stated policy is that compensation is based on performance.)
Employment contracts: a win for company, employees, shareholders.
Company wins: it keeps two valuable top executives.
Bromage and Van win: they keep good paying jobs with a built in, performance based, bonus incentive package.
Shareholders win: the employment contracts (and Bromage’s big option grant) indicate that those two employees have been productive over the last year (at least), and shareholders will soon reap the benefits of their productivity.
The writing is on the wall.
They have to produce something of substance in 2019 or the party is over.
You raise a few good points. But I would remind you that back in 2010, shorty before Apple bought rights to the patents, the stock was selling for 5 cents a share and trading volume was considerably less than it is these days. And then, as word got out - way before the details of the MTA were published - the stock price went from 5 cents to $1.74 in just 3 weeks... and trading volume hit new record highs.
There are a lot of people watching this stock, waiting for news of a high revenue producing contract. The low volume and sagging price doesn’t reflect lack of interest. It represents the activity of day traders. Tea leafs aside, one significant contract and both the trading volume and price will soar in a matter of days.
Chung hasn’t bought any shares for a long time. His recent “acquisition” came via a grant of stock options (which was awarded to all Board members). He did not purchase any shares. In fact, Chung’s last move was his sale of over 2 million shares in 2017, when he moved back to Korea. So how would you amend your advice to fit the current situation?
Bromage's performance led to his extraordinary options award.
You will recall that in the Steipp era, cash bonuses and options were handed out like candy. Lugee put a stop to that in 2017.
From the most recent 10K: Bromage received NO cash bonus in 2017 and was awarded only $45,000 worth of stock options in 2017. He just received $560,000 worth of stock options (at $.14 ea.). That is one heck of an increase. So either Lugee changed his mind about executive compensation, or didn't remember what he previously announced regarding executive compensation, or Bromage accomplished something worth an award more than 12 times the award he received last year.
I agree with much of what you wrote, with one major exception.
Lugee, unlike his predecessor, no longer hands out bonuses of any kind to the executives unless they’ve earned it. So what did Bromage accomplish that earned him 4 million option shares?
A significant high volume, multi-year contract is coming.
Swatch is one of the companies that has a royalty/licensing arrangement with LQMT. The amount of revenue depends on how much alloy is used. There is another one... slips my mind at the moment. But the $$ involved is chump change.
You could be correct. But all they have to do is show revenues of just a few million a year to spike the share price. They do not have to reach profitability to get the stock to a dollar or more.
lack of urgency displayed by the company
Just guessing, but since It sold for $.44 on rumor and hope, when the company becomes profitable (~$8 million/year), it should sell for well over $2 a share. But even revenues of only a few million a year, from multi year contracts, rather than from one off orders, will get the price easily over a dollar. Multi year orders will scale revenues rapidly.
The one good thing about having next to no revenues is that the up side is enormous.
Must have been Li’s Twin brother at the meeting.
Prof Li purchased Liquid metal for two main reasons he told me. #1 over 125 patents...... #2 was the NAME . "LIQUIDMETAL
Nice find, Games. Thank you.
Good point, Hank.
Lugee bought the Company for several reasons.
Because of their woeful lack of $$ performance, and failure to land a substantial contract, we forget, or fail to appreciate, what the company has accomplished.
1) They have brand name recognition within the industry. — Lugee mentioned that several times. (Not sure if he said that in public forums or in answers to my emailed questions.) So that’s one reason he bought in. He wanted to own the brand name.
2) They have a substantial number of patents. Li wants access to the CIP locker room.
3) LQMT has gained valuable expertise in the field. That’s worth a lot as well.
There’s one thing for sure, Li didn’t just pony up $64 million without a very good reasons for doing so.
That's really funny. Fortunately, hIs reputation precedes him. He's been banned by the SEC from serving on a Board of a public company and band from serving as an officer of any public company.
I love the part where he gives advice on how to run a startup when he, almost singlehandedly, ran 2 startups into the ground.
Thanks for the laughs, Yama.
Can't remember when quarterly earnings topped $250K, but Annual revenues should continue to go up from here, even without a major contract, because the power upgrade will be finished soon (finally) and will allow them to grow the MIM business. Without a major contract, annual revenues won't get into the millions, but the days of $55K quarters should be behind us now.
Looking forward to the Q4 in 2019.
if lqmt has patents that expire why would we worth anything
Your analysis is spot on. I don't expect much until they announce a significant contract or produce a quarterly report that shows revenues in the millions. General comments don't cut the mustard.
