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My prediction for the Second Quarter:
Games, I’ll see your $150k and raise you $27k. Professor Li assumes role as VP of Worldwide Sales (in addition to serving as Chairman and CEO). Bromage announces there is no longer a need for the public utility to bring in additional power because TESLA will supply their power needs via large battery packs.
Since Otis doesn’t do anything, except to occasionally mess up a PR, no one even knows he’s there. So his position is safe.
I do enjoy reading your posts. By in large, I share your optimism. However, as far as “the disruptive nature of the material” goes, the only thing it has been disrupting lately is the ability to get a good night’s sleep.
Question for the general audience:
Does anyone really care about what is or isn’t happening at Eontec? With all due respect to the honest and well meaning Eontec reporters, I get the feeling that I am being shiiled by all the “promising” Eontec posts. And in the last “analytic” article about Eontec ... the one that had a picture of many company logos... I couldn’t help noticing that the logo for LQMT was no where to be seen: just like our Chairman and CEO.
That’s the problem, isn’t it?!
Interesting read. Thank you.
Yes. That’s crazy.
It has to be an error, because LQMT no longer has class B stock, and as far as I know, it never issued class C stock. Both B and C are mentioned in the filing.
So why has it taken so long to correct the filing? I don’t know and I don’t care. My issue is why has it taken so long to make a significant sale? Then again, I can see a relationship between the two issues.
The comparison between BMGs and plastics is not asinine. It’s hyperbole. Often left out of the comparison is that it took about 50 years from the time plastics were invented until they started to gain wide spread use. BMGs were invented about 25 - 30 years ago, so that means....
No need to translate article into English. Just look at the pictures and the message becomes obvious: “the new iPhone, with liquidmetal case, fits comfortably inside a bra.”
???
Understood. Thank you. Still, it's a worth while subject, and going through those facts from time to time helps to remind me why I am still in this company.
Not true.
In the first place, there is nothing “obvious” about this company. But on a serious note, LQMT has a few significant obstacles to overcome.
1) It’s a new technology, largely unproven “in the field.” Passing a series of nternal tests is not a substitute for performance in actual large scale use.
2) Until Lugee capitalized the company two years ago, they were always only one year away from bankruptcy. Why would a major company want to sign a contract with an unproven company that was always on the verge of going out of business?
3) They had a business model that changed over time and which lacked a clear direction. I.e., they went from a company (under Kang) that wanted to do it all - from designing the part to manufacturing the part to selling the part - to a company (under Steipp) with a bizarre licensing scheme in which customers, or approved, designated manufacturers, would shell out their own money to buy machines to manufacture the parts.
4) Prior to Lugee and the manufacturing back up via Eontec, LQMT was unable to overcome the “sole source” conundrum. Large customers do not like to rely on a single supplier of a vital component.
5) They have a history of screwing customers (the SAFILO fiasco) and also of over promising and under delivering. (I’m not at liberty to expand.)
So while your point is well taken (that cost is an important factor), it’s not the only thing to be considered before a potential customer takes a chance on using a new material from an unproven company.
If there are not going to be traditional ASHMs, what makes you think Li will be there to entertain questions?
I hope you will, too. Good luck to us all.
Looking for actual numbers regarding the cost of materials misses the whole point of this company’s existence. Anyone interested in investeing in this company should understand the principle and benefits of “near net shape” molding of metals before buying a single share. It is that principle upon which this company was founded. Near net shape molding significantly reduces labor cost to produce a part, while maintaining very tight tolerances and keeping waste of material used down to a minimum. (Apple has a video showing how they CNC their notebook computers. There is a huge amount of wasted aluminum during the CNC process.)
There are additional benefits to using the alloys vs crystalline metals based on the strength, elasticity and corrosion resistance of the alloys. But it is the near net shape molding that is the reason this company is bound to succeed. So don’t look at the cost of materials alone. The key number to look at is the final cost to produce the finished part.
They might have sent the notice out early, by mistake, and then canceled the link. If so, we’ll see a PR after the market closes today.
Good point! I didn't consider that. Thanks.
Also, as I just amended my previous post: if the 2 tons of alloy are enough to secure a contract with a major auto maker for future parts (in 2019), then that recent shipment will pay off big time.
