is…out the door and not looking back…
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It doesn't say anywhere it was for molds. I checked Eon too. How did you know it was for molds if it's not in either financial statement of either Company?
Haha, hey, we agree on something!
Will be interesting to see how this plays out...
You have Steipp and Co who want large payouts on their options and you have Lugee who wants an uplisting and 100,000,000 shares that are about 33% underwater.
There is no way Steipp didn't know there was a more than excellent chance he'd be moved out if he agreed to give up 3 Board seats and lose the Board. And since his Agreement is one year severance and health benes and he's 68, it's unlikely he'll find a job like this again. He jumped at this opportunity and gave up control of the Board because he KNOWS he will score HUGE in - maximum - one year.
However, if he does score big, expect to see him on some other Boards of Directors of some notable companies. There is nothing sweeter in retirement than a Board seat on a notable Board or Boards. He was just biding time for the right time.
It's in the most recent 10Q of LQMT.
Haha, why am I doing all the work? Don't you have it, if noted, on the Eon side? Thanks.
It doesn't say it's for molds on the LQMT side, though. It only says it's for "services." I presumed it was consulting services, not molds:
Eontec is a publicly held Hong Kong corporation of which Professor Li is the Chairman and majority shareholder. As of September 30, 2016, Professor Li is a greater-than-5% beneficial owner of the Company. Services procured from Eontec were $58 and $68 during the three and nine month periods ended September 30, 2016, respectively.
In the Eon Annual or the LQMT Annual? Oh, wait a second, is that the costs paid to Eon that was footnoted? I was wondering about that, but I don't think it said it was for molds.
Check that - it couldn't be in LQMT annual because they have a 12/31 year end and this was a 2016 deal. Is it in the Eon "10K" - not sure if they call it that in China.
It's interesting that he is working on controlling the entire supply chain - 60% interest in zirconium (raw materials), his own machines (manufacture), and, of course, the cross-licenses giving him access to the IP he needs to produce product unfettered. He's not subject to the cost factors of Materion having to make money off alloy or Engel having to make money off machines. He's creating the necessary cost advantages, as well as controlling what he wants when he needs it. Have to have the money to do that and, fortunately, he does.
Do you have any knowledge if Eon makes their own molds?
Couple things kind of interesting from the licensing Agreement-
9.2. This Agreement shall be governed by the laws of the State of New York, without reference to its conflicts of law principles. Each of the parties: (i) agrees that any legal suit, action or proceeding arising out of or relating to this Agreement shall be instituted exclusively in New York Supreme Court, County of New York, or in the United States District Court for the Southern District of New York, (ii) waives any objection which it may have or hereafter to the venue of any such suit, action or proceeding, and (iii) irrevocably consents to the jurisdiction of the New York Supreme Court, County of New York, and the United States District Court for the Southern District of New York in any such suit, action or proceeding.
1.
The licenses granted to Eontec and LMT under this Agreement shall exclude the following products and fields of use:
a.
Any Consumer Electronic Products (as defined below) or any components or sub-components suitable for use with any Consumer Electronic Products. For this purpose, “Consumer Electronic Products” means personal computers (portable and desktop); tablet or slate style computing devices; handheld electronic and/or communication devices (e.g., smartphones, digital music players, multi-function devices, etc.); any device whose function includes the creation, storage or consumption of digital media; any component or sub-component in any Consumer Electronic Product; and any accessory that is the same or similar (in the sole discretion of Apple, Inc.) to an accessory made or sold by or on behalf of Apple (regardless of when Apple sold or started to sell such accessory, including after date of the closing of the Proposed Transaction) that is suitable for use with any Consumer Electronic Product.
b.
Any watches or components for watches.
Because he's a kook.
Haha, you crack me up.
Maybe you should give specifics before you post something. Anybody could have made up that BS. Happens all the time.
$LQMT Chinese bought control and possibly taking LQMT private. LQMT shares will still represent a monetary value, you will have the same right to a portion of the company's profits as you do now, etc., but you will not have the benefit of the market setting a price per share so current valuation will be harder. Should you wish to buy or sell stock, you will have to find someone yourself who is interested in striking a deal with you at a price point that you feel comfortable with.
