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Researchers create liquid metal heartbeat:
"In a breakthrough discovery, University of Wollongong (UOW) researchers have created a "heartbeat" effect in liquid metal, causing the metal to pulse rhythmically in a manner similar to a beating heart."
https://phys.org/news/2018-07-science-fiction-fact-liquid-metal.html
Can make October come sooner?
Not sure what Paul's new venture is, but I know the Pacific North West is famous for Totem Poles. Just saying....
I finally figured this all out.
After re-reading all the information I was able to gather, I now know what Lugee’s up to.
First, Lugee spends (pick one):
1) $64 million of his own money
2) $64 million given to him by the Chinese Government
to acquire 46% of LQMT. Then he burns through over $20 million of those dollars on a new building, on new equipment, and on the cost of day to day operations, because he really doesn’t care a wink about LQMT, it’s shareholders, or the money that (pick one) was
1) intended to grow the company.
2) intended to be squandered from the get go.
In spite of his total lack of interest in LQMT, he is going to (pick one)
1) make a success out of the company and then merge it into Eontec.
2) lead the company into total bankruptcy when they run out of money in two or three years.
There is no doubt about it. Lugee is an absolute genius.
Interesting job ad
https://www.linkedin.com/jobs/view/754414544/
It tells me one of two things. Either Hauck was canned on the spot for some nefarious deed, or a very pressing, personal situation arose that Hauck had no control over. When an employee leaves on good terms, to fill a better job offer, he gives sufficient notice to allow his current employer time to get a replacement. So what ever the reason, Hauck did not decide to leave because he saw no future for LQMT. Either there was a personal crisis he had to deal with, or he got caught with his hands in the cookie jar, so to speak.
They bought "a building (that isn’t ready for manufacturing)"
The building they bought was, and is, ready for manufacturing. In fact, they are currently manufacturing parts in their new building: parts for Zyris, Martin Guitar, prototype parts for ConMed, and an as yet unidentified MIM part for an as yet unnamed company.
According to Bromage, the amount of power they have, without the power upgrade, is not limiting anything they are doing now. The upgrade is for planned future business. (How many 40,000 sq. ft. buildings come equipped with 4,000A service? That's an extraordinary amount of power. )
It's important to stick to facts.
Keep up the good work. When I’m down on the company, I get high on your posts. Thank you!
You nailed it, Eagle. To sum up LQMT, it’s an addictive enigma wrapped inside a conundrum.
Thanks. I'm long and strong too. But I've been invested in LQMT to too long to get excited about speculation (even though it is fun to speculate).
Excellent point, DMN. The best one yet!
I almost hate to ask this question:
According to most of you, LQMT is a company that is going to make tons of money in CE. So why is it that LQMT never mentions CE in any of their marketing tools?
CE is not mentioned in the Design Guide. CE is not mentioned on the LQMT website. The only uses they mention for LQMT's alloys and processes are Automotive, Medical/Dental, Industrial, and Sporting Equipment.
I'm certain that both Apple and Eontec will use BMGs in CE. But I do not see any objective evidence to support the notion that LQMT will get into the CE game. The so called "evidence" presented here, favoring a role for LQMT in CE, is all indirect and speculative. At the same time, I see objective evidence (in the MTA) pointing to the fact that LQMT will not be a player in CE; and I see objective evidence that the company is not even attempting to get into CE part manufacturing based on their website and their Design Guide.
The MTA has no expiration date.
Where did the notion come from that the MTA between Apple and LQMT has a termination date? The only time limited agreements that I know of, included as an attachment to the MTA, is the APPLE – LMT TECHNOLOGY DEVELOPMENT AGREEMENT. That agreement had an initial term of 3 years, with the option of being renewed annually "at Apple's sole option, for successive one-year terms." But the MTA itself has no termination date.
This is what the MTA says about Termination of the MTA itself:
_________
14. Term, Termination and Suspension of Performance.
(a)
The term of this Agreement shall commence on the date hereof and shall continue until terminated pursuant to Section 14(b).
b) Prior to the Closing Date (if different from the date of this Agreement), this Agreement may only be terminated as provided in this Section 14(b):
(i) Apple or LMT may terminate this Agreement by notice to the other party if, in the case of Apple, LMT, LMC or LMT-SPE is in material breach, and in the case of LMT, Apple is in material breach of this Agreement or any other Transaction Document unless the defaulting party cures such breach and all effects thereof within five (5) days of its receipt of notice thereof from the non-defaulting party.
(ii) Apple may terminate this Agreement by notice to LMT if Apple has reasonably determined that the conditions set forth in Section 9(d) are unlikely to be satisfied on or before August 31, 2010.
(c) Termination of this Agreement by Apple pursuant to Section 14(b) shall not relieve LMT, LMC and LMT-SPE of their liabilities or obligations to Apple incurred prior to such termination.
