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There are thousands of LQMT shareholders who support this stock at a price point that one can not justify based on earnings alone. But iI I were Lugee, I would be much more concerned about the handful of complainers (some of whom don’t even own shares of LQMT) than I would be about the thousands of shareholders who do support him and his company. But that’s just me.
Li never said how long it would take to build value for LQMT shareholders. Let’s remember that he is, far and away, the BIGGEST shareholder in LQMT.
If there was a connection between the hype here and the share price of Eontec, the price of Eontec would be increasing, not decreasing. If Eontec shareholders believed the hype that the next iPhone or Apple Watch will contain Eontec produced BMG parts, the Eontec share price would be at least double it's current value. Seems to me that Eontec share holders are a lot smarter than our lot of hypesters.
The real reason Lugee bought LQMT.
After thinking about the expressed concerns of others regarding the possibility of ulterior motives that Lugee may have had in buying a controlling stake in LQMT, I can no longer dismiss those concerns out of hand.
China has been stealing our technology for decades without paying a penny for the information they’ve stolen. Is Lugee just another actor in that game? If so, he is very clever. Instead of just lifting the patents, for free, off of the US Patent Office website, he hides his intentions by paying $64M for the information. And then, to further disguise his real motives, he spends $20 on a new building and stocks it with new machines so that it looks like he really intends to make LQMT a successful company. Very clever, indeed. However, the pièce de résistance, came about when he VERY publicly connected the names of Eontec and LQMT… and this is the best part: he then publicly represents himself as the face of both companies to hundreds of potential customers, just to hide his secret plan! Imagine how happy those potential customers will be, here and abroad, when they discover how clever Lugee is. Imagine the trust they will have for Lugee and his Chinese companies, when Lugee finally reveals how clever he was in sinking LQMT and its shareholders!!!
Yes. The more I think about it, the more I marvel at how truly clever Lugee is.
The Liquidmetal name is registered with the USPO and the USTO.
Wise man would say that is stirring an empty tea cup.
We each know just about the same things. Because if we knew more, neither one of us would be reading these posts.
Where are all the machines?
The same goes for the Kangs. Both John and Sue owned several millions of shares, and for all I know, still do.
As far as Conmed being a customer...
Even though it's true that LQMT lists ConMed as a customer, it's important to note that there are two distinct types of customers. 1) There are customers who have ordered relatively few prototype parts - numbering only in the several hundreds to a few thousands - parts that undergo extensive testing anywhere from months to a year or more; and 2) there are customers who, after the completion of successful testing, sign a multi-year contract for regular production parts. Those contracts result in parts orders that will number in the many tens or hundreds of thousands (or more) parts each year. At this point in time, we do not know which type of customer relationships exists between ConMed and LQMT.
ConMed stated that "Liquidmetal hit every deliverable they committed to and enabled us to test our device in a clinical setting early in our development process." I'm sure you recall that Lockheed-Martin was once a customer (for missile canards) and worked with LQMT for about 3 years. In the end, they never went beyond the stage of being a customer that only ordered and tested prototype parts.
It's too soon too start celebrating. After all, if LQMT signed a contract with ConMed for full production parts, instead of just prototype parts, wouldn't we have seen a PR to that effect? Such news isn't likely to infringe on a NDA.
And your point is????
More on John Kang, former CEO:
John has an interesting history. You can google all about it if you want to read the details. In spite of the history, John's company, IMG, was granted a non-exclusive license by LQMT to use certain patents. That license was supposed to run through 2021 but was terminated in 2016.
From the 10-K filed 3/4/2015
The Company entered into a license agreement (the “IMG License Agreement”) with Innovative Materials Group, LLC (“IMG”), a California limited liability company which is majority owned by Mr. John Kang, a former Chief Executive Officer and former Chairman of the Company, to license certain patents and technical information for the limited purpose of manufacturing certain licensed products with the Company’s first generation die cast machines. The IMG License Agreement granted a non-exclusive license to certain product categories and obligated IMG to pay the Company a running royalty based on its sales of licensed products through the expiration of the license on August 5, 2021. We recognized $6 thousand and $8 thousand in royalty revenues from IMG during the years ended December 31, 2014 and December 31, 2013, respectively.
From the 10-K filed 3/10/17
The IMG License Agreement was terminated on March 8, 2016.
But like a wack-a-mole, you can't keep a good man down.
You are right, of course. Just having fun. Nothing personal or serious.
The boredom is getting to me.
I can sell you the shares I don't own... at a very reasonable price.
A 0.22% drop?! That does it for me. I’m selling all of my Eontec stock
(Wait a minute. I don’t own any Eontec stock.)
Thank you. Now all we need are contracts.
According to the recent 10-K, Paul owns 2,328,767 common shares. He also has a few million option shares that he can exercise in the future.
NO large institution or large company worth it's weight in salt is going to load up with millions of shares of a penny stock. Not sure why Wesbanco Bank is taking a flier on LQMT, but their holdings in LQMT are relatively small (for an institution) and certainly no where near the range you'd like to see (20 to 50 million shares). By the time Institutions, major investment houses, etc., acquire millions of shares of LQMT, the stock will be re-listed on a major exchange and the "hoped for" days of enormous gains will have passed.
Bond’s quote of the day:
Referring to Prof. Lugee Li, Bond writes,”I’d like to see how big his stick is.” Has that man no shame?
Thank you for the info. I'm psyched. I did see pictures of gears on their website and in presentation material. But until your recent post, I thought they were pictures of the older gears that they were having difficulty manufacturing. Nice to know they've gotten beyond the problems. You are 100% correct. High quality, long lasting gears have many, many applications.
BTW, so do springs. BMG springs are unique because to the elastic properties of the alloys. Like gears, springs are found in dozens and dozens of applications. Do you have any update along that line?