As always, I appreciate your input. But substituting "medical grade" liquidmetal for titanium may require no more paper work or hoop jumping than substituting "industrial grade" liquidmetal for titanium. The medical grade alloy has passed LQMT conducted tests. But I do not recall reading that the FDA has formally approved its use in humans. If the FDA has not formally approved its use, then substitution by “similarity” would apply equally to either formulation of the alloy.
As for last year's shipments of industrial grade alloys: 1) IIRC, it amounted to about half the latest shipment. So if even if they haven't already used up the 2017 shipment (which is highly unlikely) we are still only looking at a few hundred thousand in revenues from the combined shipments. 2) We do not know what parts were made with the 2017 shipment. Perhaps it was used for prototype auto parts. But it also might have been used to make the Isolite 3 part. We simply do not know with any degree of certainty.
Steipp once told me that with just 2 machines, operating 24/7, they could reach break even (~$8M/year). But if all they are working on this year are production parts made from the 4,000 lb. of alloy recently received from China, revenues for this year won't even come close to $1 million. They would need 10 times that amount of alloy before they start to bring in significant revenues.
If the 2 tons of alloy are enough to secure a contract with a major auto maker for future parts (in 2019), then that recent shipment will pay off big time.
Let's hope they have been receiving many more tons of medical grade alloy from Materion. Shipments from Materion are not nearly as easy to trace as are shipments from China.
You are correct, once again.
Questions about the 4,000 lb. shipment of alloy:
1) First and foremost, how much revenue could come from 4,000 lb. of alloy parts? If each part weighs only 1 ounce (28 grams), and there is absolutely zero waste during the manufacturing process, than 4,000 lb. of alloy will yield only 64,000 parts. I don't see LQMT making a few million $$ on 64,000 small parts. Even if the part weighs only 1/2 oz. (14 gm), that = 128,000 parts. - And I'm addressing gross revenue, not net profit. So as I see it, 4,000 lb. of alloy feed stock is a relatively small order.
2) Do we know for certain that the shipment is not for medical use? Zyris uses BMG alloy for part of the external case of their Isolite 3 device. They may be able to use the less expensive industrial formula from Eontec as that part of the case is not in contact with the patient.
There are potential legal consequences when publicly stating negatives about former employees.
(Ever wonder how an incompetent doctor gets privileges at hospital B after being “encouraged” to move out of town by the staff at hospital A?)
Well said.
It’s good to read rational, well thought out assessments.
Take 2 aspirins and call me in the morning.
There are many recreational golfers in the USA that do not adhere closely to the PGA rules. But the reason the original Liquidmetal gold clubs failed to gain traction was because of a design flaw. Many of those clubs broke at the hosel during regular play, and they quickly got a bad reputation.
The clubs have since been re-designed. I think the club face now has a liquidmetal insert rather than having the entire head made of the amorphous metal. And maybe the bad reputation has been forgotten.
217 Beneficial owners
Surgeons who are musically inclined use guitar bridge pins instead of bone screws.
Quite a sitemap indeed. You name the part, and even if it hasn't been invented yet, Shenzhen LMS Technology makes it out of amorphous metal.
I do not believe his numbers. He is the owner-author of that site. There is no way to verify anything stated on that web page.
The number of errors he makes in his blog speaks volumes. I’ve posted corrections to his blog, but he has never allowed my posts to get published and he has never corrected the errors. What does that tell you?
Is this the J. Bond we all love and respect?
check out the bottom half of this page
It’s more evidence that they are not sitting on their hands, but are working hard to get the company off the ground. They can’t force other companies to become customers, but the more offerings they have, the greater is their chance of success.
I was thinking of bringing Li before Judge Judy.
Sounds like a pump and dump in the making.
Very insightful. Thank you. Let’s check it in 30 days. (BTW, the historic low was $.05.)
That’s exactly what I noted in my follow up post.
Me too, Tomcat. I worry about the same thing.
BTW, the liquid metal in the article refers to gallium heated to its melting point: not to amorphous metals. But you never know. LQMT may yet find its much need application.
I've no idea regarding what's going to happen in October. It's just that two recent posts infer that the stock price will go up in October; and I believe everything I read here.