(d) The non-defaulting parties shall be entitled to exercise all remedies available at law and in equity, in addition to the remedies set forth in this Agreement and the other Transaction Documents, for a breach by any party of this Agreement or another Transaction Document.
(e) LMT acknowledges and agrees that Apple will be unable to quantify all direct, indirect, consequential and special damages which Apple may incur as a result of (i) any breach by LMT of Section 1(b), 1(c), 2(b) or 8 of this Agreement or (ii) any breach of Section 1(d), 4(c), 4(f), 4(h), 8(g), 8(h), 9(f), 10, 11 or 13 of this Agreement, provided that if a breach in this clause (ii) is capable of cure and LMT has promptly initiated actions to cure such breach and has vigorously and continuously undertaken to cure such breach, such breach shall not have been cured within thirty (30) days of LMT learning thereof and, in the case of a breach listed in clause (i) or (ii), such breach could reasonably be expected to have a material adverse effect on Apple's rights under the Apple License Agreement (any such breach being a "LMT Fundamental Breach").
(f) LMT-SPE acknowledges and agrees that Apple will be unable to quantify all direct, indirect, consequential and special damages which Apple may incur as a result of (i) any breach by LMT-SPE of Section 3(b) of this Agreement or (ii) any breach of Section 5(a), 5(c), 5(d) or 6 of this Agreement or Section 4.3 of the Apple License Agreement, provided that if a breach in this clause (ii) is capable of cure and LMT has promptly initiated actions to cure such breach and has vigorously and continuously undertaken to cure such breach, such breach shall not have been cured within thirty (30) days of LMT learning thereof and, in the case of a breach listed in clause (i) or (ii), such breach could reasonably be expected to have a material adverse effect on Apple's rights under the Apple License Agreement (any such breach being a "LMT-SPE Fundamental Breach").
(g) LMT and LMT-SPE each agrees that the minimum amount of any such damages to which Apple shall be entitled, in the case of LMT upon the occurrence of a LMT Fundamental Breach and, in the case of LMT-SPE, upon the occurrence of a LMT-SPE Fundamental Breach shall be all amounts paid by Apple to or on behalf of LMT, LMC and LMT-SPE pursuant to all Transaction Documents plus interest thereon from the date of such payment until the date on which Apple recovers payment in full of from the defaulting LMT party all damages hereunder and under the other Transaction Documents at a rate per annum equal to the greater of (i) 10% or (ii) "prime rate" as reported in The Wall Street Journal in effect from time to time plus two percent. Apple may prove the minimum amount of damages set forth in this Section 14(f) by entering this Agreement into evidence in any action brought under this Agreement or the other Transaction Documents or in connection with the exercise of its rights under the security agreements delivered pursuant to Section 9(d)(vi) and (vii).
Thanks for that correction! I appreciate learning things I didn't know before.
As I've said a few times, I'm rooting for you. I hope you are correct. (I just don't think so at this point in time.)
You are correct, to a limited extent only. MMs make their money on a small spread in the buy / sell price. MMs buy shares for their own account. Once they receive a bid from a willing buyer, they may or may not sell, depending on the bid price. But if they do sell, they sell shares that they have already purchased for their own account. I.e., you do not buy shares directly from the original seller. You buy shares that were previously purchased by a MM.
How many shares to buy, if any, and at what price, is a key decision that all MMs have to make. But no one forces a MM to buy shares of anything. Stating otherwise is simply not true.
https://www.investopedia.com/terms/m/marketmaker.asp#ixzz5K7vFPcXB
You are going to love this true story.
When I first met Tom Steipp (at the ASHM in 2013) someone asked him if LQMT will ever benefit from the CE market and will LQMT and Apple ever work together? He smiled, in a very coy manner, and after a 4 or 5 second delay he said, "if I tell you, I'd have to kill you." And then he laughed. But the way that brief episode played out... the way in which Tom responded to the question... left me with the distinct feeling that, in spite of all the public denials, there was some sort of secret deal between LQMT and Apple.
My interpretation of that encounter could be entirely wrong. But the feeling I got has stayed with me for almost 5 years now. So maybe Apple will work through LQMT. Maybe they will advertise the Liquidmetal name. I really don't know.
Rooting for "the opposite team" is an odd position to be in. Nevertheless less, I really hope Joshuaeyu and BBoy are right and that I am proven wrong.
OLED stands for organic light-emitting diode. It is Not a brand name. It is analogous to BMG (bulk amorphous alloy).
Watts is absolutely correct. Apple does not advertise the brand name of other companies (except in the rare cases I referred to in my earlier post.
Excellent points! I just have a few questions.
If Apple uses the Eontec formula, do you think they will advertise Eontec by mentioning its name?