Thanks. For the most part, we are in synch.
Good call Watts. Your timing wasn’t off significantly.
So Watts your prediction for the end of this year... or there abouts?
Li didn’t buy the shares solely with his own money? Since Li is the sole owner of the holding company that owns the 405 million shares, his “good friends, family members and business associates” that gave him money to buy those shares are very trusting individuals indeed.
I can just hear it now. Li tells his fellow investors, “trust me. You do not need to own shares in your names. When I, I mean we, make a fortune out of this investment, I will pay all of you the handsome rewards you are expecting. I give you my word. What more do you need.”
Thank you that. It’s the best post of the year, hands down!
“I wish Li would at least let us know he is working to make the company something more than a good idea.” He already said so three ways from Sunday. Will repeating it yet again really make anyone feel better? We either believe him and stay in, or chalk him up to... whatever... and get out. Unless you have a better idea.
I’m right there with you. If they don’t make it in a year, it will be time to take my profits and move on... even if I make a lot less than I thought I would.
Nice job! Thank you.
While I lack the skill to trade on technicals, I do find long term charts are informative. As they say, "the trend is your friend."
A prediction from the past:
Not so proud. Having a large stake in this !@$#!! company has eroded the lining of my stomach more than once. It takes a pair to stay long... if you get my meaning.
Funny you should quote a follower of a Warren Buffett who makes his money on long term holds and not on active trading.
First few shares purchased in Nov. 2002. Glad it was just a few shares as they were $8 a share. Eight freakin’ dollars a share. I remember that a year or so later the priced dropped to $7, which precipitated an article in Barron’s predicting the stock would drop to $2 a share. So I sold most of what I had. - What I wouldn’t give to see $2 a share today! I’d be able to move next door to Trump’s place on Palm Beach.
A valid and poignant question. If I had foresight, and not just hindsight, I would have sold.
No doubt many have made a lot of $$ trading this stock. I wish them continued success. I invest for the long term and trade infrequently. It’s a different strategy, is all. One is not better than the other. Money can be made and lost regardless of which strategy one uses. Having bought a boatload of LQMT at 8 cents, I’ve done quite well so far. Still, if I knew how to trade successfully, I might be way ahead of where I am today. In the end, it’s best to stick to the strategy that works for us, and it is foolish to deride those who elect to use a strategy that differs from our own.
True. I’ve become too provincial in my thinking. - Thanks for the wake up call.
Medical devices that contact the body on a short term basis, such as the anvil of a surgical staple machine, scalpels, forceps, parts used in the production of endoscopes, etc., will not take long for FDA approval - and some of those devices may not even need FDA approval. But an implantable device (stents, joint prosthesis, etc.), made out of a new materials will take years before they are approved. So while implantable devices could certainly result in many millions of dollars in annual revenues for LQMT, we are not likely to see that happen for years to come.
Thank you for that reminder. You are correct. Saga has one. But I think VPC does as well. The canards made for Lockheed were manufactured by VPC using an Engel machine. At least that was the impression I got when I met with the former CEO a few years ago, - However, my memory may be faulty. .
Regardless of who is buying their 2nd Engel machine, it’s good news for us as it indicates that the use of LQMT’s alloys in commercial products is increasing.
Connecting dots: LQMT+VPC= big contract in near future?
From a recently published article (see below), we know that "an existing customer (not identified) is in negotiations to buy a second Liquidmetal machine." Who is that existing customer, and what are the implications?
It has to be a company that already owns one of those machines, if this is to be their second. That rules out LQMT, as they already own 2 machines. As far as I can tell, Eontec doesn't own any yet. The only other company that owns one of those Engel machines is VPC. They were the original contract manufacturer for LQMT and they acquired their machine in 2013.
Engel can only sell those machines to companies that are licensed by LQMT (see below); and while Visser Precession Cast (VPC) is a licensee, it's not clear from the agreement that they have the right to purchase additional machines without LQMT's permission (see below). But even if they can, it seems odd that VPC would have enough business making BMG parts to justify a second machine when LQMT - the company with all the design engineers - doesn't yet have that volume of business. So the questions are: 1) is VPC the unnamed company; and if it's not VPC, why has LQMT granted permission to place said machine in the hands of another competitor? The reason is certainly not to make a few thousand dollars on a royalty fee from Engel. So is VPC (or some other unnamed company) and LQMT planning a joint manufacturing venture to fill an up and coming large order? - I don't know, but it's an interesting speculation.
Citations:
Engle statement about selling a 'second" machine
http://www.themoldingblog.com/2018/05/08/engel-execs-describe-liquidmetal-commercialization-as-slow-and-challenging/
From the 10-Q. filed 3/5/2015 https://liquidmetal.gcs-web.com/node/10786/html
1) "On December 6, 2013, the companies [LQMT & Engel] entered into an Exclusive License Agreement for a 10 year term whereby Engel was granted an exclusive license to manufacture and sell injection molding machines to the Company’s licensees in exchange for certain royalties to be paid by Engel to the Company based on a percentage of the net sales price of such injection molding machines."
2) "Under the amended and restated sublicense agreement, the Company [LQMT] has granted to Visser a fully paid-up, royalty-free, irrevocable, perpetual, worldwide, non-transferable, nonexclusive sublicense to all of the Company’s intellectual property developed on or prior to May 20, 2014"
Hang in there yama. Lugee said, “The liquid metal product market is huge,” They are getting close. One significant contract and will be at $1. And then I’ll buy you all the sushi you can eat.
My bad. Of course you are right. Why didn’t I see the veracity in your logic? Please allow me to paraphrase your position. “If they cannot make it in the direction they have been headed in these past 8 years (non-CE), they are going to make it in an area they are not even trying to break into (CE).” Makes perfect sense to me.