Steipp put himself first and shareholders a distant second.
Not taking a position either way on Steipp, but come to think of it, he knew exactly what he was doing. He was biding time until Apple was primed to use it and/or he found the right partner to do the heavy lifting and move it forward, so he could make out well. People like guarantees before they give up the keys. It's why he didn't give up seats to Visser. Imo, they played Visser for what they needed from him, who dumped a truckload right before the Eon deal was signed.
Hindsight is perfect, but in retrospect, happens all the time on Wall Street with these types of micro caps. They collect "reasonable" salaries, sell shares to stay alive, periodically, and strategically, drop pr's to carry out the story, load up on options and then when it's ready for the run, get immediate vesting on termination.
Those sorry to see him go and think he shouldn't have been jettisoned (again, I'm indifferent, but Lugee saw differently, so he took a position on the issue and that's all that matters), if you think he was smart, then just think if he didn't make sure he positioned himself well on exit and maybe wasn't shedding tears that he was out.
Again, don't really care either way, but I think he planned this out all along. Just my useless 2 cents.
Thats why Li bought 40 percent of LQMT before the buyout with money he bought from selling Eontec shares
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=126827719
Merger.
They halted them when the LQMT deal was announced as well.
Haha, yes, damn Bloomberg,Google finance and MSN. ALL LIARS!!!
It's one big, damn conspiracy and EVERYONE is in on it!!!
Not a bad idea to sell if you broke even and think Bloomberg makes things up.
Thanks for the laugh, though! You're a funny guy!!!
yeh, at BREAK EVEN and OUT.
To make large amounts of BMG, they need zirconium. Oh, forget it. GL and Bye. It's been real.
Halt was back in March 2016. It's BS posting.
Hard to say, thinking no, but Google finance shows no trades as well...Shenzhen Exchange is open for trading now.
https://www.google.com/finance?cid=853317561149216
To be fair, the only other competitor of their's not trading is Fujian Minfa. You'll see if if you move down the page.
Guessing this is likely much ado about nothing...
Watchlist
Dongguan Eontec Co Ltd 300328:CH SHENZHEN
Trading has been halted 300328:CH
13.55CNY
0.29
2.19%
As of 2:00 AM EST 11/25/2016
Yes, correction, I meant Shenzhen SEG, not SEc.
Shenzhen SEC Co.-
(2) Analysis of Main Business
Main business of the Company includes development and operation of specialized electronics market and supporting projects,
property lease service, IT product channel retail terminal service, e-commerce and value-added microcredit service.
? Operation of the electronics markets
In the first half year, facing the intense market competition and the impact from new-type commercial pattern, the Company actively
explored the new development pattern, constantly enhanced the operating capability and innovation capability of electronics market
mainly operated, built and optimized the operating mode of “physical store + e-commerce + channel” and duplicated this mode in
other SEG electronics markets outside Shenzhen, at the same time, the Company strengthened the building of physical channel and
continued to cultivate Tmall of SEG electronics market. In the field of selecting products, the Company achieved precision and
novelty, as well as lowered down the costs.
The Company seizes the opportunity that Shenzhen Municipal Government intends to build Huaqiang North as the maker center.
Based on its own advantages, the Company established the SEG International Maker Product Exhibition and Promotion Center. The
Company intends to attract high-quality and innovative products through SEG electronics market, build vertical O2O channel with
segmentation, take smart hardware and maker’s products as the core concept, fully exert the capability of distributing resources, link
the upstream and downstream channels of market, and finally for the Company’s own platform. It will be beneficial to attract
consumers to market, achieve the diversified competition with other professional markets, and to promote the Company’s business
transformation and upgrading.
In the report period, the Company's electronics market business achieved a total operating income of 158,490,000 Yuan, a decrease
of 0.47% over the previous year and a total profit of 44,790,000 Yuan, a decrease of 11.69% over the previous year, mainly due to
the decrease of the rental income of Nanning SEG market and the earlier-stage fees incurred by Suzhou SEG Digital.
? Business of property leasing service
In the report period, the property rental business of the headquarters and the Company's subsidiary SEG Baohua continues to increase
steadily.