If Apple uses the LQMT/Apple formula, do you think they will advertise Liquidmetal by mentioning its name?
Correct me if I am wrong, but I do not recall Apple ever advertising another company by including that company's logo in any Apple ad. On occasion, they mention the name of a very prominent company (such as Intel), but for the most part, one has no way of knowing who makes or designed most of the components in any Apple product.
Apple might mention "Metallic Glass" or "Amorphous Metal," or may come up with their own name. But I wouldn't expect Apple to use the LQMT logo (or even mention the name Liquidmetal) even if they had the right to use it. It's not how Apple does business.
Besides, what kind of marketing advantage would Apple get by including the name of either Eontec or Liquidmetal in their ads? Unlike Intel, neither of those company names are known to the general public.
Every share sold has to be sold to a willing buyer. So if every common shareholder sold, all it would do is drive the price down markedly (maybe back to the all time low of 5 cents), and those that bought those very cheap shares would make a huge ROI once the company becomes profitable.
It wouldn't effect Li in any case. His shares cannot be sold for several more years. (I forget the restrictions placed on them.) Of course, if the company eventually goes belly up, he loses his investment. But I don't see LQMT going bankrupt. (Others will no doubt disagree.)
BTW, those with large holdings should understand that it is self-defeating to unload very large amounts of stock all at once, via conventional sales (bis/ask) through a brokerage house. Doing so will certainly drive down the price, and do so rapidly. It is far better to unload large amounts of stock over a period of time (days or weeks) via multiple sales. The extra cost in commissions will be a tiny fraction of what you'd lose by causing the stock price to crash as you sell.
I think that LQMT will become profitable (with or without CE) before Li's money runs out. At their current burn rate, there is enough cash on hand (according to the last 10-K) to keep operations going at least through the end of 2020 - even if they receive zero revenues between now and then (which is very unlikely, IMO).
Regardless, I'm in the same camp as Gamesc Whether or not I stay with this investment/gamble past the end of this year will depend entirely on what LQMT can accomplish THIS year. All the speculation, opinions, and chatter, both pro and con, doesn't mean a thing to me. The only thing that matters to me is revenue.
BBoy, my last word on this topic: I hope I am wrong and you are right. That would please me no end. I just don’t see it that way, is all. Time will tell.
You are correct. Under the existing agreements LQMT can use the Eontec alloys to get into the CE space. But since LQMT is much too small an operation to supply parts to Apple, they would need Eontec to back them up and manufacture the vast majority of those parts. So what you are proposing is that Eontec gives a middleman’s cut of the profit to LQMT for doing essentially nothing other than to line Li’s pockets. The Eontec shareholders would cut off Li’s you know whats if he did the deal you propose. So that is NOT going to happen.
The second question you raise is easy to answer. Why did Li spend $64 million if LQMT is not going to manufacture CE parts? Because while the CE market is huge (in terms of potential use of BMGs), the non-CE market is even larger. And Li wants to become the main player in both the CE and the non-CE markets.
That is correct. As I noted, Eontec is excluded from selling parts based in North America and in Europe that are based on LQMT’s patents. That limitation was placed upon Eontec by the Compay (i.e., by LQMT). However, Eontec is not restricted from selling parts in North America and in Europe that are based on Apple’s patents.
The fact that Apple’s patents and LQMT’s patents happen to be one in the same is a quirk; but that does not give LQMT the right to limit Apple’s use of their own patents in any way. If you read the rather one sided Master Transaction Agreement between Apple and LQMT, all restrictions in that agreement are placed on LQMT. Apple is not restricted in any way.
If one of the Chinese phone manufacturers used Eontec to make BMG parts using the LQMT patents, sales of those phones in NA and in Europe would theoretically have to go through LQMT. However, Apple would first have to approve the use of the LQMT alloys, because while Apple approved Eontec’s right to use some of LQMT’s patents, they did not sign off on all of LQMT’ patents, and the restrictions in the MTA would prevent Eontec from using LQMT patents in CE. It is Apple, and not LQMT or Eontec that controls the use of those patents in CE.
I know it’s a happy thought to believe that LQMT will make $$ from CE. I’d like... no... I’d love to believe that. I just do not see any way that can happen. LQMT gave up that venue when they sold the IP to Apple for a mere $20 million
Besides, for large parts, such as the mid frame (which has been talked to death here) Apple will most likely use Eontec’s alloy and not the Apple/LQMT alloy because the Eontec alloy is about 1/3rd to 1/2 the cost of the LQMT alloy. In which case, there will be no restriction on Eontec from selling their own alloy in Europe or in North America.
.
I agree. I think lqmt shares will gain from the publicity if any of those named cell phone manufacturers use amorphous metal alloys. It doesn’t have to be Apple usining their (lqmt) formula.
