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Eutectix will be the old LQMT LF. They know their stuff. They will likely bring business to LQMT through the two machines first.
The question is who is going to buy more machines, scale the business? Does Eutectix put 20 machines on a floor? For now those machines are a playground to develop their material business and showcase next gen mfg. They are close to Tesla too.
Or is there another company in USA, with support of Eontec(CCP) and Li, to allow for such to happen.
This is the domestic mfg question. Or is Eontec(CCP) going to cut it dry and put a 20 machine mfg center in WI/GA.
I think we are discussing two different technologies. And, Materion sold the BMG business to Eutectix so they wouldn't mention.
Eutectix will likely be the USA BMG supplier...
https://eutectix.com/about/company-history/
Automotive in Q1/Q2 2021, imo. Before we find out if the real Apple beef will show up.
Likely some tire gauges..
I like its Detroit, staying with mfg theme - perhaps they will teach more than App creation and more of material advancement/mfg methods.
This chart says it all... if the market materializes, LQMT can be there with revenue, the 10yr consolidation is over... I am not sure what growth looks like or capitalization but if Apple uses the hinge and money flows to LQMT, this chart will look very different 1 year from now. And one must pay attention to the volatility on the beginning of the chart for reference of the implied volatility potential on the right side. If it goes, it is not going to wait for anyone.
10 Year Chart
I wouldn't be surprised if this initiative is vocalized even more. This is what Apple should be more about and it is much welcomed.
I have struggled with Apple over the years - fell much out of favor with their products and mostly because they weren't living by the chord they speak.
I do believe Eutectix will be a growing force..
I would imagine it could be along the lines of social equality(even funding of sorts, or non-profits, if lucky Made In USA talk)... finally Tim Cook recognizing double speak perhaps. Apple has profited from enormous social inequality its entire ride up(knowing that it likely lifted up Chinese poor). When these companies realize that much of the social issues that exist didn't just get thought up in ones mind but were created by many of the large behemoth firms who left the rural/urban mfg centers of USA! I would welcome a social PR that has teeth like Made In USA - not just twitter speak - but something that says, America can prosper because we are investing in our economy, our country. We also have strong partners like China who respect our IP. You saw what China did with Belt Initiative - invested in their mfg centers - and BMG is a major theme. Lets just hope they didnt take too much of our value with them.
Has Josh commented on this...
May be more a update to Trademark but could be wrong..
While market adoption of Li Maze and vision is present here, the fact is the LQMT license will not occur on the Magnesium products. Now, they may look down the block and into the vault at LQMT IP(Eontec mfg) and say, "Hey, we'd like to use that for ______." Maybe thats what we get out of this. But for now, no revenue.
And much of the focus with LQMT USA, Id imagine and if true, is on contracting the Apple hinge for LQMT license revenue. This in itself would ripple, I mean Tidal Wave, throughout the USA and many industries.
LQMT is not the technology here. Thats my point. Sure, potential but more potential is just potential.
The Tesla side has already used Eontec BMG. The technology discussed here is part of other maze companies.
Domestic Suppliers
I ask because of the blog post - if Li, Eontec(CCP) are ready to expand; specifically, to mend the political economy, it seems there may be a plan. But no one in USA, except for Eutectix, seems to be interesting in building out a infrastructure.
Is Foxconn in WI going to make the investment?
Is Hyundai in GA going to make the investment?
Scale is going to be key for LQMT, selling recipes/ingredients and collecting revenue(hopefully to put into more RD).
The Eontec machine we purchased were likely 500c's - for $780,000 for two machines, if not mistaken.
"During March 2017, we signed contracts with Eontec to purchase two hot-crucible amorphous metal molding machines (“Machines”) at a total purchase price of $780,000"
http://ir.liquidmetal.com/node/11376/html
"In 2021, we expect growth in operations with domestic suppliers."
https://www.liquidmetal.com/market-development-dec-2020/
Perhaps they simply mean supply companies in USA(product sellers) but not actual manufacturers setting up in USA. In essence, it would be nice to see 20 machines put in a factory in USA. This was always my thesis and over-arching reason for investing here. As much as the technology is important, the suit of services LQMT can provide is compelling. This originally was going to come from Materion(who sold business to Eutectix I believe) and Engel.