With the continuous depression in the property rental industry in the entire Shenzhen Huaqiang North area, the vacancy rate of the
surrounding offices continues to increase, and the rental level maintains the status quo or has a slight decline. SEG Baohua has
Summary of 2015 Semi-Annual Report of Shenzhen SEG Co., Ltd.
4
overcome the difficulties by improving service levels and by taking effective management measures, such as grasping the golden
opportunity of Huaqiang North Maker Center and so on. In combination with the popular maker center concept of Huaqiang North,
SEG Baohua actively explores new performance growth points and stabilizes the occupancy rate at 99% or higher in the report period.
Meanwhile, SEG Baohua remains the rental at the highest level among the surrounding offices in Huaqiang North.
In the report period, the Company's property rental service yielded a total operation income of 37,380,000 Yuan, a year-on-year
increase of 6.98%, and a total profit of 8,760,000 Yuan, a year-on-year increase of 46.97%.
? Business of the channel retailing terminal of IT products
In the report period, the overall business in the channel retailing terminal of IT products of SEG Industry, the wholly owned
subsidiary of the Company, is in good conditions, and each economic indicator achieved a dramatic increase compared with that of
the previous year. In the first half of 2015, SEG Industry has formally signed a memorandum of cooperation documents with Apple
and officially obtained the authorized Apple distributor for big customers in the China Southern Region. In mid-June, SEG Industry
has achieved good results in the first App recommended council for big customers held in Shenzhen after the cooperation.
4. Actively researching the new projects
A. To promote the transformation and upgrading of the Company's main industry and extension to the upstream of the industry chain,
the Company has established a strategic cooperation partnership with Dongguan EONTEC company (hereinafter referred to as
EONTEC), making use of own advantages in technology research and resources. The cooperation intends to promote the
development and application in the consumer electronics and related fields of new materials such as liquid metal. Both parties signed
the Strategic Cooperation Framework Agreement of EONTEC and Shenzhen SEG on May 27, 2015.
Rige, he's a capitalist pig. Good for him. An ideal financial life is a Capitalist/Communist. He's already a billionaire. He is restricted on Eon stock sales by the Chinese govt. Strong rumor has it that he wants to uplist and doesn't want to hear no. He wants to make money on the stock and a billionaire is probably not looking to make just 63 mill. He could always do what you're talking about, but will the other 400 mill shs accept a double? I wouldn't. Plus, his appointments just filed their Form 3's, so especially Carrubba, wants to cash out BIG.
I understand your reservations and hesitancy, but Lugee puts in 63 mill and the first thing that happens is one of these predatory financiers from 2013 says pay us 750K because you guys never said the financing relationship was over. If I was Lugee, that would piss me off something fierce that I put in 63 mill and more than 1%, or 1 month of SG&A, has to be paid out because someone didn't send a termination letter.
My position is we didn't see any real increase in valuation until Lugee bought in, unless you're one of those brilliant (aka FOS Longs) who claims they're up 100% when they were caught in lies before and threw vile, vulgar, hissy fits about being called out on it.
I am guarded and cautiously optimistic, nothing more, until we hear, or see (prefer the black and white numbers) more.
I could go on and on
it would be a waste of my time.
Stifle, Edith, you scare me when you set forth any assertions about value or strategy.
Yes, I do - based on additional info.
I didn't like their initial rollout, but look at any new tech and how well those roll out. The key is to learn from their mistakes and they're learning - quickly. Imo, Syl Chao is very sharp.
6 years no revenues to speak of and no real products. 18 months and Lugee has proven he can manufacture the Turing phone.
Look up Syl Chao, Lugee Li and Dongguan Eontec and tell me Lugee isn't involved in Turing - and he issued free demo phones, albeit with delays, but he got it done. The cost of those demo phones has to be a pretty big additional cost, as they have users debug them before they issue final versions. Smart guy, shrewd guy, driven, and organized.
Thank you.
If outsider is brought in, Abdi needs to feel "great" about it or to be sure it is "neutral" at least.
.Well, I don't know nothing from nothing
I'm having a really hard time following the logic in your post.
What's the point you're trying to make?
But personally, I would just feel rewarded if someone were to deliver a couple of tacos and a plate of loaded hash browns right now.