On the other hand, if revenues were $55K, like last time. the pps would probably be around 10 cents.
Lugee Li has never communicated such a black and white division...
I hope you're correct. I'd LOVE to be wrong on this issue. Even though I do not believe they are already heading towards CE, I'm certainly rooting for you to be right and for me to be wrong.
Q3: what a relief!
This all goes to show us that while we freely speculate one way or the other, none of us really knows what’s going on at the company. They keep secrets better than Apple does.
You could be 100% correct, amigo.
I see it differently. A single multi-year contract with a company like Medtronic or Ford will go a long way to get us to that magic $1 mark. Just look at the jump to $.44 as a result of the low volume Xyris contract. If a low volume contract from a company with no name recognition got us to $.44, a single high volume multi-year contract from a company whose brand is a common household name will certainly take us to $1. Two such contracts and we could easily go over $1.
I’m not saying LQMT will never get into the CE space. I think the chances are good that they will do so in the future... maybe 4 or 5 years out... maybe sooner. My point is that, as of now, LQMT is not pursuing CE. It’s up to Lugee, and as of the present moment, he is targeting CE as a major focus for his Asian companies and he’s targeting non-CE applications for his American company.
I’m focused on 2019. I see no concrete evidence that LQMT will be in the CE business next year. Yes, there is a lot of speculation concerning CE and LQMT, and folks quickly jump to conclusions based on inuendo (such as conflating Consumer Products with CE), but no one has posted any factual evidence to support the contention that LQMT is pursuing CE. However, if you have such evidence, I’d love to hear it and I’d be delighted to change my stance. .
Dream on. Consumer Products is a very general term. CE is a specific category of consumer products. CE was not mentioned because they are not going down that path YET. Bromage has been a straight shooter and doesn’t speak in code - as you imply.
I’m not saying that LQMT will never make CE parts. Never say never. I’m predicting that one or two large volume, yearly recurring orders will put us well over $1 long before this company produces its first CE part.
Great Post Yamasushi. It's worth reading at the start of every day!
I've spoken with Bryce a few times. I never got the impression that he's a "spin doctor," and I can't think of a single lie he's told.
Perhaps you have him mixed up with one of the old guard who's no longer on the team?
Hope and dreams are part of investing in a penny stock.
DMN, I share your sentiments. But even in light of all the positive hard facts you've mentioned, with each passing quarter it becomes more and more difficult to stay positive. I am beginning to wonder if I am still objective, or whether my decisions are now based on little more than hope and dreams.
Two thumbs up! Thank you for that information. When you stick to the facts, your posts are outstanding.
Great answer, Greedy.
You must be that Government lawyer I met, briefly at the OH... the guy with a goatee who was hovering around Prof. Li. Sorry we didn't get to chat.
“IF.” The key word. IF Apple was close to using the alloys and IF such projects were public knowledge, then what you say would be true. Both “ifs” would have to occur simultaneously. How often, in Apple’s history, have people found out what they were coming out with before Apple itself announced it? Almost never.
Time to get off the “if topics” and concentrate on what is. - Oh, I apologize. None of us know much about what really is happening, so there isn’t much to write about along those lines. So I’m going back to the ifs.
If I had as many shares of Apple as I have of LQMT I’d be set for life
If, on Monday, Apple announced they are using the alloys and are working through, or with, LQMT, the share price would be $2 by Friday. However, Apple owns the technology and they have the engineers on staff that are capable of anything that LQMT’s engineers are capable of. So why should Apple work through LQMT, and by doing so, introduce additional cost in the process?
But suppose Apple works with Eontec. How will revenues be passed through to LQMT? There is no mechanism for such a pass through. Remember, Lugee is no longer the principal owner of Eontec. The Eontec Board, (especially with the Chinese Government agency owning a large chunk of Eontec) will never allow such a thing to transpire.
CE for LQMT is a lovely dream. As such, I like it. But at this point in time, that’s all it is... a dream, supported by conjecture and myths, but without a single shred of evidence to support it.
Makes perfect sense to me.
"Yes officer, I know that the posted speed limit is 70mph, and I know that I was going 77. But my friend has a convincing argument that policemen have a secret agreement not to stop anyone for speeding unless they are going at least 10 miles an hour over the speed limit."
Equivalent reasoning: "Yes, I know LQMT's posted goals do not include CE, but my friend makes a good argument that they are secretly working behind the scenes to develop their CE business. Proof? No, he didn't provide any proof, exactly. But I don't need no stinkin' proof."
Makes perfect sense to me. - Not!