Would the fact that Tesla works with Eontec, already, make LQMT potential with Tesla null and void?
Is LQMT technology used in the door locks? Or an old Eontec recipe?
So we have the best ingredient and best recipes - all others buy the oven, cookie cutters and packing from Maze..
So, this means that for USA markets, domestic mfg'ing, Eontec will have to start selling machines to them...
Will they sell machines to domestic mfgr's yet?
Or is Eontec/LQMT going to keep a tight lid on the supply chain for now and how long can they do this?
I do remember seeing these..
All this information is mind boggling - seeing everything LQMT is about(similarities in mfg construct) is refreshing and also nerve racking that we haven't seen any specific deals with LQMT name attached, yet.
So, is the Tesla machine Eontec technology?
Whose technology is this? Thats the question..
We continue to see parallels across the globe with the use of new casting and molding techniques...
Isn't Tesla already using China version? I thought Eontec was making door handle cavities?
And how does Tesla become a USA LQMT customer then?
I mean the 10's of millions. I understand the contract manufacturer side - which is likely not going to be the main revenue that brings in the scaling business model. But I mean the licensing side. Additionally, we never get any information about who we are doing business with, ever.
I like the auto sector but with Apple playing out til 2024 for their car, I just worry it will be another black hole of information til then with them. Even if we get CE contract, its likely going to be blank labeled.
How are we going to get information about a contract if we never put out press releases?
What is crazy about LQMT is nobody actually knows anything about how we will make money, in many ways. I think right now we have this idea that Li, along with CCP, have invested heavily into BMG(Eontec) - both financially and intellectually(institutions) - and we have a MTA that has a ton of potential, exclusions and general ambiguity.
All I am saying, and have been saying, is the IP is the most valuable in world and Li brought it back to the brain in China. At some point, we(LQMT), has to see something tangible, outside of some contract mfg medical deals. Need to see something that permeates through the industrial metals and BMG industry with LQMTs name on it.
One more thing: while not out, Apple has lagged in innovation in years. The EV car is one example where they are playing "catch up" imo.
In this market, there are many players - maybe the IOS is key but thats really only one element. Apple should have released a car by now, imo, to maintain their innovation status.
imo, this is a major bottoming here - if LQMT will make it, it will be tell tale sign here over next 18 months. And with that, LQMT will need to test market.
I believe this move has only begun.
Again, $250m is the market cap first stop, imo. Based on Li investment + inflation +IRR.
While small, the revenue from last quarter has lessened the negative CF and put some stability to operating expenses. Cash preservation and market emergence is key here.
Yes, I agree with this statement. Robotics have changed - and will continue to make human labor more obsolete. And many foreign firms have moved to USA using USA labor. I think the major thing here is that Apple can now point to USA facilities.
Would be nice to see some Eontec machines next to Hyundai/Apple factory using LQMT. The renaissance I have been accumulating will make this whole experience for last 7 years with LQMT much more palatable.
If Apple makes cars in USA, they will finally turn the corner is terms of saying one thing about labor(society) and actually implementing a workable solution that fits the values of Apple. If so, they should be applauded and Tim Cook will now be able to definitely back this thesis. Now lets get to work on getting the phones Made in USA.
The day 106c proves me, and many others wrong, will be the one of the most enjoyable moments when I was wrong. I mean that. I have dramatically warmed to this idea recently with the auto news mostly(which 106c is clearly free and clear). The CE really may be the way described here too - if so, I applaud you all for having the insight!
If 106c, and LQMT gets license revenue, its big. But if Yihao only has floor space for 45,000,000 parts, they will need 3 factories for the output of these things because if someone buys them it will be like 5 at a time.