I don't care much about discounts. I'm more concerned with Lugee pushing all BMG revenues to LQMT. He's disincentivized if he has to use Engel machines when he may, technically, have his own IM/diecast machines with Eontec. (Why buy what you own?). And the terrioriality provision could, if tied in with the Engel exclusivity, limit that area, too, to LQMT.
The bottom line is that I think Joshuayeu may be right that Lugee may have found ways around all of this that would push all the territories to LQMT, enable the use of Eon's pre-exisiting formula, and allow LQMT to avoid having to use Engel machines. This is most important because it allows Lugee the best opportunity to raise the LQMT stock price for himself because of the consistent lock-ups on insiders in China and the limited trading opportunities on Eon stock. His best opportunity to make serious money on publicly traded stock is in the U.S., but he needed to eliminate those potential roadblocks to achieve the best opportunity for success.
All of this dovetails fairly nicely with Steipp out (whether voluntary or not), Lugee getting Board control for changes in Agreements, Materion has barely mentioned LQMT or BMG's, and Engel has been fairly quiet after a lot of enthusiasm for LQMT. In other words with waning of interest in those areas leaning towards LQMT finding other means to replace all of that, now that Lugee is in.
Not directed at you, but I find it interesting that anyone would just "want a pr" when we've had all those BS pr's from the past that went absolutely nowhere and just pissed people off.
The guy has been in control essentially only since Steipp left. Give him a few months and see where LQMT ends up. He's the first guy with major skin in the game and no provisions for adjustments of option or shares prices, like Visser - or any other financing deal, for that matter.
Assuming the excerpt in the financial statements accurately represent the LQMT-Engel Agreement, which is a very large and dangerous assumption
Thanks. Will check. Yeah, that guy knows his stuff.
So, how do you see the Engel situation resolving itself so that Engel is out of the way, if that is Lugee's intention, and revenues can be generated through LQMT?
Right now, considering Engel and the territoriality provisions, Eon can use their machines in Asia and generate revenues to Eontec, only, unless Eontec consents to the change to allow those revenues to be allocated to LQMT, but if that happens, it gets tricky because Engel may have an opening for violation of the exclusivity Agreement.
However, any customers in Europe and N.A. are customers of LQMT and subject, currently, to the Engel exclusivity. Of course, the rest of the world is fair game, but LQMT is still subject to Engel, as that Agreement currently stands.
Would be great to understand your thoughts. Thanks.
Bottom line - there are a myriad of ways Lugee could have cut a deal without needing 400,000,000 shares to eventually sell when he creates a valuation that makes it worth his while to sell and I just don't see him going that route until it's in dollars, as dumping before that would seriously hamstring his value for any future sales, particularly when volume is too light to execute any large sales.
Eontec dual use machine is planned for both injection mold and injection mold use (hence no conversion required)
I'm having a really hard time following the logic in your post....Where has the logic gone on this board?
In other words, in 2 separate financial statements, they refer to the same December6, 2013 Engel Agreement, but "someone" screwed up, didn't read the footnote and they corrected the fact that exclusivity applied to NOT ONLY licensees, but LQMT Engel purchases as well. To me, that's material and they should have noted the error in the later financial statements, but the gist of it is that LQMT would get a royalty on machines they purchased from Engel? It's circular and doesn't make any sense.
I do not see the Engel Agreement as public, but all the footnote in the financial statement says is that the exclusive agreement relates only to sales of Engel injection molding machines to the Company and its licensees, but doesn't refer to what might be Lugee's objective - manufacturing with diecast. (As an aside, I think a previous footnote only mentioned machines sold to licensees and not LQMT purchases as well).
You make a great point about "buying the guts" to potentially convert the Eon machines, if the "guts" can be converted on a diecast machine.
On December 6, 2013, the companies entered into an Exclusivity Agreement for a 10 year term whereby the Company agreed, with certain exceptions and limitations, that the Company and its licensees would purchase amorphous alloy injection molding machines exclusively from Engel, and this exclusivity right was granted 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.
On December 6, 2013, the companies 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.
Haha, highly doubt it.
That's a RARE caller, right there. VERY RARE...most likely one of those that thinks everyone else is a narcissistic ahole and won't share their "great DD."
Ok, sounds good.