I know I’m in a tiny minority here, but I see no revenues going directly to lqmt from CE parts. I think Eontec will gain revenues from CE. I also think that, as a spinoff of BMGs use in cell phones, there will be a marked increase in the adoption of lqmt’s alloys in hundreds of non-CE applications. And it is the later that will result in huge revenues going to lqmt. (I just hope I live long enough to see it.)
I like the tag line: "this isn't a product yet, but they're a sign of things to come." That has a familiar ring to it. - Is Lenovo a subsidiary of LQMT, or do they just hire the same marketing agency?
Are you suggesting a suicide mission to destroy the company?
You are not an "angry old buzzard." You justifiably p'd off... like many of us are. But it is important to separate what we know to be fact (which is pitifully little) vs. what we conjure up and speculate about ad nauseam. With that in mind, I'd like to correct a few "facts."
1. Finding a building in the size range of ~40,000 sq. ft. that already has 4,000A service is (I'm guessing here) not very common. So I'm not surprised that the building was not so equipped at the time of purchase.
2. I'm also not surprised it is taking much longer to accomplish the upgrade than originally planned on. Anyone who has built their own home... or, better yet, who has contracted to re-vamp a commercial building... can easily understand the inordinate delays: first in getting permits, and then in hearing from the contractor that the job will take more time and more money to complete than in their original estimates. (I speak from sad experience.)
3. And this is the important part: if (a big IF, I grant you) we are to believe Bromage, the power upgrade is primarily for future business operations and has, of now, not effected any operations that is (supposedly) taking place at this time.
Well, I'm sure I speak for many when I say that we hope You become the next COO.
Sir, you, too, may be correct.
In fact, we have no definitive proof that the money was not given to Li via an alien people from a distant planet; who, as a first step in conquering the Earth, plan to take over LQMT. I read about such things every day in the National Enquirer, while on the checkout line at the local grocery store.
The real skinny on Paul Hauck
click on this link to read about Mr. Hauck .
There is evidence that the money is Li's.
1. Li sold millions of shares of Eontec Stock to get the money to buy LQMT Shares. (Do your own Google search. I'm not going to make this easy for you to confirm.)
2. Li was suppose to transfer the cash within a couple of months after signing the original agreement with LQMT, but he had trouble getting the money out of China. That delay was so long that the original agreement between Li and LQMT had to be amended. (You can check the old SEC filings to confirm that.) It took him about 6-8 months to get the money out of China. In fact, Some of the posts at that time expressed concern that he might not be able to get the money out of China and the deal to buy 46% of LQMT would fall through.
If The Chinese government provided the cash, Li would not have had to sell Eontec shares to acquire the capital to buy LQMT stock, and getting the money out of China would not have been delayed for more than half a year.
It could also be that he was good for the company (as Bromage indicted) and that it is also good that he is leaving, so that fresh ideas can enter the sales arm of the company.
We are all looooooooong on opinion and short on meaningful facts. (Although we can not be blamed for the later.)
That's an interesting observation.
As the saying goes, "in the valley of the blind, the one-eyed man is king." Before Lugee, only one-eyed men ran the company. They lacked the backgrounds to judge the performance of some of their key people in sales and in engineering. After all, BMG manufacturing is cutting edge and very high tech. Before Lugee, the folks running the company had varied backgrounds: one a venture capitalist, and one an electrical engineering (in the pre-transistor era). With Lugee as CEO, given his experience and accomplishments, employees have to perform for real .
Of course, that's only speculation on my part and I do not mean to malign anyone... but I find it interesting that we are both thinking along the same lines.
I’m right there with you, brother.
Li did not make a mistake. Unlike us, guys like Li do not buy on a whim. They hire big guns to perform real DD and pay a room full of accountants to value the business at the time of purchase and to project its value going forward into the future.
Buying a $.25 stock at an average pps $.15 is pretty slick in my book. In any case, it is very likely that there would no longer be a LQMT by now if Li did not invest $64 million in the company. The old Board of Directors didn't approve the deal with Li because they liked his smile. They needed his cash to stay afloat, and they needed his expertise and contacts if LQMT was to have any real chance of success.
A penny stock is a hope and dream wishing well. And when the hope and dreams fail to materialize, who do we blame? Ourselves, for sinking more money into the well than we should have? Or do we blame the people who manage (or mis-manage) the company we "invested" in?
That price, .2240 is in Euros and equates to $.26... which is up 6% from yesterday’s close.
We’ll see what happens later today, but those that regret not selling more shares yesterday, and those predicting a crash today, are likely to be singing a different tune by days end. - We’ll see......
Great post, Gumby. That is a prime example of the superiority of due diligence over knee jerk complaints. Many of us are thankful to you for putting the power upgrade into perspective.