Id imagine these are still aluminum - the focus will likely be on hinges(complex) for 106c, if used. Small bottle caps arent that hard.
Id imagine he's taking razor thin, if any, margins on BMG - through CCP they likely want to just make the market happen..
In time, I'd imagine, with more scale, they'll take the margins up.
This is all speculation.
I will agree with this statement.
There is an old Native saying:
"Everything the power does, it does it in a circle"
If Li puts LQMT and BMG in a factory in USA through Hyundai, I will simply be amazed at the man.
This was and still was my thesis for investing in LQMT. It just so happens a man from China (may have) made it happen. Made in USA through China prowess.
I would disagree that the patents weren't integrated into much more than what we thought..
Much of the CE market, which we thought was excluded, wasn't and has materialized in large ways.
And the China investment was a key driver of the growth of Eontecs BMG expansion and market adoption. This is fact.
True.
I always wished it was USA that kept the IP and built a new supply chain here.
Companies like Materion should have been more aggressive, imo.
You talk to Li?
You may be right.
I also understand he is a business man, doing business. Perhaps he really just wants to hold(and expand) the global IP held by LQMT for BMG and be the go to guy for all things BMG, as he already is. Maybe he actually will expand IP with LQMT when revenue comes in.
However, Eontec(Yihao) has filed more patents in recent years than LQMT. Our R&D is almost non-existent.
China is clearly, unlike USA, making large strides in this area of mfg. BMG.
Lugee doesn't seem to be the type of guy to need to be a "billionaire" - he is more the type of guy that wants to better his country, his people, his industry. The money is a side product of intentions.
While I have been disgruntled with China(as we have seen many years of tilted macroeconomics and IP impressionism), they are extremely loyal to causes. Li is extremely loyal to BMG and China renaissance(Belt Road Initiative) - LQMT is maybe a conduit with unintended consequences.
Just one blog post or word from our CEO would be nice.
One thing I will add here. I think Lugee's investment has probably already made him the 8% annually or more in many other ways as the IP and acquired markets/market share via IP is tangible with mfg contracts and tightly controlled essence with his Maze. And I still believe China was a decision maker on this, imo. Hence the Eontec investment only 1year later. So, there is so much social capital and general market control that propelled Eontec and market dynamic. China wanted to ensure it led the world in this area and it is.
I just ponder often what Li wants out of LQMT USA.
Gotcyha..
I think I was confusing your ingot reference for a sheet - I didn't think I was making sense when I was trying to convert to sq ft.
So, basically he has the next generation method covered for many things outside of BMG.
With 90 machines slated for Yihao floor, thats 45,000,000 annual parts out of the factory based on the the PR here:
https://www.liquidmetal.com/yihao-metal-partnership/
If LQMT is going to be used in Iphone, and Yihao is making for other phone mfg's, it seems there is still a lack of capacity for the market demand?
Ie; Apple stopped giving out sales volumes in 2018 - last reported they were doing 200m + Iphones annually. How can they meet demand unless they are planning on a low demand launch at first?
Trying to equate capacity to market. If 106c is actually going to be used, how can they meet capacity/demand at Yihao alone? And if license revenue will flow, some serious catching up will need to happen to the value of LQMT.
Lugee paid $63 mil for 44% - this puts a market cap at around $150m and I would imagine he thinks he got a good deal as no one buys anything unless its a good deal. With a simple 8% annual IRR expected on any investment made, that already puts market cap at $225-$250m based on 5yrs of time value, not to mention tangible/IP value.
I still worry that the IP side of LQMT will stall to point that innovation of materials will happen in China vs. USA. And large advances will not benefit LQMT. This is me evaluating risk side. Once the PLA is done, isn't it open game for market advances to IP vs. the 5 year exclusivity?
Thank you.
One last question:
How large can LQMT parts currently be made?
Geared Hinges - Apple Patent
If LQMT is involved, and paid, and foldable phone happens...maybe this patent has already been discussed.. not sure..
https://www.makeuseof.com/foldable-iphone-folds-different-ways-patent/